How Wyoming income tax works
Wyoming does not levy a state individual income tax. Wages, salaries, investment income and retirement income are all free of state-level income tax here.
That means your state take-home pay equals your gross pay, before federal tax and FICA. It is one of the main reasons people compare WY with higher-tax states.
Wyoming has no state individual income tax.
What you still pay in Wyoming
No income tax does not mean no taxes. Wyoming still funds services through other channels.
Sales tax runs about 5.36% combined, and the average effective property tax rate is around 0.55%.
Federal income tax and payroll taxes (Social Security and Medicare) still apply to your earnings regardless of the state you live in.
Is Wyoming actually cheaper?
For high earners, skipping a state income tax can mean keeping thousands more each year. For others, higher sales or property taxes can offset some of the benefit.
Compare total tax burden, not just income tax, when weighing a move. Use the sales and property tax tools for Wyoming to build the full picture.
Frequently asked questions
Does Wyoming have a state income tax?
No. Wyoming is one of the states with no individual income tax on wages or other income.
What taxes do I pay in Wyoming?
You still pay federal income tax and payroll taxes, plus state and local sales tax (around 5.36% combined) and property tax (about 0.55% effective).
Is income from investments taxed in Wyoming?
Wyoming has no state income tax, so capital gains are not taxed at the state level.
How accurate is this calculator?
It reflects that Wyoming has no state income tax. Federal tax still applies. Confirm details with the Wyoming Department of Revenue (revenue.wyo.gov).