Taxes in Teton County: Idaho vs Wyoming (End of 2025 Guide)

A complete breakdown for buyers, homeowners, investors, retirees, and relocating professionals comparing the tax structures of Teton County, Wyoming and Teton County, Idaho.

Why Teton County, Wyoming and Idaho Are So Different

Teton County, WY and Teton County, ID sit only minutes apart, yet their tax structures, regulatory environments, and cost profiles differ dramatically.     

• Teton County, Wyoming: One of the most tax-friendly areas in the U.S., premium real estate values, and strong long-term appreciation.
• Teton County, Idaho: Traditional tax system, lower home prices, flexible zoning, and strong rental demand.

Why Wyoming Is One of the Most Tax-Friendly States in America

Wyoming consistently ranks among the more tax-friendly states for high-income earners, retirees, and real estate investors. Its tax structure supports long-term wealth preservation, asset protection, and privacy.

Key Benefits:

• No state income tax (wages, dividends, interest, rental income, capital gains)
• No retirement income tax (Social Security, pensions, IRA/401k withdrawals)
• No estate or inheritance taxNo gift tax
• No corporate income tax
• No real estate transfer tax
• Low property taxesBase sales tax of 4% (local options may apply)
• Elite trust laws, including dynasty trusts up to 1,000 years
• Business-friendly regulatory environment
• Highly retirement-friendly tax structure

How Wyoming Maintains Low Taxes

Wyoming funds public services primarily through severance and mineral royalty taxes on oil, coal, natural gas, and other resource extraction—reducing reliance on personal and income taxes.

Property Taxes in Wyoming vs Idaho: How the Math Works

Property taxes are one of the most misunderstood differences between Wyoming and Idaho.

• Wyoming residential property is assessed at approximately 9.5% of market value
• Idaho property is assessed at 100% of market value, with taxes driven by local budgets

What Is a Mill Levy?
A mill represents $1 of tax for every $1,000 of assessed value.
The average mill levy in Teton County, WY is approximately 57 mills.

Property Tax Formula

1.  Assessed Value = Market Value × Assessment Rate
2. Tax Owed = Assessed Value × Mill Levy

Example (Teton County, WY):

• Market Value: $200,000
• Assessment Rate: 9.5%
• Assessed Value: $19,000
• Taxes Owed: $19,000 × 0.056229 ≈ $1,068

More Details Here

Idaho Taxes: Lower Home Prices, Traditional Tax Structure

Idaho offers a lower cost of entry into homeownership but operates under a more traditional state tax system that can impact investors and retirees.

Key Idaho Tax Features:

• 5.8% flat state income tax
• Property taxes vary by district and voter-approved budgets
• 6% state sales tax
• Short-term rental taxes include state lodging and local occupancy taxes

Important:
Idaho residents pay state income tax on all income, including rental income earned in Wyoming.

Wyoming vs Idaho: Which Is Better for You?

Choose Wyoming if you:

• Earn high income
• Want long-term tax efficiency
• Prefer strict STR regulations
• Value appreciation and premium real estate
• Want strong trust and estate planning tools

Choose Idaho if you:

• Want more attainable pricing
• Prefer flexible STR zoning
• Seek land, development, or build opportunities
• Target higher cash flow or cap rates
• Don’t mind paying Idaho income tax

The Popular Strategy: Living in Wyoming, Investing in Idaho

Many investors and high-net-worth individuals use a dual-state strategy to maximize lifestyle benefits and tax efficiency.

Live in Wyoming: 

• No income tax
• Premium lifestyle and appreciation
• Wealth preservation

Invest in Idaho:

• Lower acquisition costs
• Strong STR demand
• Higher yield potential

Frequently Asked Questions

Q: If I live in Idaho but own rentals in Wyoming, do I owe Idaho tax?
A: Yes. Idaho taxes residents on all income.

Q: Does Wyoming have an income tax?
A: No.

Q: Are STR rules stricter in Jackson?
A: Yes—significantly.

Q: Are property taxes lower in Wyoming?
A: Generally, yes, though home values are higher.

Q: Does Wyoming tax retirement income?
A: No—none.

How Harland Brothers Real Estate Helps Clients Compare Wyoming vs Idaho

With deep expertise in Jackson Hole, Teton County, Wyoming, and Teton Valley, Idaho, Harland Brothers Real Estate provides clear, experience-based guidance rooted in real market knowledge—not generic tax advice.

Explore The Neighborhoods Here