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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Wyoming VS COUNTRY B Colorado

Side-by-side analysis of income tax, effective rates, and take-home pay for Wyoming and Colorado in 2026.

Daniel · CountryTaxCalc Updated June 2026 Tax Comparison 2026
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OVERVIEW
Wyoming and Colorado share the Rocky Mountain lifestyle but diverge significantly on income taxation. Wyoming has no income tax — one of nine US states to offer the exemption — while Colorado imposes a 4.4% flat rate on all income. At $100,000 income, a Colorado resident pays approximately $4,400 in state income tax while a Wyoming resident pays $0. Colorado's unique TABOR mechanism (Taxpayer's Bill of Rights) partially offsets this burden: when state revenues exceed constitutional limits, the excess must be refunded to taxpayers. In recent years, TABOR refunds have been approximately $800 per filer — reducing the net Wyoming income tax advantage at $100K from $4,400 to approximately $3,600. At higher incomes ($200K–$500K), the flat 4.4% rate becomes much more significant and the TABOR refund represents a smaller proportion of the total burden. On property taxes, the two states are nearly equivalent: Wyoming averages approximately 0.57% and Colorado approximately 0.55% — both well below the national average. Sales taxes favor Wyoming slightly: Wyoming's combined average is approximately 5.36% vs Colorado's approximately 7.5% (Denver reaches 8.81%). For high earners, remote workers, and investors relocating in the Mountain West corridor — choosing between Jackson Hole, Cheyenne, Denver, or Boulder — Wyoming's 0% income tax delivers a clear and compounding financial advantage over Colorado's 4.4% flat rate.
Section 01

The Big Picture

Top-line rates and effective take-home for a typical earner — including income tax, social contributions, and applicable surcharges.
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COUNTRY A
Wyoming
TAX RATE
0%
No Income Tax — Mountain West's Lowest Overall Tax Burden
No income tax; no capital gains tax; 4% state sales tax (~5.36% combined average); property tax ~0.57% average (among the lowest in the Mountain West); no estate tax; mineral severance taxes on oil, gas, and coal fund significant public services
🏔️
COUNTRY B
Colorado
TAX RATE
4.4%
Flat Income Tax — TABOR Refunds Partially Offset the Burden
4.4% flat income tax on all income (reduced from 4.55% in 2022); TABOR (Taxpayer's Bill of Rights) refunds excess state revenue — approximately $800/filer annually in recent years; 2.9% state sales tax (~7.5% combined average); property tax ~0.55% average; no estate tax; capital gains taxed as ordinary income at 4.4%
TYPICAL ANNUAL DIFFERENCE
Moving from Colorado → Wyoming at Annual Wyoming income tax saving vs Colorado (at $100K–$500K income); gross saving before TABOR refund consideration
$4,400–$22,000+
That's $367–$1,833/month at $100K–$500K income back in your pocket
Section 02

Tax Savings by Income Level

Net take-home after all income tax, social contributions, and surcharges — for a single employee with no dependents.
GROSS INCOME
🦬 WY TAX
🏔️ CO TAX
SAVINGS
10-YEAR
$50,000
$0 income tax; ~$1,339 property (0.57% × $235K home); ~$1,340 sales (5.36% × $25K spending) = ~$2,679 total
~$2,200 income tax (4.4% flat); −~$800 TABOR refund = ~$1,400 net income tax; ~$1,293 property (0.55% × $235K home); ~$1,875 sales (7.5% × $25K) = ~$4,568 total
WY saves ~$2,200/yr income tax gross at $50K; ~$1,400 net after TABOR offset; ~$535/yr in sales tax
$19,350
$100,000
$0 income tax; ~$1,710 property (0.57% × $300K home); ~$1,608 sales (5.36% × $30K) = ~$3,318 total
~$4,400 income tax (4.4% flat); −~$800 TABOR refund = ~$3,600 net income tax; ~$1,650 property (0.55% × $300K home); ~$2,250 sales (7.5% × $30K) = ~$7,500 total
WY saves ~$4,400/yr income tax gross at $100K; ~$3,600 net after TABOR; ~$642/yr in sales tax = ~$4,242 combined annual advantage
$42,420
$200,000
$0 income tax; ~$2,850 property (0.57% × $500K home); ~$2,144 sales (5.36% × $40K) = ~$4,994 total
~$8,800 income tax (4.4% flat); −~$800 TABOR = ~$8,000 net; ~$2,750 property (0.55% × $500K home); ~$3,000 sales (7.5% × $40K) = ~$13,750 total
WY saves ~$8,800/yr income tax gross at $200K; ~$8,000 net after TABOR; ~$856/yr in sales tax = ~$8,856 combined annual advantage
$88,560
$300,000
$0 income tax; ~$3,990 property (0.57% × $700K home); ~$2,680 sales (5.36% × $50K) = ~$6,670 total
~$13,200 income tax (4.4% flat); −~$800 TABOR = ~$12,400 net income tax; ~$3,850 property (0.55% × $700K home); ~$3,750 sales (7.5% × $50K) = ~$19,000 total
WY saves ~$13,200/yr income tax gross at $300K; ~$12,400 net after TABOR; ~$1,070/yr in sales tax = ~$13,470 combined annual advantage
$134,700
$500K capital gain
$0 state capital gains tax (Wyoming has no income or capital gains tax of any kind)
~$22,000 Colorado state capital gains tax (CO taxes capital gains as ordinary income at the 4.4% flat rate; TABOR refund does not separately offset capital gains tax liability)
WY saves ~$22,000 on each $500K capital gain event vs Colorado
Depends on frequency of gain events
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Wyoming Pros & Cons

+ PROS
  • No income tax — Wyoming residents pay $0 state income tax on wages, salaries, investment income, capital gains, business income, and retirement distributions at any income level; Colorado charges 4.4% flat on all income; at $200,000 income, Wyoming saves approximately $8,800/year before TABOR
  • No capital gains tax — Wyoming has no state capital gains tax; Colorado taxes gains as ordinary income at 4.4% with no preferential rate for long-term gains; a $500,000 capital gain costs approximately $22,000 in Colorado state tax vs $0 in Wyoming
  • Lower combined sales tax — Wyoming's combined average is approximately 5.36% vs Colorado's ~7.5%; Denver's rate reaches ~8.81%; a family spending $40,000/year on taxable goods saves approximately $856/year in Wyoming
  • No estate tax — Wyoming has no state estate tax; Colorado also has no state estate tax; both states are equal on this dimension, but Wyoming's income tax advantage compounds long-term wealth accumulation
  • Mineral revenues fund public services — Wyoming's abundant oil, gas, and coal severance taxes provide significant government revenue without the need for income or high property taxes, giving Wyoming a structurally sound no-income-tax position
− CONS
  • Marginally higher property tax than Colorado — Wyoming's ~0.57% effective rate is slightly above Colorado's ~0.55%; in practice both are well below the US national average (~1.07%) and the difference is minimal for most homeowners
  • Limited urban infrastructure — Wyoming's largest cities (Cheyenne ~65,000, Casper ~57,000) are modest compared to Denver metro (2.9M) and Boulder; career networking, specialist healthcare, and cultural amenities are far more limited
  • Exposure to commodity cycles — Wyoming's government revenues partly depend on oil, gas, and mineral extraction; commodity price downturns can stress state finances and potentially lead to future tax changes
  • Jackson Hole housing costs offset tax savings — Teton County (Jackson Hole) attracts high earners with 0% income tax, but median home prices exceed $1.2M+, which can significantly reduce or eliminate the income tax advantage for buyers
🏔️

Colorado Pros & Cons

+ PROS
  • Strong career ecosystem — Denver and Boulder host thriving technology, aerospace, energy, biotech, and outdoor industry employers; Colorado's professional economy far outpaces Wyoming's in career diversity and advancement opportunities
  • TABOR refunds partially offset income tax — Colorado's constitutional TABOR mechanism refunds excess revenues; recent refunds of approximately $800/filer partially offset the 4.4% income tax burden at lower income levels
  • Superior urban amenities — Denver's cultural and entertainment offerings, Boulder's university and tech scene, and Colorado's national park access create a lifestyle proposition that Wyoming's smaller cities cannot match
  • Nearly equivalent property tax — Colorado's effective rate (~0.55%) is marginally below Wyoming's (~0.57%); for homeowners, property taxes are essentially equal between the two states
− CONS
  • Flat 4.4% income tax on all income — Colorado residents pay 4.4% from the first dollar of income; at $100,000, approximately $4,400/year; at $300,000, approximately $13,200/year; Wyoming residents pay $0
  • Capital gains taxed as ordinary income — Colorado provides no preferential rate for long-term capital gains; stock sales, real estate gains, and business disposals are taxed at 4.4%; Wyoming charges $0; a $500,000 gain costs approximately $22,000 in Colorado
  • Higher combined sales tax — Colorado's combined average of approximately 7.5% exceeds Wyoming's ~5.36%; Denver's combined rate reaches ~8.81%; a family spending $40,000/year pays approximately $856/year more in Colorado
  • TABOR refund is flat, not proportional — the ~$800 TABOR refund is roughly constant regardless of income; at $300,000 income with $13,200 in income tax, TABOR returns only ~6% of the liability, making Wyoming's income tax advantage dominant at higher incomes
FAQ

Frequently Asked Questions

Does Wyoming have an income tax?

No. Wyoming has no state income tax of any kind. Residents pay $0 state tax on wages, salaries, investment income, capital gains, business income, and retirement distributions. Wyoming is one of nine US states with no income tax. The state funds services primarily through mineral severance taxes on oil, gas, and coal, supplemented by a combined sales tax averaging ~5.36% and property taxes (~0.57% effective rate).

What is Colorado's TABOR refund and how much is it?

TABOR stands for Taxpayer's Bill of Rights, a 1992 Colorado constitutional amendment capping state revenue growth. When revenues exceed the cap, the excess must be refunded to income tax filers. In recent years (2022–2024), TABOR refunds have been approximately $750–$800 per filer. The refund partially offsets Colorado's 4.4% income tax at lower incomes — but at $200,000 income, the $8,800 Colorado tax far exceeds the ~$800 TABOR refund. Wyoming residents pay $0 income tax and receive no TABOR refund.

How much does a Colorado resident save by moving to Wyoming?

At $100,000 income: approximately $4,400/year gross (or ~$3,600 net after Colorado's ~$800 TABOR refund). At $200,000: approximately $8,800/year gross, ~$8,000 net. At $300,000: approximately $13,200/year gross, ~$12,400 net. For capital gains: a $500,000 gain saves approximately $22,000 in Colorado state tax. Wyoming's sales tax advantage adds ~$640–$1,070/year depending on spending. Over 10 years at $200K income, cumulative income tax savings total approximately $88,000.

How do property taxes compare between Wyoming and Colorado?

Wyoming and Colorado have nearly equivalent property taxes — both well below the US national average. Wyoming's effective rate averages approximately 0.57% of market value; Colorado's approximately 0.55%. On a $400,000 home: Wyoming costs approximately $2,280/year; Colorado approximately $2,200/year — a difference of just $80/year. Property tax is not a meaningful differentiator between these two states. Both are substantially below the national average of approximately 1.07%.

Is Wyoming or Colorado better for remote workers?

Wyoming is financially superior for remote workers, especially at higher income levels. At $100,000: Wyoming saves approximately $3,600–$4,400/year vs Colorado. At $150,000: approximately $5,800–$6,600/year. The trade-off: Wyoming's cities (Cheyenne, Casper, Jackson Hole) are smaller and less urban than Denver or Boulder. Remote workers who prioritise outdoor lifestyle and tax savings over urban density find Wyoming compelling. Jackson Hole attracts high-earning remote workers, though its housing costs (median ~$1.2M+) partially offset the income tax advantage.

Does Colorado have a capital gains tax?

Yes. Colorado taxes capital gains as ordinary income at the flat 4.4% rate. Unlike federal tax rules, Colorado offers no preferential rate for long-term capital gains. A Colorado resident selling $500,000 in stock pays approximately $22,000 in state capital gains tax. A Wyoming resident pays $0. For investors, business owners, and real estate sellers, Wyoming's $0 capital gains tax can represent substantial savings on each transaction.

What are Wyoming's sales taxes compared to Colorado?

Wyoming's state sales tax is 4%, with combined state and local averaging approximately 5.36%. Colorado's state rate is 2.9%, but local taxes push the combined average to approximately 7.5% statewide; Denver's combined rate reaches approximately 8.81%. A household spending $30,000/year on taxable goods pays approximately $1,608 in Wyoming vs $2,250 in Colorado — saving approximately $642/year. Wyoming's sales tax advantage is moderate but real, stacking on top of the income tax savings.
From the brief
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IT€300kall foreign income, 15yr
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