TaxtirementState guides · WI
How Wisconsin taxes retirement income
- Wisconsin doesn't tax Social Security benefits.
- Exclusions and subtractions for retirement income (details below):
- Retirement income subtraction, age 67+ (2025 Wis. Act 15) — CREDITS RESTRICTED: from age 67, at most $24,000 per person.
- $5,000 retirement income subtraction, age 65+: from age 65, at most $5,000 per person, income limits apply.
- Rates for 2026: 3.5% to 7.65%, graduated.
At a glance
| Income tax | Yes |
|---|---|
| Rates (2026) | 3.5% to 7.65%, graduated |
| Starts from | Federal adjusted gross income (AGI) |
| Standard deduction | $13,960 single, $25,840 married filing jointly |
| Personal exemption | $700 per person |
| Age 65 and older | $250 extra exemption per person |
| Social Security | Not taxed |
| Retirement income exclusions | 2 (see below) |
| Roth conversions | Taxable |
| Capital gains | Special treatment (see below) |
| Local income tax | None |
Tax rates
Brackets apply to Wisconsin taxable income. Other filing statuses are in the rules reference.
| Rate | Single: taxable income | Married filing jointly: taxable income |
|---|---|---|
| 3.5% | $0 to $15,110 | $0 to $20,150 |
| 4.4% | $15,110 to $51,950 | $20,150 to $69,260 |
| 5.3% | $51,950 to $332,720 | $69,260 to $443,630 |
| 7.65% | $332,720 and up | $443,630 and up |
Social Security
Wisconsin doesn't tax Social Security benefits.
Pensions, IRAs and 401(k)s
Retirement income subtraction, age 67+ (2025 Wis. Act 15) — CREDITS RESTRICTED
If the taxpayer (or spouse on a joint return) is at least 67 on Dec 31, subtract up to $24,000 of federally taxable retirement income from a qualified retirement plan or IRA not already subtracted elsewhere (Schedule SB line 16). Joint return with both spouses 67+: up to $48,000 regardless of which spouse received the income. COST: claiming it forfeits EVERY credit on Schedule CR and Form 1 lines 13-20 and 30-35 for the year (itemized deduction credit, school property tax credit, homestead credit, credit for tax paid to other states, etc.) including carryforwards used/generated that year. Engine must compute both ways and take the better result.
$5,000 retirement income subtraction, age 65+ (income restricted)
Per person 65+ on Dec 31: lesser of $5,000 or (taxable IRA distributions + taxable qualified-plan pensions/annuities - amounts already subtracted on SB lines 12-16, including the 67+ subtraction).
Income limit: Federal AGI < $15,000 (single/HOH) or < $30,000 (MFJ; MFS uses both spouses' combined AGI < $30,000). Cliff, no phase-out.
Roth conversions
A Roth conversion counts as taxable income for Wisconsin. Whether a retirement income exclusion can cover part of it depends on the rules above.
Capital gains
30% of net long-term capital gain (held > 1 year) is excluded (60% for farm assets), via Schedule WD; 30% of capital gain distributions if those are the only gains. Net capital loss offsets ordinary income up to $3,000 ($1,500 married filing separately) for taxable years beginning after Dec. 31, 2022, excess carried forward (s. 71.05(10)(c)2.-3.); the old $500 limit applies only to earlier years.
Credits and relief for older residents
- Itemized deduction credit. 5% of (certain federal itemized deductions — medical, interest, charitable, etc. — in excess of the Wisconsin standard deduction) (Schedule 1). Forfeited if the 67+ retirement subtraction is claimed.
- School property tax credit. Renters and homeowners: credit on up to $2,500 of property taxes (max $300) / rent-based table. Forfeited if the 67+ subtraction is claimed.
- Homestead credit (Schedule H). Refundable for low household income; not researched in detail. Forfeited if the 67+ subtraction is claimed.
More detail from our research notes
Brackets and standard deduction are TY2026 values from the 2026 Form 1-ES : rate schedules lines 130-151 (single/HOH $15,110 / $51,950 / $332,720; MFJ $20,150 / $69,260 / $443,630; MFS $10,080 / $34,630 / $221,820) and standard deduction tables lines 108-117 (maximums $13,960 single, $25,840 MFJ, $12,280 MFS, $18,030 HOH; phase-outs from $20,120 / $29,040 / $13,780 / $20,120). Correction 2026-10-02 per research/verification/state-2025/midwest.md (Wisconsin): an earlier note called these TY2025 values; the TY2025 values are brackets $14,680 / $50,480 / $323,290 single-HOH, $19,580 / $67,300 / $431,060 MFJ, $9,790 / $33,650 / $215,530 MFS and standard deduction maximums $13,560 / $25,110 / $11,930 / $17,520 (the 2025 description below). Both are indexed annually for inflation. 2025 Wis. Act 15 (2025-27 budget, signed 2025-07-03, retroactive to 2025) widened the 4.4% bracket (to $50,480 single / $67,300 MFJ) and created the 67+ retirement subtraction. HOH uses the single rate brackets. Tax table below $100,000 taxable income; at $100,000+: single/HOH 5.3% x TI - $586.44 (below $323,290) or 7.65% x TI - $8,183.76; MFJ 5.3% x TI - $781.92 (below $431,060) or 7.65% x TI - $10,911.83; MFS 5.3% x TI - $390.96 (below $215,530) or 7.65% x TI - $5,455.92. Standard deduction is a SLIDING SCALE by Wisconsin income (Form 1 line 7); values above are the maximums. Formula per s. 71.05(22)(dp)2. and (dt) : the maximum less 12% (single), 19.778% (MFJ, MFS) or 22.515% (HOH, until it meets the single amount, then the single formula) of Wisconsin AGI over the start amount; all dollar amounts indexed by August CPI-U (base 2015), rounded to $10. 2025 table check: single = 13,560 - 12% x (income - ~19,550), zero at ~132,550; MFJ = 25,110 - 19.778% x (income - ~28,210), zero at ~155,170; MFS = 11,930 - 19.778% x (income - ~13,390), zero at ~73,710; HOH = 17,520 - 22.515% x (income - ~19,550) until it meets the single amount (~57,210), then follows the single formula. Exemptions ($700 each for taxpayer/spouse/dependents, +$250 each 65+ on Dec 31) are deductions from income. Taxable Social Security is subtracted on Schedule SB. Wisconsin itemized deductions are not allowed (only the 5% itemized deduction credit). 67+ subtraction (s. 71.05(6)(b)54m., 2026 statutes): payments or distributions an individual receives from a qualified plan or an IRA under IRC 408 (so a taxable Roth conversion distribution qualifies on the statute's text), up to $24,000 per individual 67+ (own receipts; a non-67 spouse's income does not count), or $48,000 combined when both joint spouses are 67+ regardless of who received it; fixed amount, not indexed; claiming it bars every s. 71.07 credit for the year (54m.d.).
Pending confirmation
These points were still being confirmed against Wisconsin's published 2026 forms when this page was built. Most are waiting on forms the state publishes around the turn of the year.
2 items
- Bracket edges and standard deduction amounts are TY2026 values printed on the 2026 Form 1-ES ; statute (s. 71.06(1r),(2)(k),(L) indexed from Aug 2024 CPI under (2e)) agrees in structure. Confirm against the 2026 Form 1 instructions (expected Dec 2026, https://www.revenue.wi.gov/Pages/Form/2026Individual.aspx).
- 2026 Pease (pre-TCJA sec. 68) on the itemized deduction credit items above ~$200,000 FAGI is not modeled: 2026 Schedule I thresholds not published (WTB 234 item 12; expected with the 2026 Schedule I, Dec 2026-Jan 2027).
Sources
Every figure comes from these documents, mostly the state's own forms, instructions and statutes.
- 2025 Form 1 instructions: tax table, Tax Computation Worksheet, Standard Deduction Table, $700/$250 exemptions, New-in-2025 67+ subtractionhttps://www.revenue.wi.gov/TaxForms2025/2025-Form1-Inst.pdf
- 2025 Schedule SB instructions: line 4 SS subtraction, line 5 30% capital gain exclusion, line 16 67+ retirement subtraction (credits restricted), line 17 $5,000 subtraction and worksheethttps://www.revenue.wi.gov/TaxForms2025/2025-ScheduleSB-Inst.pdf
- 2026 Form 1-ES instructions: 2026 rate schedules and standard deduction scheduleshttps://www.revenue.wi.gov/TaxForms2026/2026-Form1-ES-Inst.pdf
- DOR Tax Practitioner Fall 2025 Q&A: age-67 subtraction (one spouse 67+: own income only, up to $24,000; credits forfeited); WI DOR Tax Practitioner Fall 2025 Q&A: income from converting a traditional IRA to a Roth IRA may be eligible for the 67+ retirement subtractionhttps://www.revenue.wi.gov/Pages/TaxPro/2026/TaxPractitonerFall2025QandA.aspx
- Wis. Stat. ch. 71 (2023-24 statutes updated through 2025 Wis. Act 247, published Oct. 1, 2026): 71.05(6)(b)54m. 67+ subtraction; 71.05(10)(c) $3,000 capital loss; 71.05(22)(dp),(dt) standard deduction formula and indexing; 71.06(1r),(2)(k),(L),(2e)…https://docs.legis.wisconsin.gov/statutes/statutes/71.pdf
Taxtirement's Wisconsin calculation is also checked against a second, independent implementation on 1,000 random households. How we check our numbers.
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This page summarizes Wisconsin's 2026 rules as Taxtirement applies them, for education and planning. It isn't tax advice, and it doesn't cover every situation (for example part-year residents, businesses or military-only provisions). Rules change; check the state's current instructions, or a tax professional, before you act. Spotted something wrong? Tell us.