Wyoming State Income Tax Guide (2026)

Wyoming does not levy a state income tax on wages. This means your employer doesn't withhold state income tax from your paycheck. You still pay federal income tax, Social Security tax (6.2% up to the wage base), and Medicare tax (1.45% on all income, plus 0.9% for high earners).

While Wyoming doesn't tax wages, the state may still collect revenue through other taxes like sales tax, property tax, or business taxes. These don't directly reduce your paycheck but can affect your overall cost of living.

Since Wyoming doesn't have a state income tax, bonuses are only subject to federal income tax, Social Security, and Medicare. The withholding on bonuses may appear high, but this is due to federal withholding methods, not state tax.

Since Wyoming doesn't have a state income tax, RSUs are only subject to federal income tax, Social Security, and Medicare at the state level. However, you still pay federal tax on the full value of vested RSUs.

Several situations can cause unexpected changes in your take-home pay in Wyoming:

• Mid-year raises: A raise mid-year can push you into a higher federal tax bracket, increasing your effective tax rate for the remainder of the year. This means more tax is withheld from each paycheck.
• Multiple jobs: If you work multiple jobs, each employer withholds as if that job is your only income. This can result in under-withholding, especially if you're in Wyoming and federal tax brackets are progressive.
• Overtime: Overtime pay is taxed at the same rate as regular pay, but higher gross pay means more tax withheld. The additional withholding may make it seem like overtime is taxed more heavily, but it's just more income being taxed at your regular rate.

Since Wyoming doesn't have a state income tax, your take-home pay is only reduced by federal taxes, Social Security, and Medicare. This means you keep more of your gross pay compared to states with income tax.

For example, if you earn $100,000 in Wyoming, you'll pay approximately $15,000-$20,000 in federal income tax (depending on filing status and deductions), plus $7,650 in FICA taxes. Your take-home pay would be around $72,000-$77,000, before any pre-tax deductions like 401(k) contributions.

However, Wyoming may have higher sales tax or property tax rates to compensate for the lack of income tax. Consider the total tax burden when comparing states, not just income tax.