Taxes for Canadian Businesses in the USA - Wyoming

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Taxes for Canadian Businesses in the USA – Wyoming

December 10, 2020

Question:

What state taxes does a Canadian business pay in Wyoming?

Answer:

Sales Tax

Wyoming’s statewide sales tax rate is 4%. Depending on local municipalities, the total tax rate can be as high as 10%.

Use Tax

Wyoming’s statewide use tax rate is 4%.

Unemployment Tax (Payroll Tax)

If you have employees working in Wyoming, you must pay unemployment taxes on their gross wages up to the taxable wage base ($26,400. as of 2020). Wyoming’s unemployment tax rates for new employers vary by industry category and range from 0.18% to 8.72% depending on experience rating.

Corporate Income Tax

There is no corporate income tax in Wyoming.

Discussion:

If you remain under certain thresholds in this state, you are not responsible for taxes.

Tax	Threshold
Sales	$100,000 or 200 transactions
Use	$100,000

Availability of Treaty Benefits

Use taxes are often treated as income taxes by the Canadian government when calculating income in Canada and applying for foreign tax credits. Meaning, if you pay use tax in the USA but have no net profit, you will not benefit from a tax credit theoretically. The actual application is a bit more complex.

If you would like more information on this topic, please contact a member of the Empire CPA team by filling out the contact form below.

Canadian and foreign tax laws are complex and have a tendency to change on a frequent basis. As such, the content published above is believed to be accurate as of the date of this post. Before implementing any tax planning, please seek professional advice from a qualified tax professional. Empire, Chartered Professional Accountants will not accept any liability for any tax ramifications that may result from acting based on the information contained above.