Wyoming has no state income tax - one of nine states where residents pay $0 in state income tax on wages, salaries, and all investment income. Wyoming funds state government primarily through sales tax, property tax, and revenue from mineral extraction (oil, natural gas, and coal).
State Income Tax
None (0%)
Wyoming Has No State Income Tax
Wyoming is one of nine states with no individual income tax. All wages, salaries, tips, overtime, bonuses, investment income, and retirement distributions are free from Wyoming state income tax. Wyoming's prohibition on personal income tax is a long-standing feature of the state's fiscal structure, not a policy subject to annual change. Wyoming relies instead on sales tax, property tax on residential and commercial property, and a substantial share of revenue from mineral extraction - severance taxes on coal, oil, and natural gas production, plus federal mineral royalties allocated back to the state.
OBBBA Tips and Overtime in Wyoming
The One Big Beautiful Bill Act (OBBBA) introduced federal deductions for qualified tip income, overtime pay, and senior income. Since Wyoming has no state income tax, these deductions reduce only your federal tax liability. Wyoming workers already pay $0 in Wyoming state tax on all earned income, including tips and overtime - there is no state tax to further reduce.
No. Wyoming has no state individual income tax. Wyoming is one of nine states with no income tax on wages, salaries, tips, bonuses, or investment income. Wyoming's constitution prohibits a personal income tax. The state funds government primarily through sales tax, property tax, and revenue from mineral extraction (oil, natural gas, and coal). Residents pay $0 in Wyoming state income tax on all income types.
Does Wyoming have a sales tax?
Wyoming does have a state sales tax. The confirmed rate is pending verification - check the Wyoming Department of Revenue for current figures. Wyoming's sales tax is a major revenue source given the absence of a state income tax.
Does Wyoming tax groceries?
Wyoming's grocery tax treatment is pending verification. The state's Department of Revenue sales and use tax guidance should be consulted for the current position on food items.
What are Wyoming's property taxes?
Wyoming property tax rates are pending verification. The Wyoming Department of Revenue administers property tax assessment rules statewide, with actual levies set by county assessors.
Does the OBBBA tips and overtime deduction apply in Wyoming?
The One Big Beautiful Bill Act (OBBBA) introduced federal deductions for tips, overtime pay, and senior income. Since Wyoming has no state income tax, these deductions only affect your federal tax liability - there is no Wyoming state income tax to reduce. Wyoming workers with qualifying tip income or overtime pay benefit from the federal deduction but owe $0 in Wyoming state tax regardless.
Does Wyoming tax retirement income?
No. Wyoming has no state income tax, which means all retirement income - including Social Security benefits, pensions, 401(k) distributions, 403(b) distributions, and IRA withdrawals - is entirely free from Wyoming state taxation. Wyoming consistently ranks among the most tax-friendly states for retirees due to the complete absence of income taxation.
How does Wyoming fund state government without an income tax?
Wyoming funds state government through three primary revenue streams: (1) Sales tax - the state rate plus local additions generate significant consumer tax revenue; (2) Property tax - residential, commercial, and especially mineral property generates substantial assessed-value tax revenue; and (3) Mineral extraction revenue - Wyoming is one of the nation's top producers of coal, natural gas, and oil. Severance taxes and federal mineral royalties shared with the state provide a major funding source not available to most other states.
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