Overview of Wyoming Taxes
Wyoming is one of seven states that does not have its own income tax. Additionally, no Wyoming cities levy local income taxes. Taxpayers in the state pay federal income taxes.
This calculator reflects the 2018 federal withholding tax changes.
Click here to learn more about how the Trump Tax Plan will affect you.
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- Our Tax Expert
Jennifer Mansfield, CPA Tax
Jennifer Mansfield, CPA, JD/LLM-Tax, is a Certified Public Accountant with more than 30 years of experience providing tax advice. SmartAsset’s tax expert has a degree in Accounting and Business/Management from the University of Wyoming, as well as both a Masters in Tax Laws and a Juris Doctorate from Georgetown University Law Center. Jennifer has mostly worked in public accounting firms, including Ernst & Young and Deloitte. She is passionate about helping provide people and businesses with valuable accounting and tax advice to allow them to prosper financially. Jennifer lives in Arizona and was recently named to the Greater Tucson Leadership Program.
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Wyoming Paycheck Calculator
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Wyoming Paycheck Quick Facts
How Your Wyoming Paycheck Works
If you moved to Wyoming from a state that has its own income tax, you may be pleasantly surprised when you receive your first paycheck. That's because Wyoming is one of seven states with no income tax, which means more of your salary ends up in your pocket. However, that doesn't mean that there are no deductions to your wages. Wyoming workers will still pay FICA and federal income taxes, of course.
FICA (Federal Insurance Contributions Act) taxes are Social Security and Medicare taxes. For Social Security tax, your employer will deduct a flat rate of 6.2% from your paycheck. Employers are responsible for contributing an additional 6.2%, as well. You pay 1.45% of your income for Medicare, and your employer matches that so the total contribution is doubled. If you earn more than $200,000, wages in excess of that amount will be taxed an additional 0.9% for Medicare. Employers do not match this amount.
If you are self-employed, you must pay the entire 12.4% in Social Security and 2.9% in Medicare taxes yourself.
Next up, you’ll notice that federal income tax is withheld from each of your paychecks. How much you pay in federal income tax depends on a slew of factors like your salary, your marital status, how many allowances you are claiming and if you want an additional dollar amount withheld from your paychecks. Your employer uses the information you provided on your W-4 form to determine how much to withhold in federal income tax.
Withholding calculations have changed for the 2018 tax year because of President Trump's new tax plan. The IRS released new withholding guidelines in January, to reflect the new tax plan, and taxpayers should have seen changes to their paychecks starting in February 2018. For the time being, you do not need to fill out a new W-4. Your employer will use the withholdings on your current form.
Other circumstances that can directly affect your Wyoming paycheck include contributions to employer-sponsored health or life insurance plans, as any premiums you pay come from your wages. This is the same for contributions you make to a retirement account through your employer, like a 401(k) or 403(b).
While many people get paychecks on a bi-weekly basis, some receive them monthly. If you get paid bi-weekly, your paychecks will be smaller and more frequent than if you’re paid monthly.
Wyoming Median Household Income
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Whether you chose to live in Wyoming or ended up there by chance, you live in a state with a minimal tax burden, which is excellent news for your paycheck. This is primarily due to the Cowboy State’s lack of state or local income taxes. For example, let’s say you make $50,000 per year. This income will get you much further than it would for someone making the exact same money in a state with high income tax, like California or Minnesota. Though your salary is the same, your take-home pay in Wyoming is much larger.
More good news for your bank account: Wyoming residents enjoy one of the lowest sales tax rates of any state with a sales tax and the eighth lowest property tax rate in the nation on average.
If you are considering becoming a resident of the Cowboy State or if you are looking into refinancing a property there, our Wyoming mortgage guide has the most important information to help get you started on the process of getting a mortgage in the state.
How You Can Affect Your Wyoming Paycheck
If you’d like a bigger paycheck, you may want to start by asking your boss for a raise or to work extra hours if you are eligible for overtime.
However, if you're looking to hold onto more of the wages you are currently making and you don't mind receiving a smaller paycheck, we have some ideas for you.
It may sound counterintuitive to get smaller paychecks and yet keep more of your salary, but hear us out. While you don’t have to pay state taxes in Wyoming, you still have to pay federal taxes. So if you lower your taxable income, you may owe less to Uncle Sam.
One way to do that is to participate in tax-advantaged benefits like a 401(k) retirement account, a commuter benefits program or a Flexible Spending Account, if your employer offers them. Since the money you pay toward these benefits is deducted from your paycheck before taxes are applied, you can lower your taxable income by increasing your contributions, which may mean you owe less in taxes.
Yes, your paycheck will be smaller but remember there are other important reasons to maximize your contributions to a 401(k), like saving for retirement and allowing that money to grow tax-free. If you do decide to shelter more of your money from taxes in a Flexible Spending Account (FSA), keep in mind that there’s an expiration date on the funds you put into a FSA so it’s important that you spend the money before the deadline or you risk losing it entirely.
Most Paycheck Friendly Places
SmartAsset's interactive map highlights the most paycheck friendly counties across the country. Zoom between states and the national map to see data points for each region, or look specifically at one of the four factors driving our analysis: Semi-Monthly Paycheck, Purchasing Power, Unemployment Rate, and Income Growth.
Methodology Our study aims to find the most paycheck friendly places in the country. These are places in the country with favorable economic conditions where you get to keep more of the money you make. To find these places we considered four different factors: semi-monthly paycheck, purchasing power, unemployment rate and income growth.
First, we calculated the semi-monthly paycheck for a single individual with two personal allowances. We applied relevant deductions and exemptions before calculating income tax withholding. To better compare withholding across counties we assumed a $50,000 annual income. We then indexed the paycheck amount for each county to reflect the counties with the lowest withholding burden.
We then created a purchasing power index for each county. This reflects the counties with the highest ratio of household income to cost of living. We also created an unemployment rate index that shows the counties with the lowest unemployment. For income growth, we calculated the annual growth in median income over five years for each county and indexed the results.
Finally, we calculated the weighted average of the indices to yield an overall paycheck friendliness score. We used a one half weighting for semi-monthly paycheck and a one-sixth weighting for purchasing power, unemployment rate and income growth. We indexed the final number so higher values reflect the most paycheck friendly places.
Sources: SmartAsset, government websites, US Census Bureau 2016 5-Year American Community Survey, MIT Living Wage Study, Bureau of Labor Statistics