1099 Contractor in Wyoming with a South Dakota Client: Where Do You File?
Answer
No state income tax applies. Wyoming and South Dakota both levy none on earned income, so your self-employment profit escapes state tax entirely. Nothing is withheld from a 1099 in any case, and here there is no state estimated payment to make and no state return to file.
Last verified
The recurring 1099 question is whether a client in another state drags you into that state's tax system. Here the question is doubly moot: South Dakota has no personal income tax, and neither does Wyoming.
What you file
There is nothing to file in either Wyoming or South Dakota on these wages. Your federal return is unaffected — the federal government taxes the income whatever the states do.
The two states, side by side
| Wyoming | South Dakota | |
|---|---|---|
| Taxes wages | No | No |
| Reciprocity partners | None | None |
| Convenience rule | No | No |
| Nonresident return | Not applicable | Not applicable |
| Credit for other-state tax | No income tax | No income tax |
| Nonresident safe harbour | Not applicable | Not applicable |
| Local income tax | No | No |
| Revenue department | Wyoming Department of Revenue | South Dakota Department of Revenue |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in South Dakota and working in Wyoming gives:No state income tax either side.
Same two states, different situation
The withholding answer turns on how you are paid and where the work happens, not only on which two states are involved.
- W-2 commuter: Wyoming → South DakotaNo state income tax either side
- Remote worker: Wyoming → South DakotaNo state income tax either side
- Moved mid-year: Wyoming → South DakotaNo state return either side
Other Wyoming pairs
Questions people actually ask
I live in Wyoming and my client is in South Dakota. Do I have to file a South Dakota tax return?
No state income tax applies. Wyoming and South Dakota both levy none on earned income, so your self-employment profit escapes state tax entirely. Nothing is withheld from a 1099 in any case, and here there is no state estimated payment to make and no state return to file.
Do reciprocity agreements help a 1099 contractor?
No. Every state reciprocity agreement in the country is an arrangement about wage withholding between two revenue departments, and a 1099 has no withholding to switch off. Whether Wyoming and South Dakota hold an agreement makes no difference to a self-employed filer — sourcing rules decide the answer instead.
How current is this?
The Wyoming and South Dakota rules on this page were last checked against Wyoming Department of Revenue and South Dakota Department of Revenue on 2026-08-07. We re-check the full grid every December after state legislative sessions close, and re-check the convenience-of-the-employer states quarterly because that is where the rules move fastest.
Sources
Every fact above comes from the revenue department that publishes the rule. We do not cite secondary summaries, and we do not restate a figure we could not find at source.
- Wyoming Department of Revenue — individual income taxaccessed 2026-08-07
- South Dakota Department of Revenue — individual income taxaccessed 2026-08-07