Filing your Wyoming Annual Report comes with one key question for every founder: How much is the license tax, and how is it calculated? In Wyoming, the formula is simple—but mistakes in the asset base or reporting can cause delays or overpayments. This blog explains the exact calculation method for 2025 and what you should (and shouldn’t) include.
Relevant IRC Codes & Definitions
While Wyoming’s license tax is determined at the state level, relevant federal tax references include:
- IRC §162 – Allows deduction of state and local business taxes, including the Wyoming license tax, as ordinary business expenses.
- IRC §446 – Provides general rules for reporting income and deductions using a consistent method, applicable when allocating asset values in multi-state operations.
Remember: this license tax is not based on revenue, but on the value of assets physically located or used in Wyoming.
IRS & State Form References
IRS Forms:
- Form 1065 – Partnerships
- Form 1120 / 1120-S – Corporations
- The license tax is not reported on these forms, but may be deducted under business expenses.
State Requirement:
- Wyoming Annual Report
- Filed annually with the Secretary of State
- Tax Rate: 0.0002 of in-state assets, or $60 minimum, whichever is higher
Real-World Example
Example 1:
AlphaTech LLC owns $150,000 in Wyoming-based servers and hardware.
- Calculation: $150,000 × 0.0002 = $30 license tax
- Since $30 is below the $60 minimum, the company pays $60.
Example 2:
BetaWeb Inc. owns $500,000 in equipment located in a Cheyenne warehouse.
- Calculation: $500,000 × 0.0002 = $100 license tax
- Tax due: $100
Assets located outside of Wyoming or intangible assets like IP and software licenses are excluded.
Step-by-Step Guide to Calculate the 0.0002% Tax
- List all tangible assets physically located in Wyoming (e.g., servers, office furniture, inventory).
- Determine the fair market value as of the end of the reporting year.
- Exclude intangible assets like copyrights, trademarks, software, or goodwill.
- Apply the formula:
- Wyoming Assets × 0.0002 = License Tax
- If the result is less than $60, pay the $60 minimum tax.
- Report total asset value and pay during the online Annual Report submission.
Conclusion
The Wyoming license tax is one of the lowest in the country—but only if reported accurately. Knowing what to include and how to value your assets is key to staying compliant and avoiding overpayment. For most small businesses, especially those in tech, the $60 minimum applies—but it’s still critical to report assets correctly.
Call to Action
Unsure which assets qualify or how to assign fair value?
Anshul Goyal, CPA EA FCA, is a licensed Certified Public Accountant in the United States, an IRS Enrolled Agent, and a Chartered Accountant from India. He represents U.S. and Indian founders in tax compliance and litigation matters at both federal and state levels.
👉 Schedule a consultation with Anshul Goyal, CPA. We’ll review your asset base, calculate the correct license tax, and file your Annual Report without a hitch.
Disclaimer
This blog is provided for informational and educational purposes only. It is not intended as a substitute for personalized legal, tax, or financial advice. The content herein does not establish a client-accountant relationship and should not be relied upon to make business, tax, or legal decisions without consulting a qualified professional.
FAQs (Top 5 High-Searched)
Q1. What is the Wyoming license tax rate?
A1. 0.0002 (or $60 minimum) of assets located in Wyoming.
Q2. What assets are included in the calculation?
A2. Tangible property in Wyoming—e.g., furniture, equipment, inventory.
Q3. Can I exclude assets stored out of state?
A3. Yes, only Wyoming-based assets are counted.
Q4. Do I need to report intangible assets like patents or trademarks?
A4. No, intangible assets are excluded from the calculation.
Q5. Is the Wyoming license tax deductible on my IRS return?
A5. Yes, typically under IRC §162 as a business expense.
About Our CPA
Anshul Goyal, CPA EA FCA, is a U.S.-licensed CPA, IRS Enrolled Agent, and Chartered Accountant from India. He has served over 2,000 clients worldwide, helping them stay compliant while optimizing their U.S. and cross-border tax strategies. His expertise includes IRS representation, entity structuring, and tax savings of over $200M delivered to date.