Does Wyoming Tax Social Security and Retirement Income?

Wyoming has no income tax, so Social Security is not taxed

Wyoming does not tax Social Security benefits, because it has no tax on personal income. Title 39 of the Wyoming Statutes, which holds the state’s tax laws, has an income tax chapter made up of a single section, W.S. 39-12-101. It imposes no tax: it reserves the field of income and wage taxes to the state and bars any county, city or town from levying one. There is no state return to file, and only the federal rules decide how much of a benefit is taxed. (Wyoming Statutes, Title 39, Taxation and Revenue (W.S. 39-11-101, 39-11-105(a)(xi), (xxix) and (xliii)-(xlvi), 39-12-101, 39-13-107(b)(iii), 39-13-109(c)(v), 39-15-104, 39-15-105, 39-19-103))

The constitution makes an income tax unattractive to enact. Article 15, section 18 provides that no tax shall be imposed upon income without allowing full credit against it for all sales, use and ad valorem taxes the same taxpayer paid in the year to any taxing authority in Wyoming. The section does not prohibit an income tax, so the absence of one is a matter of statute. (Wyoming Constitution, Article 15, section 18 (full credit against any income tax for sales, use and ad valorem taxes paid))

The federal government is a separate matter. Up to 85% of a benefit can be taxed on a federal return once other income passes fixed thresholds, wherever you live. Our taxable Social Security calculator shows how much of yours is counted.

No Wyoming tax on any pension

Private employer pensions, Wyoming Retirement System benefits, federal civil service annuities and military retired pay are all untaxed, since no Wyoming tax applies to personal income. There is no exclusion to claim, no age test and no income limit. (Wyoming Statutes, Title 39, Taxation and Revenue (W.S. 39-11-101, 39-11-105(a)(xi), (xxix) and (xliii)-(xlvi), 39-12-101, 39-13-107(b)(iii), 39-13-109(c)(v), 39-15-104, 39-15-105, 39-19-103))

A pension earned elsewhere is protected too. Federal law bars a state from taxing the retirement income of a person who is not its resident or domiciliary, and the definition covers qualified pension plans, IRAs, section 457 plans, governmental plans and military retired pay. A pension from a Colorado or California employer is taxed by neither state once the recipient is a Wyoming resident. (4 U.S.C. 114, Limitation on State income taxation of certain pension income)

IRA and 401(k) withdrawals and Roth conversions carry no state tax

Traditional IRA and 401(k) withdrawals, required minimum distributions and Roth conversions are taxed only on the federal return for a Wyoming resident. In our three example households the state income tax is zero whether total income is $75,000 or $290,000. (Wyoming Statutes, Title 39, Taxation and Revenue (W.S. 39-11-101, 39-11-105(a)(xi), (xxix) and (xliii)-(xlvi), 39-12-101, 39-13-107(b)(iii), 39-13-109(c)(v), 39-15-104, 39-15-105, 39-19-103))

The federal protection for out-of-state retirement income has a limit. Nonqualified deferred compensation is covered only when it is paid as substantially equal periodic payments over life or a period of at least 10 years, or from an excess-benefit plan after employment ends. A lump-sum deferred compensation payout outside those cases can still be taxed by the state where it was earned. (4 U.S.C. 114, Limitation on State income taxation of certain pension income)

To size a conversion against federal brackets and Medicare surcharges, see the Roth conversion calculator; for required withdrawals, the RMD calculator.

No state tax on interest, dividends or capital gains

Interest, dividends and capital gains are not taxed by Wyoming. The holdings themselves are also outside the property tax: the list of property tax exemptions includes intangible personal property, and personal property held for personal or family use. A retiree who sells a large position after becoming a Wyoming resident owes federal capital gains tax and no state tax. (Wyoming Statutes, Title 39, Taxation and Revenue (W.S. 39-11-101, 39-11-105(a)(xi), (xxix) and (xliii)-(xlvi), 39-12-101, 39-13-107(b)(iii), 39-13-109(c)(v), 39-15-104, 39-15-105, 39-19-103))

There are no income tax rates, brackets, standard deduction or exemptions, and no age-65 amounts, because individuals do not file an income tax return with the state. (Wyoming Statutes, Title 39, Taxation and Revenue (W.S. 39-11-101, 39-11-105(a)(xi), (xxix) and (xliii)-(xlvi), 39-12-101, 39-13-107(b)(iii), 39-13-109(c)(v), 39-15-104, 39-15-105, 39-19-103))

The one break tied to age is the long-term homeowner exemption. It applies where the owner or the owner’s spouse is 65 or older and one of them has paid residential property tax in Wyoming for 25 years or more, on any residential property. The exemption is 50% of the fair market value of the primary residence, limited to the first $3 million of value, and covers the dwelling and up to 35 acres of associated land. The $3 million limit entered the statute on July 1, 2026, after the deadline for tax year 2026 claims, so it first applies to tax year 2027. A surviving spouse of someone who qualified keeps it. (Wyoming Statutes, Title 39, Taxation and Revenue (W.S. 39-11-101, 39-11-105(a)(xi), (xxix) and (xliii)-(xlvi), 39-12-101, 39-13-107(b)(iii), 39-13-109(c)(v), 39-15-104, 39-15-105, 39-19-103))

The Property Tax Refund Program is open to homeowners of any age but is used heavily by retirees. For 2025 taxes, household income could not exceed the greater of 145% of the county or statewide median: $114,043 in most counties, $122,888 in Laramie County and $203,754 in Teton County. Assets could not exceed $169,866 per adult, not counting the home, one car per adult, retirement accounts and life insurance cash value. Applicants needed five years of Wyoming residency and nine months of occupancy. (Wyoming Department of Revenue: Property Tax Refund Program brochure for tax year 2025 (income and asset limits, June 1, 2026 deadline))

A third program is listed by the Department of Revenue as inactive. The Tax Rebate to Elderly and Disabled, which refunded $100 to $900 of property tax, utility and sales tax costs to residents aged 65 or older under income and asset limits, has been unfunded since 2016 and operates only if the Legislature appropriates money for it. (Wyoming Department of Revenue, Property Tax Division: Current Property Tax Relief/Credit/Deferral Programs (last revised February 2026))

The same three households appear on every state page, so the figures can be compared across states. Each is a full-year resident taking the standard deduction, with no dependents. The figures are state income tax only: any county, city or school district income tax is described on this page but not added in. Pension income is from a private employer, and IRA figures are taxable withdrawals from traditional accounts. The state tax is our calculation from Wyoming's published 2026 rules; it is an illustration, not a return.

These households also owe federal income tax, which is the same wherever they live. The tax bracket calculator and the guide to taxes in retirement cover that side.

As a comparative measure, Tax Foundation figures drawn from Census data put Wyoming property taxes at 0.53% of owner-occupied home value in 2024, 40th among the states. Its county table shows 0.56% in Laramie County (median bill $1,980 on a median home of $348,700), 0.57% in Natrona County ($1,645), 0.56% in Sheridan County ($2,177), 0.60% in Park County ($2,262) and 0.45% in Teton County, where the median bill is $7,267 on a median home of $1,633,900. (Tax Foundation, Property Taxes by State and County, 2026 (comparative figures from Census ACS data))

The low figures start with the assessment ratio. Taxable value is defined as 9.5% of fair market value for all property other than minerals and industrial property, which are assessed at 100% and 11.5%. A home with a fair market value of $600,000 therefore has a taxable value of $57,000 before any exemption, and the local mill levy applies to that figure. (Wyoming Statutes, Title 39, Taxation and Revenue (W.S. 39-11-101, 39-11-105(a)(xi), (xxix) and (xliii)-(xlvi), 39-12-101, 39-13-107(b)(iii), 39-13-109(c)(v), 39-15-104, 39-15-105, 39-19-103))

Annual increases are capped. A single-family residential structure and its improved land are exempt on any assessed value above the prior year’s assessed value plus 4%. The cap does not apply to value added by new construction or additions, or where the owner acquired the property during the prior calendar year; transfers between spouses or into a trust for the prior owner’s benefit are not treated as acquisitions. (Wyoming Statutes, Title 39, Taxation and Revenue (W.S. 39-11-101, 39-11-105(a)(xi), (xxix) and (xliii)-(xlvi), 39-12-101, 39-13-107(b)(iii), 39-13-109(c)(v), 39-15-104, 39-15-105, 39-19-103))

The homeowner exemption removes 25% of the fair market value of a single-family residential structure and its associated improved land, applied only to the first $1 million of value. It first applied to tax year 2025. Beginning with tax year 2026 it is limited to a home where the person claiming it lives at least eight months of the year, with an exception for active-duty military families. The enacted text contains no expiration date. (Wyoming Legislature, 2025 Senate File 69, Homeowner property tax exemption, enrolled act)

On the $600,000 home, the 25% exemption removes $150,000, leaving $450,000 taxed at the 9.5% ratio: a taxable value of $42,750 instead of $57,000. On a $1.5 million home the exemption stops at $250,000. The long-term homeowner exemption would instead remove $300,000 and $750,000. The two cannot be combined: the 25% exemption is unavailable to anyone who received the long-term exemption on the same property that year. (Wyoming Statutes, Title 39, Taxation and Revenue (W.S. 39-11-101, 39-11-105(a)(xi), (xxix) and (xliii)-(xlvi), 39-12-101, 39-13-107(b)(iii), 39-13-109(c)(v), 39-15-104, 39-15-105, 39-19-103))

The Department of Revenue’s February 2026 summary states that notification that a home is owner-occupied is required for the 25% exemption for the 2027 tax year, with a deadline of March 1, 2027, filed through the Department’s website. From 2027 the long-term exemption is claimed with the county assessor by March 1 and must be confirmed every year; for tax year 2026 the claim was due by the fourth Monday in May. The 4% cap needs no application. The same summary reports that the deferral program described below is currently offered only in Teton County. (Wyoming Department of Revenue, Property Tax Division: Current Property Tax Relief/Credit/Deferral Programs (last revised February 2026))

Refunds under the state program are modest outside Teton County. A refund cannot exceed 75% of the prior year’s tax or half of the county’s median residential tax bill, and it is cut to 65% of that maximum when income is between 125% and 145% of the median. The Department’s 2025 county figures put half of the median bill at $796.72 in Laramie County, $608.35 in Natrona County, $894.84 in Sheridan County and $4,369.55 in Teton County. (Wyoming Department of Revenue: County Median Property Tax Calculation Estimate 2025 (maximum refund by county))

The refund application for 2025 taxes was due June 1, 2026, with payments issued by September 30, 2026. Income and asset limits for 2026 taxes, which will be claimed in 2027, had not been published when this page was reviewed, so the 2025 figures above are the latest available. The program is paid from the state general fund and runs only when the Legislature funds it. (Wyoming Department of Revenue: Property Tax Refund Program brochure for tax year 2025 (income and asset limits, June 1, 2026 deadline))

State law also allows counties to defer up to half of the property tax on a principal residence for owners who are over 62, disabled, of limited income, or who bought the home at least 10 years earlier. The statute sets interest at 4% a year, compounded, except that an owner who qualifies only as disabled accrues interest at the three-year average yield on 10-year Treasury bonds plus 1.5 percentage points. Limited income means household income at or below 250% of the federal poverty level for a household of four, adjusted by the county’s cost-of-living index. The deferred tax is a lien on the home, due on sale, transfer or the owner’s death. A county must adopt the program before its residents can use it. (Wyoming Statutes, Title 39, Taxation and Revenue (W.S. 39-11-101, 39-11-105(a)(xi), (xxix) and (xliii)-(xlvi), 39-12-101, 39-13-107(b)(iii), 39-13-109(c)(v), 39-15-104, 39-15-105, 39-19-103))

The state sales tax is 4%: a 3% excise tax plus an additional 1% in place since July 1, 1993. Sales of food for domestic home consumption are exempt, which covers ordinary groceries. Prescription drugs, insulin, oxygen for medical use, hearing aids, eyeglasses, contact lenses, prosthetic devices, mobility-enhancing equipment and durable medical equipment sold under a prescription are exempt as well; over-the-counter drugs are not. (Wyoming Statutes, Title 39, Taxation and Revenue (W.S. 39-11-101, 39-11-105(a)(xi), (xxix) and (xliii)-(xlvi), 39-12-101, 39-13-107(b)(iii), 39-13-109(c)(v), 39-15-104, 39-15-105, 39-19-103))

Counties add general-purpose, specific-purpose and economic development option taxes. The Department of Revenue’s chart effective October 1, 2026 shows a total of 4% in Park and Sublette counties, 5% in Laramie, Natrona and Campbell counties, 5.25% in Goshen County, 6% in Albany, Sheridan and Sweetwater counties and 7% in Teton County. (Wyoming Department of Revenue, Excise Tax Division: Sales/Use and Lodging Tax Rates by Locality, effective October 1, 2026)

Two of those rates change on January 1, 2027. The Department’s chart for that date shows Laramie County, which includes Cheyenne, at 6% with a 1% specific-purpose tax added, and Fremont County at 5.75%. (Wyoming Department of Revenue, Excise Tax Division: Sales/Use and Lodging Tax Rates by Locality, effective January 1, 2027)

As a comparative figure, the Tax Foundation puts Wyoming’s average combined state and local sales tax rate at 5.56% as of January 1, 2026, made up of the 4% state rate and an average local rate of 1.56%. That ranks 43rd in the country. (Tax Foundation, State and Local Sales Tax Rates, 2026 (comparative figures))

Wyoming has no inheritance tax, and its estate tax collects nothing. The statute sets the tax equal to the maximum state death tax credit allowed against the federal estate tax, and says it is intended to take advantage of that credit without increasing the combined federal and state tax on any estate. (Wyoming Statutes, Title 39, Taxation and Revenue (W.S. 39-11-101, 39-11-105(a)(xi), (xxix) and (xliii)-(xlvi), 39-12-101, 39-13-107(b)(iii), 39-13-109(c)(v), 39-15-104, 39-15-105, 39-19-103))

The federal credit that formula depends on no longer exists: section 2011 of the Internal Revenue Code, which provided the credit for state death taxes, has been repealed. A Wyoming estate therefore faces the federal estate tax only, though real estate owned in a state with its own estate tax can be taxed there. (26 U.S.C. 2011, Credit for State death taxes (repealed))

The federal estate tax applies in every state. The estate tax calculator estimates both the federal tax and any state tax.

Proposition 1 on the November 3, 2026 ballot was a citizen initiative to exempt 50% of the assessed value of every qualified homeowner’s primary residence, for owners resident in Wyoming for at least a year who occupied the home six months of the prior year. The ballot language estimated the cost to the state alone at $92.6 million in fiscal year 2028. (Wyoming Secretary of State: 2026 General Election Statewide Ballot Propositions (Proposed Initiative Proposition Number One))

Voters rejected it. The Secretary of State’s official summary shows 80,047 votes for and 105,209 against, with more votes for than against only in Lincoln and Park counties. An initiative needs a majority of all ballots cast in the election to pass. The 25% and long-term exemptions already in statute are unaffected. (Wyoming Secretary of State: Statewide Ballot Propositions Official Summary, General Election, November 3, 2026)

The 2026 budget session revised the long-term homeowner exemption through House Bill 45, signed on March 7, 2026 as Chapter 83 and effective July 1, 2026. Its title describes revising the application deadline and the exemption amount, providing a method to claim the exemption in later years and repealing the exemption’s sunset date, so the exemption is now permanent law. (Wyoming Legislature, 2026 House Bill 45, Long-term homeowner tax exemption-revisions, digest (Chapter 83, Session Laws of Wyoming 2026))

The enrolled act shows what changed. The exemption had been 50% of assessed value with no dollar limit and a claim deadline of the fourth Monday in May. It is now 50% of fair market value, applied only to the first $3 million, with a March 1 deadline, and in later years a claimant keeps it by confirming eligibility with the assessor by March 1. Claims for tax year 2026 were due before the act took effect on July 1, 2026, so the $3 million limit and the March 1 deadline first apply to tax year 2027. (Wyoming Legislature, 2026 House Bill 45, Enrolled Act No. 23: amendments to W.S. 39-11-105(a)(xlv), effective July 1, 2026)

A broader rewrite failed in the same session. Senate File 110 would have set separate assessment rates for residential property, limited certain mills on owner-occupied primary residences and repealed a related exemption. It passed the Senate and was defeated on third reading in the House on March 5, 2026 by 30 votes to 31. (Wyoming Legislature, 2026 Senate File 110, Residential property tax revisions, digest (failed House third reading))

With no income tax, Wyoming has no tax residency test, but several property tax benefits have their own clocks. The 25% and long-term exemptions require living in the home at least eight months of the year. The refund program requires five years of Wyoming residency, the veterans exemption three, and the long-term exemption 25 years of paying Wyoming residential property tax. (Wyoming Department of Revenue, Property Tax Division: Current Property Tax Relief/Credit/Deferral Programs (last revised February 2026))

The motor vehicle code shows how quickly Wyoming treats someone as a resident for registration purposes: a person who remains in the state for 120 days or more, regardless of domicile, and anyone immediately upon registering to vote, filing a homestead or military tax exemption on Wyoming property, or buying a resident hunting or fishing license. (Wyoming Statutes, Title 31, Motor Vehicles (W.S. 31-1-101(a)(xxi): definition of resident))

For someone leaving an income-tax state, federal law settles the retirement income question once the move is real. 4 U.S.C. 114 bars any state from taxing pension, IRA, 401(k) or 457 plan income paid to a person who is not its resident or domiciliary, as determined under that state’s own laws. The former state therefore applies its own residency rules to decide whether the taxpayer left. (4 U.S.C. 114, Limitation on State income taxation of certain pension income)