2026 · Wyoming
Wyoming severance pay tax
Federal tax takes its 22% cut, but Wyoming takes nothing. And pays up to $671 a week in unemployment. Here's the real number.
Counts toward the $184,500 Social Security cap.
Wages, new job, spouse, sets your real tax rate.
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Wyoming layoff at a glance
| State tax on severance | None, no state income tax |
| State income tax | None |
| Unemployment weekly max | $671 for up to 26 weeks |
| Unemployment taxed by Wyoming? | No |
How Wyoming withholds on severance
Wyoming has no state income tax, so none of your severance is withheld for the state, a real edge over high-tax states. On top of that, the federal government withholds a flat 22% (37% over $1 million) and FICA, 6.2% Social Security up to the $184,500 wage base plus 1.45% Medicare.
Wyoming has no state income tax at all, so neither your severance nor your unemployment faces a state levy, a group of just nine states. If you also claim unemployment, Wyoming pays up to $671 a week for up to 26 weeks, and does not tax it. That's the Wyoming layoff picture in one place, the severance tax here, the unemployment on its own Wyoming page.
Worked example: $40,000 severance in Wyoming
A single filer, $40,000 severance paid separately, with $60,000 of other 2026 income:
| Federal withholding (22%) | −$8,800 |
| FICA (Social Security + Medicare) | −$3,060 |
| Wyoming withholding | $0 |
| Net check | $28,140 |
| What it actually costs in tax | $11,210 |
Over-withheld by about $650, expect roughly that back as a refund at filing. The withholding is a fixed rate; your actual tax is your marginal rate on the severance stacked on your other income.
Stacking Wyoming unemployment on top
Wyoming sizes your weekly check off your highest-earning quarter, up to $671 a week, mid-pack nationally (16th of 51). There is no separate dependent add-on. Duration up to 26; max $671 eff 2026-07-05.
| Weekly benefit range | $48 - $671 |
| How the amount is set | Off your highest-earning quarter |
| Maximum duration | 26 weeks (up to 26; max $671 eff 2026-07-05) |
| Waiting week | No waiting week |
| Dependent allowance | None |
| Taxed by Wyoming | No |
Stacked together, that $40,000 severance nets about $28,140 and Wyoming's unemployment can add up to $17,446 over 26 weeks, about 11 months of a $4,000 budget before you need a paycheck. File through Wyoming Department of Workforce Services; nail down the exact figure in the runway calculator.
Questions about Wyoming severance tax
Is severance taxed higher in Wyoming?
No. It's withheld at a flat 22% federally and Wyoming takes no state tax at all, but it's taxed as ordinary income at your normal rates. You settle up at filing.
Does Wyoming tax my severance?
No, Wyoming has no state income tax, so your severance keeps its full value at the state level (federal tax and FICA still apply).
Will I get a refund or owe more?
It depends on your bracket. The flat 22% over-withholds for lower earners (refund) and under-withholds for those in the 32 to 37% brackets (set aside the difference). Enter your numbers above to see which way it goes for you.
Your Wyoming layoff toolkit
- Wyoming unemployment benefits weekly amount and duration
- Runway calculator how long your money lasts
- Wyoming paycheck calculator take-home at your next job
- Wyoming 1099 tax if you go freelance
An estimate for the 2026 tax year. State supplemental figures from the verified dataset, last verified 2026-07-24. Nothing you enter is stored. Not tax advice.