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Wyoming State Income Tax Withholding

Last Updated: January 2026

Overview

Wyoming has no state income tax, and this protection has been enshrined in the state constitution since 1974. Wyoming is one of the most tax-friendly states in the nation for individuals.

Tax Status

Tax Type Status
State Income Tax None (Constitutionally Protected)
Withholding Required No

Constitutional Protection

Wyoming's constitution has prohibited a state income tax since 1974:

> "No income tax shall be imposed upon the residents of this state." > — Wyoming Constitution, Article 15, Section 18

This constitutional protection means:

  • The legislature cannot impose an income tax without a constitutional amendment
  • Any amendment would require voter approval
  • Wyoming has maintained its income tax-free status for over 50 years

No Withholding Required

Employers with employees working in Wyoming:

  • Do NOT withhold state income tax
  • Do NOT file state withholding returns
  • Do NOT need state withholding accounts

Special Considerations

  • Federal Withholding: Federal income tax withholding still applies to all employees
  • FICA Taxes: Social Security and Medicare taxes still apply
  • Unemployment Insurance: Wyoming requires employer unemployment insurance contributions
  • Workers' Compensation: Wyoming has a state workers' compensation fund

Local Taxes

  • No Local Income Taxes: Wyoming municipalities cannot levy local income taxes
  • Property Taxes: Wyoming has relatively low property taxes
  • Sales Tax: Wyoming has a 4% state sales tax (plus up to 2% local)

Multi-State Employees

If employees work in multiple states:

  • No Wyoming withholding is required for work performed in Wyoming
  • Employees may still owe income tax to their state of residence
  • Follow the resident state's withholding rules for days worked in Wyoming

Business-Friendly Environment

Wyoming's no-income-tax status is part of a broader business-friendly environment:

  • No corporate income tax
  • No gross receipts tax
  • No franchise tax
  • No inventory tax

States With No Income Tax

Wyoming is one of nine states with no individual income tax:

  1. Alaska
  2. Florida
  3. Nevada
  4. New Hampshire (fully tax-free as of 2025)
  5. South Dakota
  6. Tennessee
  7. Texas
  8. Washington (no wage tax; has capital gains tax)
  9. Wyoming

Employer Benefits

Wyoming's constitutional protection provides certainty for employers:

  • No risk of future state income tax implementation without voter approval
  • Simplified payroll processing
  • Attractive benefit for employee recruitment
  • Stable, predictable tax environment

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