Compare taxes and see how much you save moving from Wyoming to Texas
Wyoming and Texas are both zero-income-tax states beloved by tax-conscious Americans — but Wyoming is dramatically cheaper on combined taxes. Wyoming's 4% state sales tax (combined ~5.44%) is far below Texas's 6.25% (combined ~8.2%), and Wyoming's effective property tax rate of approximately 0.57% is roughly one-third of Texas's 1.63%. On a $400,000 home, Texas property taxes run approximately $6,520/year vs Wyoming's $2,280/year — a difference of $4,240/year. On $40,000 annual spending, Texas sales tax costs approximately $3,280 vs Wyoming's $2,176 — another $1,100 difference. Combined, Wyoming saves a typical homeowner approximately $5,000–6,500/year in total state and local taxes versus Texas. The trade-off: Texas has a massive, diversified economy (Houston, Dallas, Austin, San Antonio) with world-class career opportunities; Wyoming is a state of 580,000 people with limited employment outside energy and agriculture.
No Income Tax
4% state sales tax; very low property tax ~0.57%; mineral severance revenues fund government
No Income Tax
6.25% state sales tax; high property tax ~1.63% — one of the highest nationally
At $100,000 income:
That is $458/month back in your pocket!
| Income | WY Tax | TX Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $0 income tax; ~$1,140 property (median $200K × 0.57%); ~$1,088 sales = ~$2,228 total | $0 income tax; ~$3,260 property (median $200K × 1.63%); ~$1,640 sales = ~$4,900 total | WY saves ~$2,672 | $26,720 |
| $75,000 | $0 income tax; ~$1,710 property (median $300K × 0.57%); ~$1,632 sales = ~$3,342 total | $0 income tax; ~$4,890 property (median $300K × 1.63%); ~$2,460 sales = ~$7,350 total | WY saves ~$4,008 | $40,080 |
| $100,000 | $0 income tax; ~$2,280 property (median $400K × 0.57%); ~$2,176 sales = ~$4,456 total | $0 income tax; ~$6,520 property (median $400K × 1.63%); ~$3,280 sales = ~$9,800 total | WY saves ~$5,344 | $53,440 |
| $150,000 | $0 income tax; ~$2,850 property ($500K × 0.57%); ~$3,264 sales = ~$6,114 total | $0 income tax; ~$8,150 property ($500K × 1.63%); ~$4,920 sales = ~$13,070 total | WY saves ~$6,956 | $69,560 |
| $200,000 | $0 income tax; ~$3,990 property ($700K × 0.57%); ~$4,352 sales = ~$8,342 total | $0 income tax; ~$11,410 property ($700K × 1.63%); ~$6,560 sales = ~$17,970 total | WY saves ~$9,628 | $96,280 |
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Get Matched With a CPA →Yes, significantly so for homeowners. Wyoming's combined property + sales tax burden is dramatically lower than Texas's. On a $400,000 home with $40,000 annual spending: Wyoming total state/local taxes approximately $4,500–5,500/year; Texas approximately $9,800–10,500/year — a difference of $4,500–6,000/year. Over 10 years, that is $45,000–60,000. Both have zero income tax, so Wyoming's advantage grows as home values increase. Wyoming's property tax advantage alone (0.57% vs 1.63%) saves a $600,000 home buyer approximately $6,360/year.
Texas has no income tax and no corporate income tax — so property taxes are the primary mechanism to fund schools, infrastructure, and local services. Texas school districts, cities, counties, and special districts all levy separate property taxes that stack together. The average combined rate of ~1.63% is among the highest nationally. Texas has taken steps to reduce the burden: the 2023 property tax relief package (HB 2 and SB 2) increased the homestead exemption for school districts from $40,000 to $100,000, and froze school district property taxes for homeowners 65+. Despite these changes, Texas remains a high-property-tax state by any comparison.
Wyoming LLCs are popular for asset protection and privacy (Wyoming has strong LLC laws) but they don't reduce your personal income tax if you're a Texas resident. Texas has no state income tax, so the 'tax savings' rationale often cited for Wyoming LLCs applies more to residents of high-tax states (California, New York). What Wyoming LLCs do provide: strong charging order protection, no state fees on LLC operating agreements, and privacy (Wyoming doesn't require disclosure of members). If your business operates in Texas, Wyoming registrations may also require Texas foreign registration, which adds costs. Consult a CPA before structuring for Wyoming LLC benefits.
For genuinely remote workers, Wyoming is worth serious consideration. The total state/local tax savings of $4,000–6,000+/year is real and consistent. Jackson Hole, Laramie, Cheyenne, and Sheridan all have established communities. Cost of living outside Jackson Hole is significantly below Texas's major metros. The challenges: Wyoming's isolation (no major airports with direct flights to most destinations from smaller cities), limited healthcare infrastructure, and severe winters. For single remote workers or couples without school-age children, Wyoming's combination of zero income tax, low property tax, low sales tax, and dramatic natural beauty is compelling. For families needing quality schools and healthcare, Texas's major metros have more infrastructure.
Neither state taxes any retirement income. Both have zero state income tax — meaning Social Security benefits, pension payments, IRA and 401(k) distributions, and investment income are completely untaxed at the state level in both Wyoming and Texas. Federal income tax still applies to most retirement income. For retirees, the financial comparison comes down to property taxes (Wyoming wins decisively), sales taxes (Wyoming wins), and total cost of living. Wyoming's much lower property and sales taxes make it a stronger financial choice for retirees on fixed incomes who own their home. Texas's climate and healthcare infrastructure make it preferable for many retirees seeking services and warmth.