5 States That Don’t Tax Retirement Income

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1. Wyoming

Insider Monkey Score: 47

Cost of Living Index: 92.4

Tax-Friendliness: Very Tax-Friendly

Statewide Sales Tax Rate: 4%          

Average Local Tax Rate: 1.441%    

Average Property Tax Rate: 0.55%

Wyoming stands out among the best states in the US for its lack of income tax, meaning retirees enjoy tax-free social security benefits and other retirement incomes. With low sales and property taxes, it’s a haven for seniors. Property taxes are a mere 0.6%, among the nation’s lowest, while sales tax sits at 4%, with a combined rate of 5.36%. Adding to its allure, the cost of living is 7.6% below the national average. With its stunning landscapes and affordable lifestyle, Wyoming beckons retirees seeking tranquility and financial ease.

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