Does Wyoming have a state income tax? No. Here is what Wyoming taxes instead

No. The Legislative Service Office lists Wyoming’s individual and corporate income tax rates at 0%, with no collections, and the Department of Revenue does not administer an income tax. Wyoming residents file only a federal return, and wages, pensions, Social Security, investment income and business profits face no Wyoming income tax.

No bill in the 2025 or 2026 sessions proposed an income tax, and the November 3, 2026 ballot has no income tax question.

Unlike Texas or Nevada, Wyoming’s constitution does not ban an income tax. Article 15, Section 18 says any income tax would have to allow a full credit for the sales, use and property taxes a taxpayer pays. State law (W.S. 39-12-101) reserves income taxes to the state, so counties and cities cannot levy one, and the old income tax chapter of the tax code was repealed in 1998.

The state sales tax is 4%. Counties can add up to 3% in total and cities up to 1%, and two resort districts can add up to 3%. Combined rates for 2025 and 2026 run from 4% in Park and Sublette counties to 7% in Teton County, and reach 9% in the Teton Village and Grand Targhee resort districts. From January 1, 2027, Laramie and Crook counties rise to 6% and Fremont to 5.75%.

Most groceries are exempt; restaurant and prepared food, alcohol and tobacco are taxed. Use tax at the same rate applies to items bought out of state for use in Wyoming, and lodging carries an extra 5% statewide plus up to 2% local.

Homes are assessed at 9.5% of fair market value, and county and local levies apply to that assessed value. Recent laws add several kinds of relief for homeowners.

Initiative Proposition 1 would exempt 50% of the assessed value of a primary residence for homeowners with at least a year of Wyoming residency. As a citizen initiative it passes only if more than 50% of everyone voting in the general election votes yes, and if it passes the earliest tax year it could apply to is 2027. Results were not final when this page was written.

Wyoming LLCs and corporations pay an annual report license tax of $60 or $0.0002 per dollar of assets located and employed in Wyoming, whichever is greater; an entity with $300,000 or less of Wyoming assets pays $60. Every entity needs a registered agent at a physical Wyoming street address. There is no Wyoming income tax on LLC profits, and forming a Wyoming LLC does not by itself require a sales tax license.

Federal tax still applies in full. A single-member LLC is disregarded for income tax, so the owner pays federal income tax and 15.3% self-employment tax on the profit. A single-member LLC owned by a foreign person must file a pro forma Form 1120 with Form 5472 each year, and the IRS penalty for missing it is $25,000. And a Wyoming LLC does not move income out of the state where the work is done: California, for example, taxes nonresidents on business carried on in California.

With no wage tax, Wyoming employers withhold only federal taxes. They do pay state unemployment insurance tax, which is never deducted from wages, on the first $32,400 of each employee’s pay for 2025, $33,800 for 2026 and $34,900 for 2027. New employers get their industry’s average rate plus adjustment factors, at least 1%. Employers in extra-hazardous industries must carry workers’ compensation through the state fund.

A few other state taxes and fees reach households directly.

Moving to Wyoming ends your old state’s income tax only once you actually change your domicile. California’s Franchise Tax Board says you keep a domicile until you acquire a new one, which takes abandoning the old one, physically moving and intending to stay, and that declaring residency in another state is not enough by itself. Illinois likewise treats your domicile as the place you intend to return to after temporary absences.

In the year you move you usually file a part-year return in the old state. After that, wages are still taxed by the state where you do the work, and rent or gains from property in another state stay taxable there.

Wyoming residents file a federal Form 1040 when their income requires it; for 2025 a single filer under 65 must file with gross income of $15,750 or more. There is no state refund to track, so use the IRS “Where’s My Refund?” tool, which shows a status about 24 hours after you e-file or four weeks after you mail a paper return.