Does Wisconsin tax pensions and retirement income?
Taxed, with a retirement exclusion
Partly. Wisconsin taxes the same pension income that is taxable federally, but from 2025 people 67 or older can subtract up to $24,000 ($48,000 for a couple), and a $5,000 subtraction applies at 65 for lower incomes.
In the state's own words
Copied word for word from the official document linked below each quote:
“The amount of your pension that is taxable on your federal income tax return is also taxable on your Wisconsin income tax return.”
And Social Security?
No. Wisconsin does not tax Social Security. The Wisconsin Social Security page quotes the rule.
Federal tax still applies
Whatever Wisconsin does, pensions, annuities and traditional IRA or 401(k) withdrawals are generally taxable on your federal return. See the federal tax brackets and, if you are 73 or older, the required minimum distribution calculator.
State rules change, and the details (age limits, income limits, which plans qualify) matter. Check with the Wisconsin Department of Revenue before you file or move.
Other states in the same group
Check our work
The answer above comes from this document. Follow the link and compare.
- Publication 126: How Your Retirement Benefits Are TaxedWisconsin Department of Revenue. Read on November 12, 2026.