WI · Tax Year 2026
How Wisconsin taxes Social Security, pensions, 401(k)/IRA withdrawals, and military retirement pay in 2026.
$24,000 qualifying retirement subtraction; $48,000 joint if both spouses age 67+; alternative $5,000 low-income subtraction
New larger subtraction requires age 67+; $5,000 alternative age 65+ with FAGI below $15,000/$30,000 married
Additional Notes
Claiming larger subtraction disallows Wisconsin income tax credits
Does Wisconsin tax Social Security benefits?
No. Wisconsin does not tax Social Security retirement benefits.
Does Wisconsin tax pension income?
Partially. Wisconsin provides exemptions for certain types of pension income — often public, government, or military pensions — while private pensions may be partially or fully taxable. See eligibility details above.
Does Wisconsin tax 401(k) and IRA withdrawals?
Yes, traditional 401(k) and IRA withdrawals are generally taxable in Wisconsin. However, exclusions or credits may apply depending on your age and income — review the details above.
Is Wisconsin a tax-friendly state for retirees?
It depends on your income mix. Wisconsin offers some retirement income relief, but the rules vary by income type and eligibility. Review the details above and consider consulting a tax professional for your specific situation.
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Data Source
Official Wisconsin state tax authority guidance. Tax year 2026. Some annually indexed thresholds may not yet be finalized — confirm with the state revenue department before filing.
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Data reflects tax year 2026 rules sourced from official Wisconsin state tax authorities. This page is for informational purposes only — always confirm current rules with the state revenue department or a qualified tax professional before making financial or relocation decisions.