Does Wyoming Tax Retirement Income?

Wyoming has no individual income tax, so Social Security benefits is not taxed at the state level.

Wyoming does not tax Social Security benefits because it has no individual income tax.

With no state return to file, the only Social Security tax question for a Wyoming retiree is the federal one: depending on combined income, up to 85% of benefits can be taxable on the federal return. Retirees comparing Wyoming with a state that does tax benefits can see the full list in our guide to states that do not tax Social Security.

Wyoming has no individual income tax, so pension income is not taxed at the state level.

Public, private, and military pensions are not subject to any Wyoming income tax.

There is no retirement exclusion to calculate. Wyoming funds itself through sales and use tax, property tax, and severance taxes on coal, oil, and natural gas; the Department of Revenue has excise, property, and mineral tax divisions and no income tax division.

Public and private pensions, annuities, and retirement-plan distributions do not always get the same treatment. The pension comparison lists which states exempt pensions broadly, partly, or only for certain plans.

Wyoming has no individual income tax, so traditional 401(k) and IRA withdrawals is not taxed at the state level.

Traditional 401(k) and IRA withdrawals, Roth conversions, and lump-sum distributions face no Wyoming income tax.

Because Wyoming does not tax the withdrawal, the timing of Roth conversions and required minimum distributions is a purely federal decision for a Wyoming resident. That is one reason retirees convert after establishing Wyoming residency: the conversion income is taxed federally in the year of conversion, but no state layer is added on top.

Every state page on this site runs the same retiree profile so the states can be compared: $30,000 of Social Security, $40,000 withdrawn from a traditional 401(k), and a $20,000 private pension, $90,000 in total.

A single 68-year-old with $30,000 of Social Security, $40,000 from a 401(k), and a $20,000 pension owes no Wyoming income tax on the $90,000. Federal tax still applies to $25,500 of the Social Security and to the pension and 401(k) income.

There is no Wyoming income tax return. Federal AGI is about $85,500 and federal tax is computed as usual, but the state line is $0 for every category of retirement income. A $150,000 traditional IRA withdrawal in the same year adds federal tax and nothing at the state level, and the same is true of a Roth conversion or a capital gain on a brokerage account. A married couple gets the same result. The Wyoming costs that do apply are sales tax on purchases and property tax on the home, both of which are low by national standards.

The same $90,000 profile looks different a state line away. The rows below come from the reviewed 51-state table; each state name links to its own guide.

• Montana: treats Social Security as partially taxed, pensions as partially taxed, and 401(k) and IRA withdrawals as partially taxed, with a top rate of 5.65% and up to $5,500 qualified retirement subtraction.
• Colorado: treats Social Security as partially taxed, pensions as partially taxed, and 401(k) and IRA withdrawals as partially taxed, with a top rate of 4.40% and retirement subtraction up to $20,000 or $24,000.
• South Dakota: has no individual income tax at all.

The income-tax answer is simple, but people move for the wrong reason. If your income is mostly Social Security and a small pension, your current state may already exempt most of it, and the savings from a Wyoming move can be modest compared with the cost of a second home in a high-demand mountain town.

Military retirement: Military retirement pay is not subject to Wyoming income tax. See the military retirement tax map for every state's treatment.

Estate and inheritance tax: Wyoming has no inheritance tax, and its estate tax is tied to a federal credit that no longer exists, so no Wyoming estate tax is due on current deaths. Federal estate tax can still apply.

Selling a home or investments in Wyoming: retirement-income rules do not cover capital gains. See Wyoming capital gains tax before selling appreciated property or a brokerage position in the year you move or retire.

• Confirm the exclusion you are claiming. There is no retirement exclusion to calculate. Wyoming funds itself through sales and use tax, property tax, and severance taxes on coal, oil, and natural gas; the Department of Revenue has excise, property, and mineral tax divisions and no income tax division.
• Part-year residents. If you moved into or out of Wyoming during the year, retirement income is generally allocated to the period of residency, and the former state may still tax distributions received before the move. Document the move date, the new domicile, and where each distribution was received.
• No state withholding to set up. Custodians withhold federal tax only for a Wyoming resident. If you moved from a state that taxes retirement income, stop that state's withholding once residency changes, and keep proof of the move date.
• Federal side. The federal return has its own rules: up to 85% of Social Security can be taxable, the temporary $6,000 federal senior deduction is available for 2025 through 2028 subject to income limits, and Roth conversions are taxed in the conversion year. State exemptions do not change any of that.
• Large one-time distributions. Wyoming makes the timing of Roth conversions and large withdrawals a purely federal question. If you are relocating from a state that taxes retirement income, complete and document the domicile change before the conversion year, because the former state may claim income earned while you were still its resident.

Comparing states before a move? Use the retirement taxes by state table and the moving states tax guide, and read retirement tax planning for how distributions, conversions, and a move are sequenced together.