Wyoming has no state income tax. Your only income tax obligations are federal brackets. Calculate your exact marginal and effective federal tax rate below. Formula shown, sources cited — no account required.
Wyoming has no individual income tax, no corporate income tax, and no capital gains tax at the state level. Residents pay only federal income taxes and payroll deductions, with no state return to file. For a household at the state median income of $75,532, the federal effective rate typically runs around 13–15%, representing the full state-level tax savings compared to states that add 4–8% on top. Wyoming funds its government primarily through mineral severance taxes on coal, oil, and natural gas, supplemented by property taxes and a modest 5.56% sales tax. That revenue model has worked well during commodity booms but creates budget volatility when energy prices drop. The state has been managing a sovereign wealth fund — the Permanent Wyoming Mineral Trust Fund — to buffer against those cycles. Investors and business owners in Wyoming benefit particularly because investment income, dividends, and business profits face no state levy. Use a federal tax bracket calculator to identify your marginal rate and see exactly where strategic retirement contributions or tax-loss harvesting can reduce your federal exposure.
Wyoming Tax Brackets Explained: No State Tax, Federal Only
Wyoming is one of the nine US states with no state income tax. Residents only pay federal income tax and FICA payroll taxes. This makes Wyoming attractive for high earners — a $200,000 income that would face 9–10% state tax in California or New York faces zero additional state burden here.
The median household in Wyoming earns $75,532/year. At that income (single filer), the federal effective rate is approximately 12–14%, bringing total income tax (federal + state) to roughly 12–14%.
How Marginal vs. Effective Rate Works
The marginal rate is the rate on your last dollar of income — it does not apply to all income. The effective rate is your total tax divided by total income. For example, someone earning $100,000 in Wyoming has a 22% federal marginal rate but an effective federal rate of roughly 15%, because the first $44,725 (2024) is taxed at 10% and 12%, not 22%.