Retiring in Wisconsin: how your income is taxed
Wisconsin is fairly tax-friendly for retirees. On a typical retirement income it ranks #20 of 51 for the lowest state income tax.
The rules in Wisconsin
- Social Security: Social Security and railroad retirement benefits are not taxed.
- Pensions: Since 2025, filers 67 and older can subtract up to $24,000 per person ($48,000 for a couple if both qualify) of qualified retirement income, with no income limit (2025 Wisconsin Act 15). Anyone who claims it can't claim any Wisconsin tax credits that year. An older $5,000 subtraction applies at 65 and older with federal AGI under $15,000 (single) or $30,000 (married). Some government pensions are fully exempt: members of the Wisconsin State Teachers Retirement System, certain Milwaukee systems, or federal CSRS as of December 31, 1963.
- 401(k), 403(b) and IRA withdrawals: 401(k) and IRA withdrawals qualify for the same $24,000-per-person subtraction at 67 and older, with no income limit. Under 67 they are taxed.
- At 65 and older: Each filer 65 or older gets an extra $250 exemption.
Calculate your Wisconsin retirement taxes
State income tax in Wisconsin: $38 a year
In Wisconsin, the 401(k)/IRA amount counts as IRA withdrawals, which don't qualify for the pension exclusion. Enter withdrawals from employer plans such as a 401(k) or 403(b) as pension.
In Wisconsin you'd pay about $38 in state income tax and $4,336 in federal income tax on $70,000 of retirement income, keeping $65,626 (6.2% total).
Wisconsin ranks #20 of 51 for the lowest state tax on this income. 19 states charge no state income tax on this income.
What retirees pay in Wisconsin
| Retirement income | State tax (single) | State tax (married) | Federal tax (single) |
|---|---|---|---|
| $24,000 Social Security, $12,000 401(k)/IRA | $0 | $0 | $0 |
| $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA | $38 | $0 | $4,336 |
| $40,000 Social Security, $40,000 pension, $50,000 401(k)/IRA, $10,000 other income | $2,988 | $1,082 | $19,812 |
Age 67 or older, 2026 rules including the federal senior deduction. For married couples, income is the household total and both spouses are 67 or older. State estimates apply Wisconsin's main exclusions and may differ for income-tested credits.
States with lower retirement taxes
Moving to Wisconsin in retirement?
Compare the tax on your Social Security, pension and 401(k)/IRA income, and typical living costs, with the state you'd leave. These are the states most households moving to Wisconsin come from (IRS migration data, 2022–2023).
- Illinois to Wisconsin
- Minnesota to Wisconsin
- Florida to Wisconsin
- California to Wisconsin
- Texas to Wisconsin
- Michigan to Wisconsin
Frequently asked questions
Does Wisconsin tax Social Security?
Not taxed. Social Security and railroad retirement benefits are not taxed.
Does Wisconsin tax pensions?
Partly taxed. Since 2025, filers 67 and older can subtract up to $24,000 per person ($48,000 for a couple if both qualify) of qualified retirement income, with no income limit (2025 Wisconsin Act 15). Anyone who claims it can't claim any Wisconsin tax credits that year. An older $5,000 subtraction applies at 65 and older with federal AGI under $15,000 (single) or $30,000 (married). Some government pensions are fully exempt: members of the Wisconsin State Teachers Retirement System, certain Milwaukee systems, or federal CSRS as of December 31, 1963.
Does Wisconsin tax 401(k) and IRA withdrawals?
Partly taxed. 401(k) and IRA withdrawals qualify for the same $24,000-per-person subtraction at 67 and older, with no income limit. Under 67 they are taxed.
Is Wisconsin a good state to retire for taxes?
For a single retiree with $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA, Wisconsin charges about $38 in state income tax, ranking #20 of 51 (lowest tax first).
Related
Sources: revenue.wi.gov, taxfoundation.org. Rules reviewed .