Updated October 16, 2026. Quick answer: Wyoming’s documents read show no individual income tax: the Legislative Service Office table lists “Individual Income Tax 0%” for the base rate, so an inherited IRA withdrawal has no Wyoming income tax to apply to it.
Wyoming at a glance
| Item | What the documents say |
|---|---|
| How the state taxes retirement-account income | No individual income tax: the base rate is listed as 0% |
| Do the state’s documents address beneficiaries? | Not addressed: there is no individual income tax to apply to it |
| Retirement exclusion or credit | Not needed; the table lists a 0% individual income tax rate |
| Rate in the documents read | 0% |
| State inheritance or estate tax | W.S. 39-19-103 imposes a tax on the transfer of the Wyoming gross estate of every decedent, measured by the state death tax credit allowed against federal estate taxes; the documents do not say what it amounts to today |
| Changed for 2026? | No 2026 change to this rule is stated in the documents read |
What the Wyoming documents say
The Legislative Service Office’s tax rates and collections table lists “Individual Income Tax 0%” as the base rate for fiscal year 2025, with a note citing Article 15, Section 18 of the Wyoming Constitution.
Title 39, Chapter 12 of the Wyoming Statutes is headed Income Tax. Its section 39-12-101 says the state does hereby “preempt for itself the field of imposing and levying income taxes” so that no county, city, town or other political subdivision may impose one.
Wyoming’s death tax is in a different chapter. W.S. 39-19-103 imposes a tax on the transfer of the Wyoming gross estate of every decedent, with the amount measured by the maximum state death tax credit allowed against federal estate taxes.
The federal 10-year rule and your Wyoming tax year
IRS Publication 590-B says a beneficiary may be required to take the entire account balance by the “end of the 10th year following the year of the owner’s death”, with exceptions for certain beneficiaries. Because the balance generally has to come out within that window, the timing of each withdrawal decides which tax year it lands in. See the 10-year rule and annual RMDs, lump sum versus spreading withdrawals and inherited IRA rules.
Withholding and other state taxes
Whether a state withholds from a withdrawal is a separate rule: see state withholding on retirement withdrawals. For Wyoming’s own death taxes, see inheritance tax by state.
What the documents do not say
- The documents read do not mention inherited accounts or beneficiaries of retirement accounts.
- The statute describes the Chapter 19 tax as measured by the state death tax credit under federal law; the documents read do not say what it amounts to today.
- They say nothing about a deduction or credit for estate tax or income in respect of a decedent.
Common mistakes
- Assuming Wyoming’s rule for your own retirement income also covers an account you inherited: read whether its documents address beneficiaries, and confirm the point with a Wyoming preparer.
Related: state tax on inherited IRA withdrawals, state by state, whether Wyoming taxes 401(k) and IRA withdrawals, Wyoming retirement taxes, inheritance tax by state, inherited IRA rules, spouse versus non-spouse beneficiary rules, and state withholding on retirement withdrawals.
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Answer againSources
- Wyoming Tax Rates and Collections (Wyoming Statutory Tax Structure, June 3, 2025): https://wyoleg.gov/InterimCommittee/2025/03-202506032-01WyomingtaxstructureratesandcollectionsJune32025.pdf
- Wyoming Statutes Title 39: Taxation and Revenue: https://wyoleg.gov/statutes/compress/title39.pdf
- IRS Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs): https://www.irs.gov/pub/irs-pdf/p590b.pdf
Sources: the primary documents linked above, read on October 16, 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.