Updated October 4, 2026. Quick answer: No. Wisconsin’s Publication 128 covers “All retirement payments received from the U.S. military retirement system” and says those payments “are exempt from Wisconsin income tax”, including Survivor Benefit Plan payments, with no dollar cap or age printed.
How Wisconsin treats military retired pay
| Item | What the documents say |
|---|---|
| Treatment | Exempt from Wisconsin income tax; subtracted on Schedule SB, line 12 (Form 1) or Schedule M, line 46 (Form 1NPR) |
| Also exempt | Retirement payments tied to service with the Coast Guard, NOAA commissioned corps or Public Health Service commissioned corps, and Survivor Benefit Plan payments |
| Limit | The subtraction cannot be more than the amount included in federal adjusted gross income |
| Cap or age | None printed |
| Rates | The Form 1 tax computation worksheets print 5.3% and 7.65% for the upper brackets; lower brackets were not read |
A $30,000 example
A retiree with $30,000 of military retired pay in federal adjusted gross income subtracts all $30,000 on Schedule SB, line 12, so none of that pay is left to tax.
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What changes in 2026
No 2026 change is printed in the documents read.
Federal rules
The state’s treatment sits on top of the federal one. The IRS explains the federal side in Publication 3, Armed Forces’ Tax Guide.
Related: whether Wisconsin taxes pensions, how Wisconsin taxes retirement income, military retirement pay by state, and the military retirement calculator.
Sources
- Wisconsin Tax Information for Military Personnel and Veterans, Publication 128 (1/26): https://www.revenue.wi.gov/DOR%20Publications/pb128.pdf
- 2025 Form 1 Instructions: https://www.revenue.wi.gov/TaxForms2025/2025-Form1-Inst.pdf
Sources: the primary documents linked above, read on October 4, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.