Wyoming Families Get a Tax Break — Fifth-Lowest Burden in the US, Study Finds

Good news for Wyoming’s middle-class families: you’re keeping more of your paycheck than most Americans.

A new study by Upgraded Points crunched the numbers on income taxes across the country and found that Wyoming families pay the fifth-lowest tax burden in the US. Specifically, a middle-class household (think two parents and two kids) pays an effective tax rate of just 10.4% — well below the national average of 13.6%.

That works out to about $11,064 a year in federal and state income taxes on a pre-tax income of $106,132, leaving Wyoming families with $95,068 to spend after taxes. Not too shabby.

So, what gives Wyoming the edge? For starters, the state has no personal income tax, which gives families a big leg up. Combine that with relatively low living costs, and you’ve got a pretty sweet financial setup for the average household.

The study compared every state by looking at what it costs to maintain a modest standard of living, then calculated how much families pay in taxes on that income. Unsurprisingly, high-cost coastal states like California, New York, and Massachusetts landed at the top of the list — with effective tax rates north of 16% and annual tax bills pushing $30,000.

In contrast, states like Tennessee, Texas, Florida, and Wyoming dominated the low-tax rankings. San Antonio, Houston, and Memphis topped the list of cities where families pay the least, with effective tax rates under 10%.

Wyoming’s tax perks come alongside broader national debate about who really benefits from US tax policy. While the Tax Cuts and Jobs Act (TCJA) — recently extended by Congress — offered breaks to middle-income families (like bigger standard deductions and child tax credits), critics argue it also gave a major boost to wealthier Americans and corporations.

Regardless of where you stand on that debate, the takeaway for Wyoming is clear: being middle class in the Cowboy State comes with some serious tax advantages — and that’s not something every state can say.

For a deeper dive into the full rankings and methodology, you can check out the report at Upgraded Points.