How Wyoming taxes retirement income
Wyoming has no state income tax, so no retirement income is taxed at the state level: not Social Security, not pensions, and not 401(k) or IRA withdrawals. This makes Wyoming one of the more tax-friendly states for retirees. Federal income tax still applies.
Retirement income tax in Wyoming, at a glance
| Income type | Taxed by Wyoming? |
|---|---|
| Social Security | No |
| Pensions | No |
| 401(k) / IRA withdrawals | No |
| Estate / inheritance tax | None |
| Avg. property tax rate | 0.53% of home value |
Does Wyoming tax Social Security benefits?
No. Wyoming does not tax Social Security benefits. That follows automatically from having no state income tax.
Does Wyoming tax pensions and 401(k) or IRA withdrawals?
No. With no state income tax, Wyoming does not tax pension income or withdrawals from 401(k) plans and IRAs. You still owe federal tax on withdrawals from traditional (pre-tax) accounts.
For the mechanics of required withdrawals in retirement, see what is an RMD.
Sources
- Wyoming taxation of retirement income (Social Security, pensions, 401(k)/IRA): Wyoming Department of Revenue / Taxation.