Wyoming State Income Tax Overview

Wyoming is one of a small number of states that does not impose a personal income tax on residents. If you live or work in Wyoming, you do not file a Wyoming state income tax return, and there is no Wyoming equivalent to a Form 1040.

That said, no state income tax does not mean no taxes. Wyoming funds state and local government through other taxes, including sales taxes, property taxes, and taxes tied to natural resources and business activity. Understanding how Wyoming collects revenue, and how that compares to other states, is important whether you are moving to Wyoming, already living in the state, or considering relocating elsewhere.

This page explains how Wyoming's tax system works, what taxes residents do and do not pay, and how Wyoming compares to other states from a tax perspective.

Does Wyoming Have a State Income Tax?

No. Wyoming does not have a state-level personal income tax.

Residents of Wyoming do not pay state income tax on wages, salaries, self-employment income, retirement income, or investment income. There is also no Wyoming state income tax return to file and no state income tax withholding taken from paychecks.

This is not a temporary credit or a special deduction that changes year to year. Wyoming simply does not levy a personal income tax, and it has remained a no-income-tax state for decades.

It is important to note that this applies only to state income taxes. Wyoming residents are still required to file and pay federal income taxes with the IRS, just like residents of every other state.

How Wyoming Raises Revenue

Wyoming's lack of a personal income tax does not mean the state operates without revenue. Instead of taxing wages and salaries, Wyoming relies more heavily on consumption-based taxes, property taxes, and revenue tied to natural resources to fund state and local government.

Understanding this trade-off is important, especially for people moving to Wyoming from high–income-tax states.

Sales and Use Taxes

Wyoming collects significant revenue through sales and use taxes.

• Wyoming has a statewide sales tax, and local jurisdictions can add additional taxes.
• Total sales tax rates can vary by city and county.
• Sales tax applies broadly, meaning residents tend to pay more tax when they spend, rather than when they earn.

For households that spend a large portion of their income, this can offset some of the benefits of having no income tax.

Property Taxes

Property taxes in Wyoming are imposed at the local level, not by the state directly.

• Rates vary by county and local taxing districts.
• Property taxes help fund local services such as schools, public safety, and community infrastructure.
• For homeowners, property taxes are often the most noticeable ongoing tax cost.

For homeowners, especially retirees and long-term residents, property tax planning matters.

Corporate and Business Taxes

While individuals are not subject to state income tax, Wyoming still collects revenue from businesses through other taxes and fees.

• Wyoming does not impose a traditional corporate income tax.
• Businesses may still pay sales and use taxes, property taxes, and industry-specific taxes and fees.
• Some sectors may be subject to severance-related taxes and similar assessments tied to production and extraction.

This distinction is important for entrepreneurs comparing Wyoming to other low-tax states.

Other State and Local Taxes

Wyoming also collects revenue through:

• Fuel taxes
• Alcohol and tobacco taxes
• Severance taxes and mineral-related revenue
• Various state and local fees and assessments

Natural resource activity plays a major role in Wyoming's revenue structure, which can help reduce reliance on taxes directly tied to personal income.

How long do you have to live in Wyoming to avoid taxes?

Residency for tax purposes is demonstrated by whether or not an individual has taken steps to move into Wyoming, and, sever residency in a previous state or country. You may still need to file a full-year, part-year, or non-resident income tax return in your current state for the year you move to Wyoming.

If you are considering moving to Wyoming, remember that personal income taxes are just part of the overall tax burden. In the state of Wyoming, however, the overall cost of living is relatively low compared to other high tax states such as California, New Jersey, and New York.

Bottom line: Wyoming taxes spending, property, and business activity rather than personal income. For many residents, especially high earners and retirees, this structure can be advantageous, but it is not tax-free living.

Last updated: January 17, 2026

State Tax Forms