Wyoming No Income Tax 2026: Full State Tax Breakdown

Wyoming is one of nine US states with no personal income tax, and it has never enacted one. Article 15, Section 18 of the Wyoming Constitution does not ban an income tax outright, but it requires that any income tax allow full credit for sales, use and property taxes paid in Wyoming, which makes one hard to adopt in practice. The legislature has never passed one.

What makes Wyoming's tax situation distinctive is the Mineral Trust Fund. Mineral severance-tax revenue is deposited in the Permanent Wyoming Mineral Trust Fund. The fund's earnings subsidise state government, reducing the need for broad-based taxes on residents. Wyoming has no income tax, no estate tax, no capital gains tax, and no corporate income tax — making it one of the most tax-friendly states in the country by almost any measure.

Wyoming vs High-Income-Tax States: What You Actually Save

The income tax saving from Wyoming residency depends entirely on what state you are comparing against. Wyoming has no state income tax at all — $0 regardless of income level. Here is what that means at common income levels (single filer, wages only, 2026, standard deduction, state income tax only):

• $75,000 income: Save $2,592 vs Colorado, $5,055 vs Oregon, $2,665 vs California
• $100,000 income: Save $3,692 vs Colorado, $7,148 vs Oregon, $4,911 vs California
• $150,000 income: Save $5,892 vs Colorado, $12,805 vs Oregon, $9,561 vs California
• $500,000 income: Save $21,292 vs Colorado, $47,455 vs Oregon, $43,700 vs California

Unlike Nevada or Texas — which are large states with major metros — Wyoming is a low-population state with limited urban amenities. The tax saving is real, but the lifestyle tradeoff is significant for those accustomed to large-city infrastructure.

What Taxes Wyoming Residents Actually Pay

Sales Tax: Wyoming levies a 4% state sales tax. Counties can add local option taxes of 0-3%, so combined rates vary by county. Food for home consumption is exempt from the state sales tax.

Property Tax: Most Wyoming property is assessed at 9.5% of market value (100% for minerals, 11.5% for industrial property), then the mill levy set by local governments is applied to the assessed value. Residential assessment has been subject to recent changes (2024 Amendment A), so check your county assessor for the current rate, exemptions and mill levy.

Federal Taxes: Wyoming residents pay the same federal income tax as all Americans — 10% to 37% marginal brackets with standard deductions. Because there is no state income tax deduction to claim, the SALT deduction cap ($40,400 for 2026) primarily affects property tax deductibility for Wyoming residents who itemise.

Wyoming for Trusts, LLCs, and Asset Protection

Wyoming is a popular trust and LLC domicile state in the US, known for its LLC and asset-protection statutes.

Wyoming LLCs: Wyoming invented the LLC in 1977 (it was the first US state to create the LLC structure). Wyoming LLCs have strong charging order protections — creditors of an LLC member cannot seize the member's interest, only attach a charging order against distributions. Wyoming also allows single-member LLCs with the same protections and permits perpetual duration with no mandatory dissolution requirements.

Dynasty Trusts: Wyoming law permits long-duration 'dynasty' trusts for multi-generational wealth preservation; the exact duration limit under the perpetuities statute should be confirmed with a Wyoming trust attorney. There is no state income tax on trust income accumulated in a Wyoming trust for out-of-state beneficiaries, making Wyoming competitive with South Dakota and Nevada for trust domicile decisions.

Domestic Asset Protection Trusts (DAPTs): Wyoming enacted DAPT legislation allowing self-settled spendthrift trusts — you can contribute assets to a trust that benefits you and potentially protect them from future creditors subject to statutory limits and exceptions. Wyoming's DAPT statute is considered strong, though South Dakota and Nevada are sometimes preferred for their longer track records.

Wyoming for Retirees: Pension, Social Security, and Investment Income

Wyoming is an exceptionally tax-friendly retirement destination. With no income tax, retirees pay $0 state tax on:

• Social Security benefits (all exempt at state level)
• 401(k), IRA, and pension distributions
• Investment income — dividends, interest, capital gains
• Part-time income or consulting revenue

A retiree drawing $80,000/year from a pension plus Social Security would pay no Wyoming state income tax, whereas states that tax pension income would collect tax depending on their exclusions and the retiree's age. Wyoming also has a 4% state sales tax with food exempt.

The main considerations for retirees: Wyoming has a smaller healthcare infrastructure than larger states, severe winter weather across most of the state (Cheyenne, Casper), and limited public transportation. Jackson Hole (Teton County) offers more amenities but is one of the most expensive real estate markets in the country.