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+.
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.
Drawing a pension? Whether the state withholds tax from it, from its own documents: Wisconsin tax withholding on pension payments.
Selling your home? How the state taxes the profit, from its own tax documents: Does Wisconsin tax the profit from selling your home?.
A pension earned in another state, or paid after a move, is covered here: does Wisconsin tax out-of-state pensions.
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?.
The Milwaukee ERS payment options and refund rules, from the system’s own handbooks: Milwaukee ERS retirement decisions.
Trusts have their own page: does Wisconsin tax trust income.
Dividends and interest have their own page: does Wisconsin tax dividends and interest.
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?.
Making a gift or planning an estate? The state’s gift tax answer, from its own tax documents: Does Wisconsin have a gift tax?.
Annuity payments have their own page: does Wisconsin tax annuity income.
Planning for what you leave behind? The state’s estate tax answer, from its own tax documents: Does Wisconsin have an estate tax?.
Estimate a Wisconsin Retirement System benefit from age, service and final average earnings: WRS retirement calculator.
Military retired pay has its own page: does Wisconsin tax military retirement.
Saving for a child’s college? The state’s 529 break has its own page: Wisconsin 529 plan tax deduction.
Selling stocks, funds or real estate has its own page: does Wisconsin tax capital gains.
Withdrawals from a 401(k) or IRA have their own page: does Wisconsin tax 401(k) and IRA withdrawals.
The state’s income tax schedule: the Wisconsin 2026 tax brackets (pending).
More on Wisconsin: When Is Probate Required in Wisconsin?
Related state retirement tax guides: Does Wisconsin Tax Social Security? and Wisconsin to Georgia Retirement Taxes.
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.
The rule in the source’s own words. Wisconsin Statutes, section 71.05(6)(b)54m: “may claim the subtraction under this subdivision in an amount not to exceed $24,000 for the taxable year” (source, read October 5, 2026). This page’s governing citation: Wis. Stat. sec. 71.05(6)(b)54m (and 54; 71.05(1)(a)/(am)/(an)).
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+). |
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How our partner relationships workSocial 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.
Figures verified against Wisconsin Department of Revenue Publication 126 (1/26) and Wis. Stat. sec. 71.05 (published September 4, 2026) on September 30, 2026; the statement about Davis v. Michigan language in Wisconsin DOR guidance was not re-checked.
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.