Wyoming State Income Tax in 2025: A Guide

Wyoming is one of several states with no state income tax, making it a tax-friendly location for residents and businesses. Adding to this advantage, there’s no Wyoming corporate income tax, further reducing the tax burden for businesses. That said, Wyoming residents may still have to pay federal income tax and must account for other state-level taxes, including property and sales taxes. 

In this guide, we’ll walk you through Wyoming’s tax situation, including how property and sales taxes are collected in the state. 

*Note that even though Wyoming has no state income tax, you are still responsible for federal taxes if you meet the IRS income filing threshold. This article addresses state-specific taxes only. 

Specific income tax considerations in Wyoming

There is no Wyoming state income tax on wages, military pay, investment earnings, or any retirement and pension income, including Social Security benefits and military retirement. This can be a significant financial advantage for retirees, investors, and active or retired military members, allowing them to keep more of their income.

Wyoming also does not impose an inheritance or estate tax

It’s important to remember that federal income tax still applies to most of the above earnings. For instance, general income, retirement income from pensions or 401(k)s, or income from certain investment gains may be federally taxable. Further, if you live in Wyoming but earn income in another state that does levy income tax, you may need to file a nonresident return for that state, in addition to your federal taxes. 

Other types of common taxes in Wyoming

While there isn’t a Wyoming state income tax, residents are subject to other taxes, like property and sales taxes.

Property tax

Wyoming’s residential and commercial property tax rates are assessed at the county level and vary depending on the property’s value and local tax rates. The state’s Property Tax Division monitors this process and assists by implementing a computer-assisted mass appraisal system (CAMA) for all 23 counties. The state average is 0.55%, which makes it the 12th lowest property tax rate in the U.S.

Sales tax

Wyoming levies a sales tax of 4% statewide, with counties and other municipalities imposing additional sales taxes, bringing the combined total to an average of 5.56%. Wyoming’s varying levels of sales taxes apply to most goods and services sold within the state. The state also charges a 24 cent per gallon gas tax.

How to file income tax in Wyoming

Wyoming has no state income tax, so no need to file a Wyoming state return. However you may still need to file a federal tax return if you meet the IRS income filing threshold. And you’ll have to consider other taxes, like property and sales taxes.  

TurboTax simplifies the tax filing process by helping you understand how Wyoming-specific rules impact your situation. Whether you’re managing deductions or preparing your federal return, TurboTax has your back.  

You can file on your own with confidence or work with one of our local tax experts in Wyoming who can guide you every step of the way or even file for you. 

No matter how you do your taxes, TurboTax is here to help you maximize your refund and take the stress out of tax season.