Bartenders & Servers in Wyoming: taxes and retirement for 2026
For bartenders, servers, baristas and other workers paid largely in tips in Wyoming. Wyoming has no state income tax on wages or self-employment income. Here are the 2026 rules, a worked example and the official sources.
Wyoming rules for bartenders & servers
- State income tax (2026)
- Wyoming has no state income tax on wages or self-employment income. Wyoming has no individual or corporate income tax.
- Wyoming annual report license tax (LLCs and corporations)
- Applies to registered entities, including LLCs, corporations, limited partnerships, and registered LLPs; a sole proprietor with no registered entity doesn't file it. The tax is due each year with the annual report, which is due in the anniversary month of the entity's formation. It is the greater of $60 or $0.0002 per dollar of assets located and employed in Wyoming, so $60 for entities with $300,000 or less in Wyoming assets.
- Minimum wage (2026)
- Federal $7.25 an hour; tipped cash wage $2.13 an hour. Wyoming's own minimum wage is $5.15 an hour (W.S. 27-4-202), but employers covered by the federal Fair Labor Standards Act must pay the federal $7.25. Tipped workers (more than $30 a month in tips) get at least $2.13 an hour in cash, and tips must bring them up to the applicable minimum. Tips belong to the employee (W.S. 27-4-507(a); https://wyoleg.gov/statutes/compress/title27.pdf).
- Unemployment and workers' comp contractor test (W.S. 27-3-104(b) and 27-14-102(a)(xxiii))
- A worker paid for services is treated as an employee unless they meet all three tests. They are free from control over the details of the work, both by contract and in fact. They present themselves to the public as self-employed or an independent contractor. And they can send someone else to do the work.
- Transportation network company driver status (2017 HB 80, W.S. Title 31, ch. 20)
- Rideshare drivers are independent contractors and fall outside the Wyoming Worker's Compensation Act if four conditions hold. The company does not unilaterally set the hours they must be available and does not stop them from using other apps. It also does not bar unrelated commercial work, and both sides agree in writing that the driver is an independent contractor.
- Portable benefit accounts (SF 41, 2026; W.S. 27-1-117)
- Anyone, including app-based companies and contractors themselves, may contribute to a portable benefit account for an independent contractor. The account can pay for health, income-replacement, vision, dental, life, or retirement benefits. Contributions can't be used to classify the worker as an employee, and money withheld from pay requires a written opt-in that the worker can cancel at any time. The governor signed it March 6, 2026 (Enrolled Act 30); the account provisions took effect July 1, 2026.
Federal rules for 2026
No tax on tips (2025 to 2028)
Eligible workers in occupations that customarily receive tips can deduct up to $25,000 of qualified tips a year from federal taxable income, whether or not they itemize. The deduction shrinks for modified AGI over $150,000 ($300,000 joint). It is income tax only: Social Security and Medicare still apply to tips.
Tips must be reported
Employees must report cash tips of $20 or more in a month to their employer by the 10th of the next month. Tips you did not report go on Form 4137. Only reported tips count toward the deduction.
Overtime deduction
W-2 workers who are owed overtime under federal law can also deduct the overtime premium, up to $12,500 a year ($25,000 joint), with the same income phase-out.
Roth IRA
Without a workplace plan, a Roth IRA lets you save up to $7,500 in 2026 ($8,600 at 50 or older) and withdraw qualified money tax-free in retirement, subject to income limits.
A worked example
| Tips deduction | $15,000 |
|---|---|
| Federal income tax without the deduction | $3,220 |
| Federal income tax with it | $1,420 |
| Federal income tax saved | $1,800 |
Single filer, standard deduction, 2026 brackets. Payroll taxes on tips are unchanged. Computed from 2026 IRS limits (Notice 2025-67, Rev. Proc. 2025-32) and the SSA wage base.
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Questions
Do bartenders & servers in Wyoming pay state income tax?
Wyoming has no state income tax on wages or self-employment income. Wyoming has no individual or corporate income tax.
Are there other Wyoming taxes for self-employed bartenders & servers?
Wyoming annual report license tax (LLCs and corporations): Applies to registered entities, including LLCs, corporations, limited partnerships, and registered LLPs; a sole proprietor with no registered entity doesn't file it. The tax is due each year with the annual report, which is due in the anniversary month of the entity's formation. It is the greater of $60 or $0.0002 per dollar of assets located and employed in Wyoming, so $60 for entities with $300,000 or less in Wyoming assets.
What is the tipped minimum wage in Wyoming in 2026?
Wyoming uses the federal minimum wage of $7.25 an hour. Employers may pay tipped workers a cash wage of $2.13 an hour as long as tips bring them to the full minimum. Wyoming's own minimum wage is $5.15 an hour (W.S. 27-4-202), but employers covered by the federal Fair Labor Standards Act must pay the federal $7.25. Tipped workers (more than $30 a month in tips) get at least $2.13 an hour in cash, and tips must bring them up to the applicable minimum. Tips belong to the employee (W.S. 27-4-507(a); https://wyoleg.gov/statutes/compress/title27.pdf).
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Sources
- www.wyo.gov/about-wyoming
- www.dol.gov/agencies/whd/state/minimum-wage/tipped
- sos.wyo.gov/faqs.aspx?root=BUS
- wyoleg.gov/statutes/compress/title27.pdf
- wyoleg.gov/2017/Enroll/HB0080.pdf
- wyoleg.gov/2026/Enroll/SF0041.pdf
State and local facts researched from official sources and independently re-checked; last verified October 2026, next scheduled review 2027-01-02. Educational information for 2026, not tax, legal or investment advice. Rules change; check the official sources listed and a tax professional for your situation. Gigaverse AI, Inc. is a financial technology company, not a bank, and not itself a registered investment adviser or broker-dealer.