Wyoming is one of only nine states with no state income tax. Your paystub will only show federal tax withholdings and FICA taxes, with no state income tax deduction.
No State Income Tax
| Tax Type | Rate |
|---|---|
| State Income Tax | 0% |
| Local Income Tax | 0% |
Wyoming has never had a state income tax. The state funds its government primarily through mineral extraction taxes and sales taxes. Based on Wyoming Department of Revenue guidelines.
What You'll See on Your Paystub
A Wyoming worker's paystub is simpler than most states, showing only federal income tax withholding and FICA:
| Deduction | Rate | Notes |
|---|---|---|
| Federal Income Tax | Varies | Based on W-4 and income |
| Social Security | 6.2% | Up to $181,200 wage base |
| Medicare | 1.45% | No wage limit |
| State Income Tax | None | Wyoming has no state income tax |
With no state income tax, Wyoming workers keep more of their paycheck. A worker earning $75,000 saves roughly $3,000-4,000 annually compared to states with typical income tax rates.
Why No Income Tax?
Wyoming funds its state government through other revenue sources:
- Mineral extraction taxes: Coal, oil, natural gas, and trona mining
- Sales tax: 4% state rate plus local additions
- Property taxes: Relatively low rates
- Tourism revenue: Yellowstone and Grand Teton national parks
The state's small population (under 600,000) and abundant natural resources make this model sustainable.
Energy Sector Workers
Wyoming's economy is heavily tied to energy extraction:
- Coal mining (largest coal-producing state)
- Oil and natural gas extraction
- Wind energy (growing sector)
- Pipeline and refinery operations
Energy Worker Considerations
- Rotational schedules are common (14 days on, 14 days off)
- Per diem and travel allowances may apply
- Remote work sites across the state
- Boom and bust cycles affect employment
Energy sector workers who travel between states should track where work is performed. You may owe taxes to other states for days worked outside Wyoming.
Tourism and Hospitality
Tourism is a major employer, especially around national parks:
- Yellowstone National Park (northwest corner)
- Grand Teton National Park
- Devils Tower National Monument
- Seasonal employment peaks in summer
Seasonal workers should note:
- Wyoming has no state income tax on your earnings
- Tips and gratuities are subject to federal tax only
- Seasonal housing may be provided by employers
Cheyenne Workers
The state capital has diverse employment:
- State government headquarters
- F.E. Warren Air Force Base
- Railroad operations (Union Pacific)
- Growing tech sector
Jackson Hole Area
The Jackson Hole region has unique characteristics:
- High cost of living despite no income tax
- Tourism and ski resort employment
- Wealthy residents and second-home owners
- Finance and family office jobs
Jackson Hole's housing costs can offset the benefit of no state income tax. Many workers commute from Idaho, which does have an income tax.
Remote Workers
Wyoming has become attractive for remote workers:
- No state income tax on remote earnings
- Low population density
- Outdoor recreation access
- Starlink and improving broadband in rural areas
If you're a remote worker considering Wyoming:
- Establish genuine residency (driver's license, voter registration)
- Your employer may need to register in Wyoming
- You'll owe taxes based on where you live, not where your employer is located
Border State Workers
Wyoming borders six states with varying tax situations:
| Border State | Income Tax |
|---|---|
| Montana | Up to 5.9% |
| South Dakota | None |
| Nebraska | Up to 5.84% |
| Colorado | 4.4% |
| Utah | 4.65% |
| Idaho | 5.695% |
Retirement in Wyoming
Wyoming is tax-friendly for retirees:
- No state income tax on any retirement income
- No tax on Social Security benefits
- No tax on pension or 401(k) distributions
- No inheritance or estate tax
Wyoming vs. Neighboring States
| State | Tax Structure | Top Rate |
|---|---|---|
| Wyoming | None | 0% |
| South Dakota | None | 0% |
| Montana | Progressive | 5.9% |
| Colorado | Flat | 4.4% |
| Idaho | Flat | 5.695% |
| Nebraska | Progressive | 5.84% |
Comparing Take-Home Pay
Here's how a $75,000 annual salary compares in the region:
| State | State Tax | Annual Savings vs. Wyoming |
|---|---|---|
| Wyoming | $0 | — |
| Colorado | ~$3,300 | -$3,300 |
| Montana | ~$3,500 | -$3,500 |
| Idaho | ~$3,200 | -$3,200 |
Key Takeaways
- Wyoming has no state income tax—you keep your entire state tax portion
- State revenue comes from mineral extraction and sales taxes
- Energy sector dominates employment, with tourism as secondary
- No local income taxes anywhere in the state
- Attractive for retirees—no tax on any retirement income
- Remote workers can benefit if they establish genuine residency