Texas vs Wyoming: Business Hiring Cost Comparison (2026)
A $60K employee costs $65,337 in Texas and $65,744 in Wyoming. Texas saves $407/year per hire.
Texas is $407 per year cheaper than Wyoming for a $60,000 employee in 2026, with total employer costs of $65,337 vs $65,744 including all mandatory payroll taxes.
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At a $60,000 salary
Texas saves $407/employee/year
$65,337 in Texas vs $65,744 in Wyoming
Texas
$65,337
1.09x salary
Wyoming
$65,744
1.1x salary
Shareable Insights
SUTA accounts for 56% of the gap
$227 difference in SUTA alone between these states.
Cost Breakdown Comparison
Based on $60,000 annual salary
| Cost Component | TX | WY | Diff |
|---|---|---|---|
| Base Salary | $60,000 | $60,000 | — |
| Social Security (6.2%) | $3,720 | $3,720 | — |
| Medicare (1.45%) | $870 | $870 | — |
| FUTA (0.6%) | $42 | $42 | — |
| SUTA (State Unemployment) | $135 | $362 | -$227 |
| Workers' Compensation | $570 | $750 | -$180 |
| Total Employer Cost | $65,337 | $65,744 | -$407 |
Tax Rate Comparison
| Rate | Texas | Wyoming |
|---|---|---|
| SUTA Rate Range | 0.32% – 6.31% | 0.08% – 8.78% |
| SUTA Typical Rate | 1.5% | 1.07% |
| SUTA Wage Base | $9,000 | $33,800 |
| Workers' Comp Rate | 0.95% | 1.25% |
| State Income Tax | No | No |
What This Means for Employers
For a business hiring at a $60,000 salary, choosing Texas over Wyoming saves $407 per employee per year in employer-side payroll costs alone. For a team of 10, that's $4,067 annually — enough to fund an additional hire or significantly offset operating costs.
The biggest difference comes from SUTA (state unemployment tax) — Texas charges 1.5% on the first $9,000 vs Wyoming's 1.07% on $33,800. The rate difference of 0.43 percentage points is significant because SUTA is levied on every employee and adjusts annually based on your unemployment claims history. Federal taxes — Social Security (6.2%), Medicare (1.45%), and FUTA (0.6%) — are identical in both states and account for the majority of employer tax burden.
These numbers reflect employer-side costs only and don't include benefits, overhead, or the employee's own tax burden. Use the interactive Employee Cost Calculator to model different salary levels and benefits packages.
Choosing Between Texas and Wyoming?
Cost alone favors Texas: At a $60K salary, you save $407 per employee — a real number that compounds across a growing team. At 20 employees, that's $8,133/year before factoring in any raises.
When Wyoming might still make sense: If your business depends on talent concentrated in Wyoming — tech workers, finance professionals, specialized trades — the labor market access may outweigh the payroll cost premium. Remote-friendly roles, however, make the $407/employee savings a strong argument for Texas-based registration.
What this comparison doesn't capture: State income tax (employee side) affects your offer competitiveness — employees in high-tax states need higher gross pay to net the same take-home. Texas has no state income tax; Wyoming has no state income tax. This affects what salary you need to offer to attract equivalent candidates.
State Employment Profiles
Texas
Texas has no state income tax, a minimal $9,000 SUTA wage base, and no paid family leave or disability insurance mandates — a primary reason it consistently ranks among the lowest employer-cost states.
energy & petrochemicals, technology (Austin/Dallas), financial services
Texas has absorbed massive corporate relocations from California (Tesla, Oracle, HP Enterprise); in Austin especially, California-level compensation expectations have followed these moves.
Wyoming
Wyoming has no state income tax, a $30,900 SUTA wage base with very low typical rates, and no paid family leave mandate, making it among the lowest employer-overhead states.
energy (coal, oil, natural gas), tourism (Yellowstone), ranching & agriculture
Wyoming's energy sector creates wide wage variance; skilled oil field workers earn 2-3x the statewide median, which affects employer ability to recruit for lower-wage roles in non-energy industries.
Employer Environment in Each State
Key factors that shape employer costs beyond the numbers above
- No state income tax — employees keep more of their paycheck, a recruiting advantage
- SUTA rate 1.5% (wage base $9,000) — in line with national average
- Workers' comp rate 0.95% — near national average, varies by industry classification
- No state income tax — employees keep more of their paycheck, a recruiting advantage
- Low SUTA rate (1.07% on $33,800 wage base) — below-average unemployment insurance cost
- Workers' comp rate 1.25% — near national average, varies by industry classification
Hiring Strategy Takeaway
The $407 per-employee cost gap at $60K salary is primarily driven by SUTA rates (TX: 1.5% vs WY: 1.07%). For a growing business, this difference compounds quickly — a 10-person team in Texas costs $4,067 less annually than the same team in Wyoming, before accounting for benefits, overhead, or salary-level differences.
Explore Each State
Cost Comparison at Different Salary Levels
How the gap changes from $30K to $150K
| Salary | TX Total | WY Total | Difference |
|---|---|---|---|
| $30,000 | $32,757 | $33,033 | -$276 |
| $40,000 | $43,617 | $43,964 | -$347 |
| $50,000 | $54,477 | $54,854 | -$377 |
| $60,000 | $65,337 | $65,744 | -$407 |
| $75,000 | $81,627 | $82,079 | -$452 |
| $100,000 | $108,777 | $109,304 | -$527 |
| $125,000 | $135,927 | $136,529 | -$602 |
| $150,000 | $163,077 | $163,754 | -$677 |
Click any amount to see the full cost breakdown for that salary and state. Amounts shown from the perspective of TX.
What About Startup Costs?
Hiring is one piece. See what it costs to actually open in these states.
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