One Of The Cheapest States To Retire In Is Also A Popular Travel Destination

While dreams of warm beaches and cold drinks may come to mind when it comes to retirement, some retirees may want to consider flying west for the rest of their winters, rather than south. The destination? Wyoming. This Mountain West state isn't only a popular travel destination, but it also ranks as one of the cheapest states in the U.S. to retire. A 2024 study by WalletHub, for example, ranked Wyoming fifth-best in the country for retirement, citing the Equality State's good cost of living and its low tax burden for seniors, as well as other quality-of-life factors.

In addition to being a tax haven for Americans with a fixed income, though, Wyoming is also, as noted, a popular tourist destination. What Wyoming may lack in tropical climate, it more than makes up for in its wide open spaces, gorgeous drives, national monuments, and affordable attractions for adventures of all ages. Yellowstone National Park and Grand Teton National Park, as well as Devils Tower National Monument and Old Faithful are all timeless destinations for travelers and retirees alike.

In a recent Insider Monkey study of the most tax-friendly states to retire in, Wyoming ranked first. It's easy to see why, as the state offers plenty of tax breaks for seniors, including no income tax. This means no income tax on retirement income, including your Social Security.

Further, the financial website, which tracks hedge funds and corporate insiders, notes Wyoming's average effective property tax rate is 0.58%, or 0.41% lower than the national average, 0.99%. And while this wouldn't apply to new retirees who move to Wyoming today, the state has a property-tax deferral program for seniors 65 and older who have paid property taxes in Wyoming for 25 years already.

Some other reasons why Wyoming is among the cheapest states to retire? One is the state's sales tax, which is the fourth-lowest in the country, while groceries are tax-exempt, as are prescription drugs. In addition to these tax breaks, however, Wyoming also has the lowest population in the United States, with 576,851 residents as of the 2020 Census. Compare this to another top retirement destination in Florida, home to some 21.5 million residents. Population, of course, doesn't translate to savings, but Wyoming can offer its residents space and a peaceful environment to go along with its lower cost of living.

Warm beaches, Disney World, and low taxes for retirees, Florida regularly makes best lists of the best and worst states to retire. This said, if you don't want to share your retirement destination with a certain cartoon mouse, consider a different magic kingdom altogether: Wyoming.

The town of Cody, for example, is next door to the beautiful Yellowstone National Park and it's home to 19.8% senior residents. (Note that 15% of Wyoming's population is 65 and older.) Cowboy nostalgia is a big draw for the town of Cody, but so is fishing, kayaking, outdoor activities, and a cost of living 3.3% below the national average. Cody also has 3.9 medical centers, to go with 3.9 recreational centers per 1,000 residents, making it a strong contender for most care and fun per capita in Wyoming.

Another of Wyoming's top retirement-and-tourist destinations is Jackson Hole. Also located near Yellowstone National Park, Jackson Hole offers top spots of the natural-beauty variety, along with a Covered Wagon Cookout sure to delight grandkids. Rawlins, Wyoming, meanwhile, has a cost of living 20% lower than the national average, a median rent of $834, and an active senior center.

In summary, Wyoming is not only among the cheaper states to retire in, it also offers residents the opportunity to experience daily the attractions that draw so many every year. In 2023, for instance, visitors to the Cowboy State spent $4.7 billion, up 2.2% from the year before.