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
| Item | What the documents say |
|---|---|
| Is it required? | No. The Legislature’s tax table lists the individual income tax rate as 0% |
| Rate or amount | No rate: 0%, with $0 collected in fiscal year 2024 |
| How to start or stop it | Nothing to file: the table read names no Wyoming withholding form |
| Direct rollover | The 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.
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Answer againSources
- Wyoming Tax Rates and Collections (June 3, 2025): https://wyoleg.gov/InterimCommittee/2025/03-202506032-01WyomingtaxstructureratesandcollectionsJune32025.pdf
- IRS Tax Topic 413, Rollovers from retirement plans: https://www.irs.gov/taxtopics/tc413
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.