Among the 50 states in the U.S., there are very few states without a state income tax. Wyoming is one of those few, as it does not impose a personal income tax.

In the state capital of Wyoming, Cheyenne, what is the level of household income within this tax structure?

According to the Census ACS 2023 estimates, the median household income in Cheyenne is about $70,000. This is approximately $8,500 lower than the national median income of $78,538, but the data suggests that this gap may be felt to be much narrower than it appears.

Looking at the numbers, Wyoming has no state income tax. This means that a household earning $70,000 pays thousands of dollars less in taxes compared to households in other states. For example, a California resident would have to pay over $3,000 to $5,000 in state income tax on a $70,000 income, while a resident of Cheyenne retains that amount as disposable income. Even with an $8,500 difference from the national median income, the gap in terms of post-tax real purchasing power is significantly reduced.

The economic base of Cheyenne can be divided into three main sectors. The first is government and military. F.E. Warren Air Force Base (part of the U.S. Strategic Command) is a key employment base for Cheyenne's economy, contributing to the overall income stability of the city through military and civilian personnel households. The second is energy. Wyoming is rich in energy resources such as coal, natural gas, and oil, and incomes in this industry often exceed the national average. The third is data centers. Recently, large IT companies like Microsoft have been establishing or considering data centers in Wyoming, which could signal an influx of high-paying tech jobs.

Housing costs are another strength of Cheyenne. The median home price is around $320,000 to $400,000, which is quite low compared to other western cities. Compared to Colorado's Denver (over $550,000) or Utah's Salt Lake City (over $450,000), the difference is significant. Cheyenne is located about 100 miles (160 km) north of Denver, allowing households to access the Denver metropolitan job market while enjoying much lower housing costs.

According to the cost of living index, Cheyenne generally shows a lower cost of living compared to the national average. Major categories such as groceries, utilities, and healthcare show savings compared to high-cost states. A household earning $70,000 in tax-free Wyoming may have a similar or even greater disposable income compared to households earning $75,000 to $77,000 in states with a 5-6% income tax rate.

Of course, there are limitations. Cheyenne is a small city with a population of about 65,000, which means there are constraints in terms of the variety of job opportunities, cultural infrastructure, and access to specialized medical services that one might expect in a larger city. With the entire population of Wyoming being around 600,000, the local labor market is quite small, and the high dependence on specific industries (energy, public sector) is a risk to consider in the long term. While the median household income of $70,000 in Cheyenne, WY is lower than the national median of $78,538, the structural advantage of having no state income tax significantly narrows the gap in disposable income.