Updated October 4, 2026. Quick answer: Yes. Wisconsin taxes 401(k) and IRA withdrawals: its retirement publication calls the treatment “generally the same as the federal tax treatment”. The $24,000 retirement subtraction starts at age 67, so a 65-year-old does not get it.
More state retirement-income schedules, line by line: Wisconsin Schedule SB.
Inherited an IRA? What the state’s own documents say about taxing those withdrawals: Wisconsin tax on inherited IRA withdrawals.
Hold a 403(b) or 457(b)? What the state’s own documents say about taxing those withdrawals: does Wisconsin tax 403(b) and 457(b) withdrawals.
Withdrawing from an IRA or 401(k)? Whether the state withholds tax from it, from its own documents: Wisconsin tax withholding on IRA and 401(k) withdrawals.
Taking money out of your TSP? How the state taxes it, from its own tax documents: Does Wisconsin tax TSP withdrawals?.
Inheriting from, or planning for, someone in this state? Whether the state has an inheritance tax, from its own tax documents: Does Wisconsin have an inheritance tax?.
Contributing to an HSA? How the state taxes it, from its own tax documents: Does Wisconsin tax HSA contributions?.
What Wisconsin does with 401(k) and IRA withdrawals
Publication 126 gives the $24,000 subtraction to individuals “at least 67 years of age”. A separate $5,000 subtraction is for filers 65 or older whose federal adjusted gross income is below the limits in the table.
| Item | What the documents say |
|---|---|
| Treatment | Taxable; the $24,000 subtraction begins at 67 |
| Small subtraction | $5,000 if federal AGI is under $15,000 single or $30,000 joint |
| State rates | 3.50%, 4.4%, 5.3% and 7.65%; the top rate is 7.65% in 2025 and 2026 |
| Source | Wisconsin Department of Revenue, Publication 126 and rate pages |
A $40,000 withdrawal
All $40,000 of a traditional withdrawal is part of Wisconsin income for a 65-year-old with federal AGI above the small subtraction’s limit. The tax it adds depends on your other income and bracket.
Conditions that decide the answer
- The $24,000 subtraction ($48,000 for a couple, both 67 or older) begins at age 67.
- The $5,000 subtraction needs federal adjusted gross income under $15,000 for a single filer, or $30,000 for a couple filing jointly.
- The subtraction applies separately to each spouse.
Single-filer rate schedule
Breakpoints are in dollars, as the instructions print them.
| Rate | 2025 single filer | 2026 single filer |
|---|---|---|
| 3.50% | Up to 14,680 | Up to 15,110 |
| 4.4% | 14,680 to 50,480 | 15,110 to 51,950 |
| 5.3% | 50,480 to 323,290 | 51,950 to 332,720 |
| 7.65% | Over 323,290 | Over 332,720 |
What changes in 2026
The 2026 estimated-tax instructions raise the bracket thresholds; the four rates are unchanged.
Federal rules
The state’s treatment sits on top of the federal one. The IRS explains the federal tax on these withdrawals in Publication 590-B, Distributions from Individual Retirement Arrangements and Publication 575, Pension and Annuity Income.
Related: whether Wisconsin taxes pensions, how Wisconsin taxes retirement income, whether Wisconsin taxes Roth conversions, and the state-by-state table of 401(k) and IRA withdrawal tax.
Find the right next step for your situation
About how much do you have invested? Pick the range that fits; your next step appears immediately below.
Compare vetted advisors for retirement withdrawals
If your portfolio is $250,000 or more, this connects you (free, with no obligation to hire anyone) with 2 to 3 vetted advisors.
Before you start, what actually happens. The matching service is run by WiserAdvisor, an independent advisor-matching company. It opens on their site, asks for your ZIP code and a few questions, and matches you with 2 to 3 vetted advisors. It is free to you.
WiserAdvisor states the service is built for portfolios of $250,000 and above. By submitting, you consent to emails, phone calls and text messages from WiserAdvisor and up to three advisors, so expect to be contacted. Clear Money Guide may earn a referral payment for a qualifying completed form, whether or not you ever hire anyone.
Opens on WiserAdvisor’s site in a new tab.
See how an advisor plans your withdrawals
Price the destination before you decide. The matching service below introduces you to advisers who pay to meet you.
Before you start, what actually happens. The form is run by Kapitalwise, our advisor-matching partner. Kapitalwise sends your details to advisers who pay for the introduction, so expect calls and texts. Clear Money Guide may earn a referral payment through this service, whether or not you ever hire anyone. This is free to you and there is no obligation to hire anyone.
The Kapitalwise form opens here; you stay on this page.
What happens when you press the button
It asks about nine questions: age, investable assets, location; then your name, email and phone number, and verifies the phone by text. Nothing loads and nothing reaches Kapitalwise until you press the button.
Prefer flat-fee or hourly pricing instead? Compare ranges here.
Answer againSources
- How Your Retirement Benefits Are Taxed, Publication 126 (1/26): https://www.revenue.wi.gov/DOR%20Publications/pb126.pdf
- DOR Tax Rates: https://www.revenue.wi.gov/Pages/FAQS/pcs-taxrates.aspx
- 2026 Form 1-ES Instructions, Estimated Income Tax for Individuals, Estates, and Trusts (D-101A R. 1-26): https://www.revenue.wi.gov/TaxForms2026/2026-Form1-ES-Inst.pdf
- 2025 I-111 Form 1 Instructions, Wisconsin Income Tax: 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.