Why Wyoming is a Booming Location for Retirees Looking to Cut Taxes
When many people think about retirement, what comes to mind is the sunny beaches of Florida. However, by assuming this is the best location for retiring, you take other fantastic states out of the running. Wyoming is one of the most tax-friendly states for retirees while also being one of the largest states and the least populated. Wyoming also offers a little less hustle and bustle for anyone who wants a quieter life following retirement.
The federal government owns approximately half of the land in Wyoming, largely thanks to it’s Grand Teton and Yellowstone national parks. The largest city in the state is Cheyenne, which is also the state capital and has a population of around 64,000 people. Wyoming has been listed as a Bloomberg tax haven and credited by CNN as the best retirement state due to its taxes, weather, cost of living, and well being.
The Income and Economy of Wyoming
Personal finance site Kiplinger made a list of the most tax friendly states for retirees in 2019, and Wyoming was at the top of the list. The Equality State offers a ton of perks, but one of the top things you can count on is low taxes. Many people are looking to save money after retirement, and Wyoming makes that easier than almost any other state.
This list highlights the many ways that make Wyoming one of the best tax haven states to live in:
- Income Tax: None
- Average Property Tax: $635 for $100,000 in home value
- Inheritance Tax: None
- Estate Tax: None
- Average Local and State Sales Tax: 5.32%
Many people wonder, “does Wyoming have a state income tax?” and as you can see, it does not. And not only is Wyoming property tax also quite low, but local and state sales taxes are minimal compared to other states. Additional Wyoming tax advantages include the lack of inheritance and estate taxes, all of which are useful for someone looking for the perfect state to retire to. All in all, taxes are low in the state and reasonable when they are in place.
Since there is no income tax, all Social Security, pension, and retirement account payments are not taxed by the state. This is another reason it is considered one of the most tax-friendly states in the US today. It also creates additional benefits for retirees who want to make a move to live out their golden years in a state that is brimming with wildlife and natural wonders.
Reasons Wyoming Offers Low Overall Taxes
The most significant reason that Wyoming doesn’t have a state income tax is that most of the state’s bills are paid through revenue from oil, coal, and gas production. The state has no reason to incorporate income taxes, so they don’t do it, which passes the savings on to the residents. When you compare it to the nearby states of Montana and Idaho, this is a massive benefit, since both states have an income tax of 6.9%.
When it comes to Wyoming property taxes, these are also low because the state revenue is provided in other ways. While Idaho has a 0.91% tax rate and Montana has a tax rate of 0.84%, Wyoming’s property taxes are only 0.61%. This makes the state an ideal location for a retiree who wants to buy a home when they relocate. You can get more house with fewer taxes than you would in states on the coasts.
A Selection of Activities to Choose From
While taxes are necessary when choosing a retirement location, it’s also crucial that you select a state that offers plenty to do. Wyoming has that covered, no matter what hobbies you’re interested in. There are national forests for hiking, riding ATVs, and off-roading. There are thousands of lakes, rivers, and streams for those who like to fish. Wyoming’s mountain ranges are famous for their breathtaking scenery. National forests abound, offering access to nature and wildlife available in few other places on earth.
What else can you expect in one of the best tax haven states? Everything from hunting to bird watching, hot springs, and resorts. There is also a large selection of college sports in the state for those who enjoy going to a game or two every season. You’ll find golf courses all over the state as well, which is exceptional for those who prefer to participate in sports rather than watch them.
The Best City to Retire to in Wyoming
While Wyoming as a whole is a tax-friendly state, some areas are more in demand than others. One of the top cities in the state is Jackson Hole, famous for its skiing, fly fishing and access to Yellowstone National Park. It has a population of over 10,000 and the greatest number of medical centers per resident in the entire state. This is an excellent location for those who want to own real estate either to live in yourself or as an investment.
Those who have medical problems will appreciate a large number of healthcare facilities in the town, as well as community-based services for older adults. As an idea of how much Wyoming cares about the aging population, you need only look at the fact that the state has invested more than $5 million since 2003 on senior centers, senior welfare, and programs for aging in place.
Retiring to Wyoming Couldn’t Be Better
Several publications rank Wyoming as the top state to retire, which says a lot. The state has tons of advantages, from low taxes to plenty of outdoor activities and, depending on the area, even inexpensive real estate. If you are ready to retire and want to make the most of both your time and your hard earned savings, Wyoming is a top option that shouldn’t be ignored.