Live in Iowa, Work Remotely for a Wyoming Employer: Who Taxes You?
Answer
Your home state takes it and the work state does not. Wyoming levies no tax on wages; Iowa taxes residents on all income regardless of where it was earned. The result is a single Iowa resident return covering the full amount, with no offsetting credit.
Last verified
Crossing into a state with no income tax does not lower your tax bill, because your home state is not taxing you on where you work — it is taxing you on where you live. Iowa reaches all of a resident's income, and Wyoming adds nothing on top.
What you file
- 1Resident return · Iowa
File a Iowa resident return reporting all of your income.
The two states, side by side
| Iowa | Wyoming | |
|---|---|---|
| Taxes wages | Yes — flat | No |
| Reciprocity partners | 1 (Form 44-016) | None |
| Convenience rule | No | No |
| Nonresident return | Form IA 1040 with Schedule IA 126 | Not applicable |
| Credit for other-state tax | Form IA 130 | No income tax |
| Nonresident safe harbour | None published | Not applicable |
| Local income tax | Yes | No |
| Revenue department | Iowa Department of Revenue | Wyoming Department of Revenue |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Wyoming and working in Iowa gives:No state income tax on your wages.
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: Iowa → WyomingHome state only
- 1099 contractor: Iowa → WyomingHome state only — estimated payments
- Moved mid-year: Iowa → WyomingOne part-year return — the state you left
Other Iowa pairs
Questions people actually ask
I live in Iowa and work remotely for a Wyoming employer. Which state do I pay?
Your home state takes it and the work state does not. Wyoming levies no tax on wages; Iowa taxes residents on all income regardless of where it was earned. The result is a single Iowa resident return covering the full amount, with no offsetting credit.
Which state should my employer be withholding for?
Iowa. Your employer should withhold Iowa tax rather than Wyoming tax on these wages. If a Wyoming line is showing on your pay stub, raise it with payroll now rather than at filing time.
How current is this?
The Iowa and Wyoming rules on this page were last checked against Iowa Department of Revenue and Wyoming 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.
- Iowa Department of Revenue — individual income taxaccessed 2026-08-07
- Wyoming Department of Revenue — individual income taxaccessed 2026-08-07