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Wyoming State Taxes: What You’ll Owe in the 2026 Tax Season
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With no income tax and a 4 percent statewide sales tax, Wyoming ranks first overall on the Tax Foundation’s 2026 State Tax Competitiveness Index.
The big picture:
- Income tax: The state has no income tax.
- Property tax: Wyoming had an average property tax rate of 0.53 percent of a home’s assessed value in 2024, the most recent data available from the Tax Foundation. However, actual rates vary by county.
- Sales tax: The average combined state and local sales tax rate is 5.56 percent, according to the Tax Foundation. The state has a 4 percent statewide tax with taxes from local jurisdictions ranging from 0 percent to 3 percent.
How is income taxed?
Wyoming doesn’t tax individual income.
What about investment income?
With no income tax, Wyoming doesn’t tax investment income, including capital gains.
Are Social Security benefits taxed?
Wyoming doesn’t tax income, including Social Security.
How is property taxed?
Wyoming had an average property tax rate of 0.53 percent of a home’s assessed value in 2024, the most recent data available from the Tax Foundation. However, actual rates vary by county, with the lowest being 0.26 percent in Niobrara County, and the highest being 0.72 percent in Washakie County. The actual median property taxes paid ranged from a low of $1,072 in Niobrara County to a high of $7,267 in Teton County.
What about sales and other taxes?
- Sales tax: The state has a 4 percent tax, and taxes from local jurisdictions range from 0 percent to 3 percent. Exemptions include medication and medical devices, food for consumption at home, newspapers and lottery tickets. A full list is available here.
- Gas and diesel: Wyoming taxes gas and diesel at 24 cents per gallon.
- Vehicle tax: In Wyoming, vehicle purchases are taxed at the county level and include state sales tax and the local sales tax rate where the buyer lives. The total rates applied generally vary between 5 percent and 7 percent.
- Alcohol: Consumers pay state and local sales tax on spirits, wine and beer. The state applies a 17.6 percent markup on spirits and wine to fund state operations—costs that are included in the retail price. Wyoming also taxes alcoholic-beverage retailers, and those costs may be passed on to consumers in the retail price.
- Lottery: With no state income tax, no state taxes are due on lottery winnings, although Wyoming automatically withholds 24 percent of any prizes of $5,000 or more for federal taxes. The actual amount due to the IRS could be greater, so winners are expected to research their personal tax obligation.
Will my heirs or estate have to pay inheritance and estate tax?
Wyoming doesn’t have an estate or inheritance tax.
Are there any tax breaks for older residents?
- Long-term homeowners exemption: To qualify, the homeowner or their spouse must be 65 or older. Residents must have paid residential property taxes in Wyoming for 25 years or more, and the owner must live in the primary residence at least eight months a year. The benefit is a 50 percent reduction in the assessed value of a home and up to 35 acres of land. Residents can apply at their local county assessor’s office. The annual deadline to apply is the fourth Monday in May.
- Veterans property tax exemption: To be eligible for this program, residents must be honorably discharged veterans of World War II, the Korean War or the Vietnam War. Alternatively, residents could be honorably discharged and have received the Armed Forces Expeditionary Medal or other authorized service or campaign medal indicating service for the United States in any armed conflict in a foreign country. Surviving spouses of qualifying veterans, certain disabled veterans and Gold Star families may be eligible for the exemption. The exemption provides $6,000 in assessed value relief against the assessed value of a home. To receive the benefit, recipients must be current Wyoming residents who have lived in the state for three years. The annual deadline to apply is the fourth Monday in May.
Are military retirement pensions taxed?
With no state income tax, Wyoming doesn’t tax retirement pensions, though they are still subject to federal taxes.
What is the deadline for filing taxes in 2026?
With no income tax, no filings are due in Wyoming. However, federal taxes were due on April 15, 2026. “If taxpayers requested an extension, they have until Oct. 15 to file their tax returns, but any taxes owed were due by the original April deadline.”
More AARP Financial Resources
- AARP Retirement Calculator Determine if you are saving enough to retire when — and how — you want.
- AARP Social Security Calculator Figure out when to claim and how to maximize your Social Security benefits.
- AARP Tax Tools Explore resources to help you calculate and prepare taxes.
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