Wyoming Tax Benefits for Retirees
Wyoming does not tax any income. That means withdrawals from retirement accounts and pension income are tax-free in Wyoming.
Eligibility and Withdrawal Strategies
You’ll become eligible to receive benefits in Wyoming once you reach age 60 and have at least five years of service. The way to avoid paying too much tax on your pension income is to take only the amount you need each year. The lower the income, the less tax paid.
Tax-Friendly Environment in Wyoming
Wyoming has one of the most favorable tax structures in the US. Since the state does not impose income taxes, you won’t pay state income taxes on pension payouts, social security, and distributions from retirement accounts.
- Wyoming does not have an estate tax or tax inheritance money.
- Wyoming’s property tax rates vary.
Important Tax Information
- 25% of your pension pot can be withdrawn tax-free.
- To use the rule of 85 for early retirement, add your age and service years.
- Wyoming property tax is due on September 1, payable in halves.
States with No Tax on Pensions
Several states, including Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, and Washington do not tax pension income.