Wyoming is one of the few states with no state income tax, meaning the tax rate on personal income is 0%.
That means wages, salaries, retirement income, and investment income are not taxed at the state level.
Wyoming Income Tax Brackets
There are no tax brackets because Wyoming does not tax personal income.
- All income levels → 0%
How Wyoming’s Tax System Works
Instead of taxing income, Wyoming generates revenue primarily through sales tax, property tax, and other state revenues.
Example: If you earn $90,000 in Wyoming, you pay $0 in state income tax regardless of filing status, which makes your effective state income tax rate 0%.
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Marginal vs Effective Tax Rate
In most states, these concepts matter—but in Wyoming, they are simple.
- Marginal rate = 0%
- Effective rate = 0%
Example: Whether you earn $40,000 or $400,000, your state income tax rate remains 0%.
What Income Is Taxed in Wyoming
Wyoming does not tax any personal income, including:
- Wages and salaries
- Self-employment income
- Investment income
- Retirement income (including Social Security and pensions)
This makes Wyoming especially attractive for retirees and higher-income earners.
Other Taxes in Wyoming
Even though there is no income tax, residents still pay other types of taxes:
- State sales tax is 4%, with local taxes potentially increasing the total rate
- Property taxes are relatively low compared to national averages
These taxes help fund public services across the state.
Are Wyoming Taxes High?
Compared to other states:
- No income tax is a major advantage
- Sales taxes are relatively low
- Property taxes are also low
Overall, Wyoming is considered one of the most tax-friendly states in the U.S.
Electronic Filing Recommendation 💻
- You do not need to file a Wyoming state income tax return
- Focus on filing your federal return accurately
- Keep records of income and deductions for federal purposes
- Use tax software to ensure compliance with federal tax rules
Summary
Wyoming has no state income tax, meaning residents pay 0% on personal income. This makes it one of the most tax-friendly states, especially for retirees and high earners.
However, the state relies more on sales and property taxes, so your overall tax burden depends on spending and homeownership.
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| Take advantage of this offer and save 10% on TurboTax Electronic Tax Filing! |
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