Calculate your tax advantages with Wyoming's zero state income tax and compare savings with other states for optimal tax planning in the Equality State
Wyoming is one of only nine states with no personal income tax, making it an ideal location for maximizing your after-tax income. The Equality State offers significant tax savings compared to high-tax states.
Wyoming levies no tax on personal income, including wages, salaries, investment income, and retirement distributions.
Wyoming has one of the lowest effective property tax rates in the nation, averaging just 0.62% of assessed value.
State sales tax rate of 4% with local taxes bringing the average combined rate to approximately 5.36%.
While Wyoming has fuel taxes, the overall tax burden remains low due to the absence of income tax.
| State | Income Tax Rate | Sales Tax Rate | Key Advantage |
|---|---|---|---|
| Wyoming | 0% | 4% (avg 5.36%) | Energy industry, low property tax |
| Texas | 0% | 6.25% (avg 8.2%) | No personal income tax, business-friendly |
| Florida | 0% | 6% (avg 7.02%) | No income tax, tourism revenue |
| Nevada | 0% | 6.85% (avg 8.23%) | Gaming revenue, no inheritance tax |
| Alaska | 0% | 0% (avg 1.76%) | Oil revenue, Permanent Fund Dividend |
Wyoming's zero income tax policy benefits all income levels, but the advantages become more pronounced at higher income levels:
Save $500-$2,000 annually compared to states with income taxes. More money available for housing, education, and savings.
Annual savings of $2,500-$8,000 compared to high-tax states. Significant impact on family budgets and retirement savings.
Save $10,000-$20,000+ annually. Substantial advantages for business owners, professionals, and retirees.
Wyoming offers an exceptionally business-friendly tax environment:
Wyoming is particularly attractive for retirees:
Consider these real-world tax comparisons for a family earning $100,000:
| State | State Income Tax | Total Tax Burden | Annual Savings vs. Wyoming |
|---|---|---|---|
| Wyoming | $0 | ~$12,000 (federal only) | Baseline |
| California | ~$4,500 | ~$16,500 | Save $4,500 |
| New York | ~$4,200 | ~$16,200 | Save $4,200 |
| Oregon | ~$7,500 | ~$19,500 | Save $7,500 |
While Wyoming offers excellent tax advantages, consider the complete picture including cost of living, employment opportunities, climate, and lifestyle factors when making relocation decisions. Consult a tax professional for comprehensive planning.
Our Wyoming tax calculator provides comprehensive analysis of your tax advantages:
Maximize your Wyoming tax advantages with these strategies:
Wyoming's zero income tax provides unique opportunities for tax optimization. Consider timing major financial events like business sales, retirement distributions, or investment realizations to maximize the no-tax advantage.
Yes, Wyoming levies no personal income tax on wages, salaries, investment income, retirement distributions, or any other form of personal income. This makes Wyoming one of the most tax-friendly states in the United States for individual taxpayers.
Tax savings depend on your income level and the state you're comparing to. High earners can save $10,000-$20,000+ annually compared to high-tax states like California or New York. Our calculator provides personalized estimates based on your specific situation.
Wyoming has a 4% state sales tax, property taxes averaging 0.62% of assessed value, and various excise taxes on fuel, cigarettes, and alcohol. However, the overall tax burden remains very low due to the absence of income tax.
Excellent. Wyoming doesn't tax Social Security benefits, pension income, 401(k) distributions, or IRA withdrawals. Combined with low property taxes and no estate tax, Wyoming is one of the most retirement-friendly states for tax purposes.