Study Says Wyoming Is A Great Tax State For Middle, Upper Incomes

A new study by the financial website WalletHub finds that Wyoming is the fourth-best state in the country for both middle and upper-income people.

It’s not quite as favorable tax-wise for low-income earners, but even that rating is relatively high at number 19. The survey defined low-income people as those making $25,000 or less, while high-income was defined as $150,000 per year or more. Middle income was defined as between $25,000 and $150,000.

You can read the survey here.

No State Income Tax, But Property Taxes An Issue For Some

It’s worth noting that Wyoming is one of only a handful of states with no personal income tax. While an income tax has been mentioned occasionally in the Wyoming Legislature over the years, the idea is deeply unpopular and has never gotten serious traction. Much of the cost of state government in Wyoming has traditionally been paid by revenues from the state’s energy and minerals extraction industries.

However, there has been concern over high property taxes in the Cowboy State recently. Several bills have been proposed in the Wyoming Legislature dealing with property taxes. Backers of a proposed constitutional amendment on property taxes have also been at work to get their proposal before Wyoming voters.

The Breakdown Of The Survey Results

The WalletHub survey found that the wealthy in Wyoming on average paid 6.22 percent of their income in taxes, the fourth lowest rate in the country. Middle-income earners shelled out 7.69 percent of their income, again, fourth in the nation. Low-income earners in Wyoming paid a little higher percent of their income at 9.43 percent. That ranked 19th in the country.

WalletHub explained the survey this way: ”With less than a month until the tax deadline for most Americans, WalletHub identified the best states where people in different income brackets spend the most and least on sales and excise taxes, property taxes and income taxes. It’s important to note that our analysis does not focus on tax rates but rather on the share of a resident’s income that they contribute toward various tax obligations. For instance, tax rates may be lower in one state, but because of a comparatively higher cost of living, the actual tax burden may be higher for that state’s residents.”