No state income tax
How Wyoming taxes retirement income
Wyoming has no personal income tax, so the state takes nothing from your Social Security, your pension or your withdrawals from a 401(k), 403(b), 457(b) or IRA. That holds no matter where the pension comes from: a Wyoming plan, another state’s teacher system, a company pension or the federal government.
Wyoming funds itself largely through mineral revenue, sales tax and property tax. Property taxes are low by national standards.
Federal income tax still applies everywhere. Your pension and traditional retirement account withdrawals are taxed by the IRS as ordinary income, and up to 85% of your Social Security can be taxable federally depending on your other income.
Questions
Does Wyoming tax pensions?
No. Wyoming has no personal income tax, so pensions of every kind are free of state tax.
Does Wyoming tax Social Security?
No. With no income tax, Social Security benefits are not taxed by the state.
If I move to Wyoming, can my old state still tax my pension?
No. Federal law (4 U.S.C. 114) bars states from taxing the pension income of people who no longer live there, including government pensions and most retirement plan payments.