Does Wyoming tax Social Security benefits?

No. Wyoming has no state income tax of any kind, so Social Security benefits are completely exempt from state taxation. The only tax that may apply is federal, depending on your combined income.

Does Wyoming tax pension and 401(k) income?

No. Pensions, IRA distributions, and 401(k) withdrawals are not subject to any Wyoming state income tax because the state levies no income tax at all. Federal income tax may still apply to these distributions.

Is Wyoming a good state to retire in for taxes?

Wyoming is one of the most tax-friendly states for retirees. There is no state income tax, no tax on retirement income, and no estate or inheritance tax. Property and sales taxes are also relatively low.

Will I still owe federal tax in retirement?

Yes. Wyoming's lack of a state income tax does not affect federal tax. Federal income tax still applies to pension, IRA, and 401(k) withdrawals, and up to 85% of Social Security benefits can be taxable federally.

Does Wyoming have an estate or inheritance tax?

No. Wyoming has neither an estate tax nor an inheritance tax. Heirs receive assets free of any Wyoming death tax, though the federal estate tax can apply to very large estates above the federal exemption.

Wyoming Retirement Income Tax Calculator

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How Wyoming taxes your retirement income

Wyoming is one of the nine U.S. states with no state income tax. That means every common retirement income stream — Social Security, employer pensions, IRA distributions, and 401(k) withdrawals — is fully exempt from Wyoming state tax. This tool confirms your $0 state tax and estimates the federal tax that still applies, so you can see your true after-tax retirement income.

How it works

Because Wyoming has no income tax, the state side is straightforward:

Wyoming state tax on all retirement income = $0

The federal side is where tax can still apply. Social Security has a special inclusion rule based on “combined income” (AGI + nontaxable interest + half of benefits):

Up to 50% of benefits are taxable once combined income passes the first threshold.
Up to 85% of benefits are taxable above the second threshold.

Pension, IRA, and 401(k) withdrawals are generally fully taxable at the federal level. The calculator estimates the federal tax using the standard deduction and the marginal brackets for your filing status.

Notes and example

Suppose you receive $24,000 in Social Security, a $30,000 pension, and take $20,000 from a 401(k). Wyoming taxes none of the $74,000. Your federal bill depends on how much of the Social Security is includable and where the taxable total lands in the brackets. This is an estimate — confirm specifics with a tax professional or the IRS. Wyoming itself confirms there is no individual income tax at revenue.wyo.gov.