Tool | September 2016

State-by-State Guide to Taxes on Retirees

Our comprehensive guide to taxes on retirement income, property and purchases, as well as special tax breaks for seniors, in every state.


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The Bottom Line
Map of Wyoming

Most Tax-Friendly

One of Kiplinger's top ten most tax-friendly states for retirees, the Equality State is a tax haven for cowboys and retirees alike. There is no state income tax, and the state sales tax is low. Thanks to abundant revenues that the state collects from oil and mineral rights, Wyoming residents shoulder one of the lowest tax burdens in the U.S., according to the Tax Foundation.

State Sales Tax

4% (prescriptions and food for home consumption are exempt). Counties can add up to 3% in additional taxes, but the average total rate is only 5.43%, the third lowest in the country (excluding states that charge no sales tax).

Income Tax Range

Wyoming has no state income tax.

Social Security

Benefits are not taxed.

Exemptions for Other Retirement Income

Retirement income is not taxed.


Retirement income is not taxed.

401(k)s and Other Defined-Contribution Employer Retirement Plans

Retirement income is not taxed.

Private Pensions

Retirement income is not taxed.

Public Pensions

Retirement income is not taxed.

Property Taxes

The state has several property tax relief programs. In 2014, if the value of your assets exceeds $112,420 per adult member of the household, you cannot qualify for the main property tax refund program. Some assets, such as retirement accounts, don't count toward the total. To be eligible for the program, your household income must also be less than the greater of two-thirds of the state or county median household income. For those who meet the eligibility rules, the tax relief is up to half of the median residential property tax or half of the property tax bill, whichever is less. The residency requirement is five years (physically occupying the home for at least six months per year) immediately preceding the tax year in which you apply for the refund.

Median property tax on Wyoming's median home value of $195,500 is $1,195, according to the Tax Foundation.

Tax breaks for seniors: The state has a Tax Rebate to Elderly and Disabled program that is available to those 65 and older who meet certain income requirements. They can receive a refund from the Wyoming Department of Health on property tax, utilities and sales/use tax for up to $800 (single filers) and $900 (married filers).

Inheritance and
Estate Taxes

There is no inheritance tax or estate tax.