Updated October 7, 2026. Quick answer: No. The Wyoming Legislative Service Office’s tax-structure document lists “Individual Income Tax 0% (Note Art. 15, Sec. 18)”, so a TSP withdrawal by a Wyoming resident is not taxed by the state.
Wyoming TSP withdrawal tax treatment at a glance
| Item | What the documents say |
|---|---|
| TSP withdrawals | Not taxed by Wyoming: the documents read describe no individual income tax that applies to a withdrawal |
| FERS annuity | The documents read do not treat a FERS annuity differently from a TSP withdrawal; with no individual income tax, neither is taxed by Wyoming |
| Rate or limit printed | No rate: no individual income tax |
| Where it is reported | Nothing to report on a Wyoming return |
| Source | Wyoming Legislature, LSO Legal & Budget/Fiscal Divisions; Wyoming Legislature, LSO |
What the Wyoming documents say
The Legislature’s Legislative Service Office prints the state’s tax structure in a June 2025 document, which lists “Individual Income Tax 0% (Note Art. 15, Sec. 18)”. A 2021 comparison with other states from the same office lists Wyoming under “No Individual Income Taxes”.
These are legislative staff documents; the Department of Revenue’s home page, read for this page, carries no income tax statement. Neither document names the Thrift Savings Plan or a retirement withdrawal.
A worked example at $30,000 of withdrawals
An illustration, not a return: a Wyoming resident who takes $30,000 from the TSP in 2026 owes $0 of Wyoming individual income tax on it, on the documents read. Federal income tax still applies and is outside this page.
If you moved to Wyoming or left it
The rules above are Wyoming’s own, for a resident. Federal law limits what a state you have left may do: “No State may impose an income tax on any retirement income” of someone who is not a resident or domiciliary of that state, as 4 U.S.C. 114(a) puts it. The statute defines retirement income by reference to plans described in the Internal Revenue Code; this page does not decide whether a particular TSP payment meets that definition. If you moved during the year, check each state’s page and return. See CMG’s TSP withdrawal options and FERS, TSP and Social Security sequencing pages for the federal side.
What changes in 2026
The documents read for Wyoming announce no change for 2026 that is specific to TSP withdrawals. The instructions read are for tax year 2025, the newest archived; check the state agency for the 2026 forms when they are published.
What the documents do not say
- The sources are legislative staff documents, not the Department of Revenue, and neither names the TSP or retirement income.
Common mistakes
- Assuming the absence of a Wyoming income tax removes the federal tax on a TSP withdrawal; it does not.
- Assuming the answer for one state applies to another, or that the state answer changes the federal tax on the withdrawal.
Related: TSP withdrawal options, state tax on TSP withdrawals, Wyoming retirement taxes, how Wyoming taxes pensions, and how Wyoming taxes 401(k) and IRA withdrawals.
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Answer againSources
- Wyoming Statutory Tax Structure: Title 39: https://wyoleg.gov/InterimCommittee/2025/03-202506032-01WyomingtaxstructureratesandcollectionsJune32025.pdf
- Wyoming Tax Structure: A comparison to selected other states: https://wyoleg.gov/InterimCommittee/2021/03-202105102-6.wyotaxstructurecomparisontootherstatesLSO.pdf
- 4 U.S.C. 114, Limitation on State income taxation of certain pension income (U.S. Code, GovInfo): https://www.govinfo.gov/content/pkg/USCODE-2023-title4/html/USCODE-2023-title4-chap4-sec114.htm
Sources: the primary documents linked above, read on October 7, 2026. General information, not tax advice. Your own facts decide the outcome, and a tax professional or the state agency itself is the right place to confirm anything consequential.