Updated September 4, 2026. Quick answer: Mostly yes. Wisconsin taxes public, private and federal (non-CSRS) pensions and ordinary IRA/401(k) withdrawals fully, with a narrow exemption only for retirees from a state or local system (or CSRS) who retired before January 1, 1964. Military retirement pay is fully exempt. Two age-based exclusions soften the rest: $5,000 at 65+ (income-capped) and, new for 2025, up to $24,000 single or $48,000 married at age 67+.
Confidence note: high. This page is scoped to pension, IRA and 401(k) taxation specifically. For the state’s full retirement-tax picture (Social Security, tax rates, estate and probate), see how Wisconsin taxes retirement income generally.
How pensions and retirement-account withdrawals are taxed
| Public (state/local government) pensions | Fully taxable, except a narrow exemption for retirees from a Wisconsin state or local retirement system who retired before January 1, 1964, or who were a system member as of December 31, 1963 and retired later. |
|---|---|
| Private (employer) pensions | Fully taxable: Wisconsin taxes whatever amount is taxable for federal purposes. |
| Federal government pensions (FERS/CSRS) | Fully taxable, with the same narrow pre-1964 exemption available only to federal Civil Service Retirement System (CSRS) retirees; FERS does not qualify. No explicit Davis v. Michigan parity language appears in Wisconsin DOR guidance, though federal and private pensions are taxed identically on their face. |
| Military retirement pay | Fully exempt: all retirement payments from the U.S. military retirement system. |
| IRA and 401(k)/403(b) distributions | Fully taxable by default. A narrow exemption applies only to the portion of a distribution attributable to interest from U.S. government securities. |
| General retirement-income exclusion | Two exclusions: $5,000 at age 65+, capped to filers with federal AGI under $15,000 (single/HOH) or $30,000 (married joint); and a new exclusion under 2025 Wisconsin Act 15 for filers 67 and older, up to $24,000 (single) or $48,000 (married, both 67+). |
Coordinate this with your overall retirement plan
An adviser can help weigh how much of a pension or IRA withdrawal to take this year, whether a Roth conversion makes sense before or after a move, and how state tax interacts with the rest of your plan, but that does not replace the numbers in your own return.
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Social Security
Social Security is never taxed by Wisconsin. Social Security has its own rules in every state; see the full breakdown in how Wisconsin taxes retirement income generally.
Statute and sources
Governing citation: Wis. Stat. sec. 71.05(1)(a)/(am)/(an) (pre-1964 and military exemptions); sec. 71.05(6)(b)54 and 54m (retirement-income exclusions).
- Wisconsin Dept. of Revenue, Publication 126: How Your Retirement Benefits Are Taxed
- Wis. Stat. sec. 71.05
Read September 4, 2026.
Related: how Wisconsin taxes retirement income generally · does Wisconsin tax Roth conversions? · Roth conversion taxes, all 51 jurisdictions.
General information drawn from each state’s own published statutes and revenue-department guidance, not legal, tax or financial advice. Figures and exemption amounts are current as of the date in the quick answer, are set by state law, and can change by future legislation; any pending bill named on this page is not yet law. This page cannot see your own return, which governs. We are not a law firm, a tax adviser, or a fiduciary, and this is not personalized advice.