As the new year approaches, Wyoming officials are encouraging homeowners to apply for recently implemented tax exemptions that could change in 2026.
Kenneth Guille, administrator of the property tax division for the Wyoming Department of Revenue, told Homes.com that residents must register their properties as owner-occupied — meaning they live in them for eight months a year — to qualify for a 25% tax exemption next year.
“In 2025, everyone who owned a single-family dwelling and associated land got 25% taken off their taxable value,” Guille said. “In 2026, the law changes to only folks who occupy their single-family residential structure and associated land.”
Guille said people can apply online and will need to do so early next year to qualify. The Department of Revenue is still determining the exact deadline.
Additionally, Dave Divis, Sweetwater County assessor, said long-term homeowners could qualify for a substantial tax exemption.
“It was approved in the last session and signed by the governor,” Divis said. “You must pay property taxes in Wyoming for 25 years — not on the same property, not even in the same county — but as long as you pay property taxes, you’re 65 years of age by the time the deadline rolls around and you live in your house for eight months, you can actually get 50% off your property tax liability.”
Divis said there is also a 4% residential property tax cap on increases “unless it’s new construction, you’re a new owner or you’ve changed the footprint of the home.”
Overall, Guille and Divis said, the exemptions don’t affect their offices much, but they have a greater impact on local communities, which impose the taxes.
Lawmakers weigh changes to owner-occupancy rule
Guille said there is a chance the owner-occupancy stipulation will be removed if legislators approve an amendment to the law when the next session starts in February.
State Rep. Tony Locke, Republican of District 35, told Homes.com that the intention of this and the other tax exemptions is to provide broad relief for homeowners as housing costs increase.
However, there were concerns that the 25% exemption would have a significant impact on local county and city budgets after it was implemented. Legislators approved the owner-occupancy requirement to address that concern.
Locke said lawmakers are now worried the requirement is too limiting.
“For the most part, across the entire state, we’ve run the numbers and we’re still doing estimates to see what makes the most sense, but at this point, we’re finding that the 25% is a minimal impact, considering how much everybody’s property taxes have gone up across the board,” Locke said.
Divis said there is still an effect on local communities.
“What’s going to happen is you’re going to see counties and cities that are not going to be able to do certain projects,” he said. “If the legislature continues to reduce property taxes, those services are going to take a bigger hit than they already have, and it’s going to be big.”
Locke said he doesn’t “minimize the fact that it is a reduction in their budgets.”
“That being said, we’re trying to be very conscious,” he said. “That’s why, as we move forward on all these bills, we’re going through a detailed number analysis to make sure we’re careful with how we impact local budgets.”
There is additional worry about the potential deadline early next year for when homeowners must apply.
“We’re very concerned that a large number of homeowners will fail to register on time, which will adversely impact people getting that benefit next year,” Locke said.
Legislators consider extending long-term tax relief
Along with the owner-occupancy requirement, Locke said, legislators are also considering a new bill that would change the long-term 50% tax exemption.
“When it was first put in place, our long-term homeowners were going to see that bill in 2025 and 2026, and then the bill sunsets,” Locke said.
The bill would remove the sunset.
Locke said the state is doing its best to keep all cities and counties in mind.
“We’re not trying to cut anybody’s legs out, but we are trying to leave money on the kitchen table for the people,” Locke said.