Wyoming 2026 Tax Changes — What Residents & Business Owners Must Know
Beginning January 1, 2026, major federal tax changes take effect due to the expiration of key provisions in the Tax Cuts and Jobs Act (TCJA) and updated rules under the One Big Beautiful Bill Act (OBBBA).
Wyoming does not impose a state income tax, but federal changes still heavily impact residents — especially business owners, contractors, investors, and retirees.
- W-2 earners in Cheyenne, Casper, Laramie, Gillette, Rock Springs, Sheridan
- Oil, gas, mining, and energy-sector workers
- Contractors, freelancers, and small business owners
- Real estate investors and landlords
- Short-term rental hosts
- Agricultural and ranching families
- Families with children
- Retirees drawing taxable income
- Dual-income households
Below is the complete Wyoming-focused breakdown of the 2026 tax changes.
Key 2026 Federal Changes Affecting Wyoming
Standard Deduction Shrinks
The expanded standard deduction under TCJA expires in 2026.
- Single: ~$8,300
- Married Filing Jointly: ~$16,600
- Head of Household: ~$12,400
This increases federal taxable income for most Wyoming residents.
Even without a state income tax, the increased federal burden impacts refunds, withholding, and retirement strategies.
Federal Income Tax Brackets Increase
- 12% → 15%
- 22% → 28%
- 24% → 31%
- dual-income families
- oilfield and energy workers
- ranching and agricultural households
- teachers, healthcare workers, law enforcement
- households earning $60K–$250K
Higher brackets reduce take-home pay and increase final federal liability.
QBI Deduction Made Permanent Under OBBBA
OBBBA permanently preserved the 20% Qualified Business Income (QBI) deduction.
- LLCs
- S-Corps
- sole proprietorships
- contracting and service businesses
- qualifying rental operations
- revised income thresholds
- updated SSTB phaseouts
- stricter IRS documentation requirements
Because Wyoming has no state income tax, QBI is exclusively a federal planning tool.
Child Tax Credit Shrinks
- The federal Child Tax Credit drops from about $2,000
- To roughly $1,000 per child
- Refundability is reduced
Families statewide — especially in fast-growing cities — will notice smaller refunds.
Marriage Penalty Returns
- dual-income couples move into higher brackets more quickly
- credit eligibility declines sooner
- combined incomes increase overall federal tax owed
Wyoming’s large dual-income workforce in oil, gas, healthcare, construction, and education will feel this the most.
Wyoming–Specific Tax Considerations
1. No State Income Tax — But Federal Burden Still Rises
- withholding and refund outcomes
- self-employment tax
- capital gains tax
- retirement withdrawal tax
- estimated quarterly payments
Federal rules matter greatly for Wyoming residents.
2. Real Estate Investors & Landlords Face 2026 Shifts
Wyoming’s real estate markets — including Cheyenne, Casper, Laramie, Sheridan, and Jackson Hole — will be impacted by:
- federal capital gains changes
- depreciation reductions
- rental loss limitations
- STR participation and compliance rules
- timing strategies for sales and refinances
Property values have risen sharply in many counties, increasing federal capital gains exposure.
3. STR Owners Must Prepare for Updated Federal Requirements
- Jackson Hole
- Yellowstone region communities
- Laramie
- Cheyenne
- Ski and outdoor recreation areas
- reduced bonus depreciation
- stricter material participation documentation
- updated IRS safe harbor rules
- limitations on rental losses
STR operators should maintain detailed logs and records.
4. Energy-Sector Workers Face High Federal Exposure
- oilfield workers
- mining workers
- natural resource workers
- trades
- transportation & logistics
Many earn variable or overtime-heavy income, making higher 2026 federal brackets especially impactful.
5. Agriculture & Ranching Families Must Plan Ahead
Wyoming has a significant ranching and agricultural economy.
- equipment depreciation
- livestock and land sales
- farm income averaging
- operating loss rules
- timing of major purchases or sales
These households must coordinate farm planning with federal tax strategy.
6. Retirement Income Still Taxable at the Federal Level
- IRA withdrawals
- 401(k) distributions
- pensions
- investment withdrawals
remain fully taxable federally.
Higher brackets in 2026 increase retirement tax burdens.
Who Is Most Affected in Wyoming (2026)
- Dual-income households
- Energy-sector workers
- Contractors and small business owners
- Real estate investors and landlords
- STR hosts
- Agricultural and ranching families
- Families with children
- Retirees with taxable income
- Middle-income earners
What Wyoming Residents Should Do Before December 31, 2025
- Review federal withholding
- Maximize retirement contributions
- Consider Roth conversions
- Review business structure and QBI eligibility
- Document STR and rental activity
- Evaluate capital gains exposure
- Plan timing for real estate or equipment purchases
- Build a 2025–2026 federal tax strategy
Wyoming 2026 Tax FAQ
Does Wyoming have a state income tax?
No. Wyoming does not tax personal income.
Does Wyoming conform to QBI?
No. QBI is federal-only.
Are families affected in 2026?
Yes. Reduced Child Tax Credits and higher AGI shrink refunds.
Are STR owners impacted?
Yes. Participation and depreciation rules tighten in 2026.
Are retirees affected?
Yes. Federal bracket increases raise the cost of withdrawals.
Get your 2026 Wyoming Tax Strategy
Even though Wyoming has no state income tax, the federal tax changes coming in 2026 — higher brackets, reduced deductions, and new rules for business and rental income — will impact nearly every resident.
Proper planning ensures you stay ahead of the changes and protect your income.