Wyoming State Income Tax Rates and Brackets for 2026 Explained

Wyoming will enter 2026 the way it has for decades: with no state income tax, a 0% rate, and no brackets to calculate. For immigrants, visa holders, and employers deciding where to settle in the United States, the state’s continued ban on taxing income is a concrete part of the cost-of-living math—especially as federal rules change in the same tax year.

The no-tax stance is not a short-term policy choice. It is embedded in the Wyoming Constitution, Article 15, Section 18, which prohibits any tax on incomes. The ban applies to personal earnings and to corporate profits, and the most recent figures cited in state tax summaries show $0 collected from income taxes in FY24, with a base rate of 0% carried into FY25.

What the constitutional ban means for newcomers

That constitutional backstop matters for newcomers who worry that today’s “friendly” tax climate could flip after they buy a home, sign a lease, or move a business. Multiple tax references and legislative projections reviewed for 2026 show no plan to create an income tax, meaning:

• No pending bracket schedule
• No withholding table
• No state return to file based on wages alone

For example, an H-1B worker relocated to a Cheyenne office, a TN nurse in Casper, or a refugee family starting over in Gillette will generally see Wyoming’s role in payroll limited to items like unemployment insurance and local assessments—not a slice of each paycheck labeled “state income tax.”

Federal taxes still apply — and are changing in 2026

Wyoming’s tax simplicity on income does not mean 2026 will be simple on taxes overall. Most residents—including many immigrants who are resident aliens for federal tax purposes—will still face federal income tax rules that change with inflation and with major provisions of the 2017 Tax Cuts and Jobs Act (TCJA) set to expire.

Key federal expectations for the 2026 tax year:

• Federal brackets expected to remain at seven rates: 10%, 12%, 22%, 24%, 32%, 35%, 37% (income ranges adjusted for inflation)
• Analysts expect the standard deduction to shrink after TCJA provisions sunset, which can raise taxable income for many households even if wages stay flat

This dynamic can surprise people who move to Wyoming for a 0% state income tax and then see their overall tax bill rise anyway. Employers hiring internationally need to explain that “no state income tax” ≠ “no federal tax changes.”

Important: Wyoming cannot “conform” to federal changes the way a state with an income tax can, because there is no state tax code built around federal definitions of income.

One result of that is federal-only tools—such as the Qualified Business Income (QBI) deduction for many pass-through businesses—remain purely federal. A new immigrant entrepreneur running an LLC in Jackson may benefit from the federal QBI deduction if eligible, but there is no parallel Wyoming calculation because there is no Wyoming income tax return.

Payroll and withholding practicalities

In practical terms, 2026 payroll planning for immigrants and their employers in Wyoming will still revolve around federal withholding and documentation:

• Workers will use the IRS withholding system and update Form W-4 when they:
  1. Start a job
  2. Add a second job
  3. Marry
  4. Have a child
• The official IRS form and instructions are available at: IRS Form W-4

Many recent arrivals confuse withholding with final tax owed; a larger refund can simply mean too much was withheld. The IRS posts guidance on federal tax rates and filing basics online for 2026 returns.

Other Wyoming taxes and cost considerations

Wyoming’s other taxes can still be significant for families choosing between states.

• Statewide sales tax rate: 4%
• Local/county sales tax: up to 4%
• Combined sales tax: as high as 8%, depending on location

For many low- and middle-income households—including newly arrived families—sales taxes can feel heavier than income taxes because they are paid everyday on groceries, school supplies, and clothing. Other cost factors include:

• Housing costs
• Commuting distances
• Health insurance

These can outweigh the benefit of a 0% state income tax, especially for workers who still must pay federal taxes.

State budget outlook and practical advice

State budget notes and tax forecasts for 2025 and beyond continue to list the income tax line at zero, reinforcing that the 2026 outlook is steady. For newcomers comparing destinations, that reduces anxiety about surprise state bills or filing traps.

Tax advisers still urge migrants to:

• Watch federal deadlines
• Keep Social Security numbers (SSNs) and ITIN records current
• Seek advice on federal tax changes and what they mean for household finances

Businesses, corporate tax, and employer obligations

The absence of a corporate income tax is another draw for companies deciding where to place jobs, including roles that may be filled through employment-based visas.

• Wyoming’s constitution-driven 0% corporate income tax can make it cheaper to base a business in the state.
• This does not erase:
  • Federal corporate taxes
  • Federal payroll obligations
  • Immigration compliance duties

Employers sponsoring foreign workers must still:

• Meet wage and notice rules for the visa category
• Keep accurate I-9 employment eligibility records
• Follow federal rules on benefits and overtime

According to analysis by VisaVerge.com, places with no state income tax often attract mobile professionals—but those moves work best when workers compare total costs, not just tax headlines.

Multi-state work and residency considerations

For immigrants who split time between states—such as a consultant living part-year in Wyoming while working in Colorado or California—the 0% Wyoming state income tax does not automatically end other states’ tax claims.

• Many states tax income earned within their borders
• Some states have residency tests that consider:
  • Days spent in the state
  • Housing
  • “Domicile” (your true home)

People who move late in the year should keep good records of:

• Move dates
• Leases
• Work locations

A different state may still require a part-year return.

Bottom line: Wyoming’s message for 2026 is straightforward—the state will not tax your income—but your federal filing, sales and local taxes, and cross-state work choices will still shape what you actually pay.