Explore Our Tiers & Services! Click Here to Get Started.
Skip to Content
| Call Us Today! 866-458-7966
Top
Wyoming Your Business Partner for All Things Sales Tax

Wyoming Restaurant Sales Tax Guide

Prepared by Sales Tax Helper

Table of Contents

  1. Introduction
  2. General Rules
  3. Meals and Drinks
  4. Exempt Sales
  5. Alcoholic Beverages
  6. Tips & Gratuities Rules
  7. Employee Meals
  8. Complimentary Meals
  9. Taxable Purchases
  10. Food Delivery
    • Delivered by Business Direct
    • Third-Party Delivery (e.g., Uber Eats)
  11. Audit Considerations
  12. Voluntary Disclosure Agreements (VDAs)
  13. Tax Collected Is the State's Money
  14. Conclusion
  15. References & Resources

1. Introduction

For restaurant owners, cafes, food trucks, and cafeterias operating in Wyoming, the state's sales  
and use tax rules present unique challenges. Unlike some states that treat all food consistently,  
Wyoming distinguishes between food for domestic home consumption (generally exempt) and  
prepared foods (taxable). Wyoming's tax treatment of restaurant operations depends on multiple  
factors, including the nature of the food preparation, whether gratuities are voluntary or  
mandatory, employee meal policies, and delivery service arrangements.  

Wyoming applies a state sales tax rate of 4% on most prepared foods and meals, with local  
governments able to add up to 2% in additional taxes, bringing the maximum combined rate to  
6%. Understanding these distinctions is crucial for proper compliance and avoiding costly  
penalties and interest.

Purpose of This Guide

This guide is designed to help food service businesses navigate Wyoming's sales and use tax  
rules related to restaurant operations. It focuses on:

  • General Taxability Rules: Clarifying when prepared foods, beverages, and related  
    services are subject to Wyoming sales tax at the state rate of 4% plus applicable local  
    taxes.
  • Exemptions and Special Cases: Understanding which sales qualify for tax exemptions  
    and how to properly document them to withstand audit scrutiny, particularly regarding  
    food for domestic home consumption.
  • Gratuities and Service Charges: Distinguishing between taxable mandatory service  
    charges and non-taxable voluntary tips, which has significant implications for both tax  
    compliance and employee compensation.
  • Operational Considerations: Managing tax obligations for employee meals,  
    complimentary items, and food delivery services in compliance with Wyoming  
    Department of Revenue regulations.
  • Audit Considerations: Identifying common tax audit triggers unique to the restaurant  
    industry and implementing best practices to minimize audit risk.
  • Voluntary Disclosure Agreements (VDAs): Explaining the process for restaurants to  
    rectify past noncompliance while mitigating penalties and limiting back-tax liability.

Why This Matters for Food Service Businesses

Wyoming's sales tax laws impact restaurants, cafes, food trucks, and cafeterias in multiple ways:  

  • Financial Impact: With Wyoming's 4% state sales tax plus local taxes that can reach up  
    to 2%, improper tax collection can significantly impact both a restaurant's bottom line  
    and customer pricing strategies.  
  • Compliance Complexity: Determining what is taxable versus exempt can be  
    challenging, particularly with Wyoming's specific definitions of "prepared food" versus  
    "food for domestic home consumption." A single transaction might include taxable  
    prepared food, non-taxable grocery items, and various service elements with different tax  
    treatments.  
  • Audit Risk: Restaurants are frequent targets for sales tax audits due to their cash-  
    intensive nature and complex food classification requirements. The Wyoming  
    Department of Revenue often scrutinizes gratuity practices, cash reporting, and  
    exemption documentation.  
  • Criminal Exposure: Failure to properly collect and remit sales tax can result in severe  
    penalties, including criminal charges for theft of state funds. Restaurant owners can be  
    held personally liable for unpaid sales tax, even if their business is structured as a  
    corporation or LLC.

This guide will walk through Wyoming's specific sales tax rules governing restaurant operations  
while referencing applicable statutes, administrative rules, and Wyoming Department of Revenue  
guidance. Throughout the guide, official Wyoming Department of Revenue sources will be  
linked for further reference, enabling restaurant owners to defend their tax positions with  
authoritative documentation.

By understanding these complex rules and implementing appropriate compliance measures,  
restaurant owners can minimize tax liabilities, reduce audit exposure, and avoid costly penalties  
and interest.

You're currently viewing a preview. To access the full guide and unlock tools designed to simplify your sales tax obligations, just create a free account.

Your free Sales Tax Helper account gives you:

  • Full access to this and other expert-written guides
  • Our Nexus Checker to assess your exposure across states
  • State- and industry-specific insights and compliance tips
  • Updates on new rules and best practices to stay ahead

No credit card required — just expert tools built to keep you compliant and confident.  
Create your free account now to unlock the rest of this guide.  

Reviews

    "Jerry Provided Calming, Clear Guidance"

    I can't say enough about Jerry and STH. We were in a bit of a panic re reaching nexus levels and dealing with reseller tax ...

    - Mike L.
    "My Entire Experience Was Superior"

    My entire experience from intake to resolution with Sales Tax Helper was superior. '11' on a scale of 1-10! Initial meeting ...

    - Tim N.
    "Prompt, Courteous & Helpful!"

    I sincerely am grateful for the prompt, courteous, and helpful that has been offered me by Sales Tax Helper. My agent, Alex ...

    - Carol M.
    "Professional and Very Communicative"

    When my business needed guidance with sales and use tax, I reached out to Sales Tax Helper through their website and received ...

    - Pierce L.
    "They Are Experts in Their Field"

    Jerry & Alex are excellent at what they do. They helped me navigate some very difficult and stressful situations. They’re ...

    - Greg M.
    "Excellent Team to Work With!"

    The team at Sales Tax Helper was excellent to work with. I had a complex business sales tax challenge that they methodically ...

    - Mike M.
    "Always Provide Accurate & Prompt Responses"

    Alex and Jerry always provide very accurate and prompt responses to my inquiries regarding the sales tax. They also bring ...

    - Lukas P.
    "Jerry is the best!"

    Jerry is the best! I made the mistake thinking I could deal with the use tax auditor on my own not realizing that I would be ...

    - Gary O.
Sales Tax Solutions Made Simple Helping Businesses Manage Their Sale Tax Matters With Confidence