What Wyoming residents actually pay
Wyoming has no state income tax on wages. That removes a layer — but federal AMT, federal capital gains, and the 3.8% Net Investment Income Tax still apply, and a prior state may still have a claim.
No state income tax.
Long-term vs short-term treatment
Federal long-term rates cap at 20% (plus 3.8% NIIT for high earners) on gains held 12+ months past the basis-setting event. For RSUs, the basis-setting event is the vest date. For ISOs held through a qualifying disposition, the rules are stricter: two years from grant and one year from exercise.
Frequently asked
- Does Wyoming tax RSU income the same as wages?
- Wyoming has no state income tax on wages, so RSU ordinary income is federal-only. Note that Washington residents still owe the 7% state long-term capital gains tax on sales above the threshold, and other states may claw back some income if your grant pre-dated your move.
- What happens if I exercise ISOs while living in Wyoming?
- Wyoming does not run a separate state AMT, so only federal AMT applies. You still need to model the bargain element carefully if you plan a cashless exercise-and-sell.
- I moved to Wyoming from another state. Who taxes my vesting RSUs?
- Most high-tax states (CA, NY, MA) source RSU ordinary income to workdays between grant and vest. If your grant pre-dates your Wyoming move, expect the old state to tax the portion of each tranche attributable to workdays earned there. Wyoming taxes the remainder.
- Can I reduce Wyoming taxes by timing my RSU sales?
- Wyoming has no state income tax, so sale timing affects only your federal bill. NIIT and federal capital-gains brackets are still in play.
Related
- RSU taxes — Wyoming
- ISO exercises and AMT — Wyoming
- QSBS — Wyoming
- Moving to or from Wyoming with unvested equity: trailing nexus rules — Wyoming
- RSU vesting schedules — Wyoming
- ESPP taxation — Wyoming
- NSO exercises and state tax — Wyoming
- 401(k) and retirement accounts — Wyoming
- Leaving Wyoming: how to cleanly break residency before a liquidity event — Wyoming
- Wyoming equity-comp overview