Skip to content
Independent money guidance
Clear Money Guide
Start here
Menu

State Tax Withholding on IRA and 401(k) Withdrawals in Wyoming (2026)

Updated October 7, 2026. Quick answer: No. The Legislature’s tax rates table lists “Individual Income Tax 0% (Note Art. 15, Sec. 18)”, so there is no Wyoming income tax withholding on an IRA or 401(k) withdrawal.

Wyoming withholding at a glance

ItemWhat the documents say
Is it required?No. The Legislature’s tax table lists the individual income tax rate as 0%
Rate or amountNo rate: 0%, with $0 collected in fiscal year 2024
How to start or stop itNothing to file: the table read names no Wyoming withholding form
Direct rolloverThe table read is silent on it; with no Wyoming income tax described, there is no Wyoming withholding to avoid
Changed for 2026?No change stated; the table read is dated June 3, 2025

What the Wyoming documents say

The Wyoming Legislature’s Legal and Budget/Fiscal Divisions publish a table of the state’s tax rates and collections dated June 3, 2025. It lists “Individual Income Tax 0% (Note Art. 15, Sec. 18)”, and shows $0 collected for fiscal year 2024.

The table cites Article 15, Section 18 of the Wyoming Constitution as the note for that line. It is a rates table, not a withholding guide.

A $50,000 withdrawal: cash in hand or a direct rollover

Take a $50,000 401(k) withdrawal paid to you. The IRS says a taxable eligible rollover distribution paid to you from an employer plan is subject to “mandatory income tax withholding (generally at a rate of 20%)”, which on $50,000 is $10,000 (computed as $50,000 times 20%) held back for federal tax. Wyoming lists the individual income tax at 0%, so nothing is held back for Wyoming: the Wyoming amount withheld is $0.

The other path is a direct rollover to an IRA or another plan. For federal tax the IRS says “The mandatory withholding doesn’t apply in a direct rollover”. A direct rollover therefore has no Wyoming withholding to avoid.

What the documents do not say

  • The page rests on a legislative staff table; the Department of Revenue’s pages did not state the rule. The table says nothing on withholding forms, rollovers or any change for 2026.

Common mistakes

  • Reading a legislative staff table as a Department of Revenue ruling; it records rates and collections, nothing more.
  • Looking for a Wyoming form to stop withholding; the table names none.

Related: how Wyoming taxes 401(k) and IRA withdrawals, Wyoming retirement taxes, retirement withholding calculator, and retirement taxes by state.

Find the right next step for your situation

About how much do you have invested? Pick the range that fits; your next step appears immediately below.

About how much do you have invested?

Sources

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.

See the adviser match on this page