Wisconsin retirement taxes in 2026: what retirees pay

Wisconsin taxes income on graduated brackets, but it leaves Social Security benefits alone completely. For retirees, the main feature is an age-based exclusion. Once you reach the qualifying age, you can leave part of your income from qualified plans and IRAs off your Wisconsin return, and Roth conversions count as that kind of income. On a joint return where both spouses qualify, each spouse gets their own share of the exclusion. There's a catch: claiming the exclusion means giving up every Wisconsin credit for that year. The figures below show how the exclusion and the brackets fit together.

Wisconsin retirement taxes at a glance (2026)

Wisconsin income tax rates for 2026

Single filers 1 (the brackets rise with inflation each year):

Married couples filing jointly 1:

How Wisconsin treats retirement income

Each person 67 or older may exclude up to $24,000 of retirement income. 4 Qualified-plan and IRA income, Roth conversions included, up to $24,000 for a person 67 or older, $48,000 for a joint return when both are (Wis. Stat. 71.05(6)(b)54m); claiming it gives up every Wisconsin credit that year. 4

What three retirees would pay in Wisconsin

These are estimates from Monte Climb's planner on 2026 law, for three example households. They start, as the app does, from federal taxable income: the 2026 standard deduction plus the extra amount at 65 5, the taxable part of Social Security 6 and the senior deduction 7. Those federal deductions are already taken off, and most states allow less of their own, so Wisconsin's real bill can be higher than shown.

• A single retiree, 67 with $54,000 of income would owe about $0 to Wisconsin, after $24,000 of retirement income is excluded and $11,300 of taxable Social Security is left out.
• A married couple, both 67 with $106,000 of income would owe about $0 to Wisconsin, after $48,000 of retirement income is excluded and $35,700 of taxable Social Security is left out.
• A married couple, both 62, before Social Security with $76,000 of income would owe about $1,746 to Wisconsin.

The same couple next door

The married couple, both 67, with $106,000 of income, in Wisconsin and the states around it:

Every figure here starts from federal taxable income, as above, so a state whose own deductions are smaller can tax more than shown.

What these estimates leave out

• Wisconsin's own standard deduction, exemptions and credits: the estimate starts from federal taxable income instead, which takes off the larger federal deductions.
• City income taxes, and capital gains rules a state applies apart from its rate.
• Rules for military and public-employee pensions that some states treat separately.

What this means for your plan

In Wisconsin, the timing of withdrawals and conversions affects your state tax. Income from qualified plans and IRAs can be covered by the exclusion once you reach the qualifying age, but the exclusion and the state's credits can't both be claimed in the same year. Whether it's worth claiming depends on how big your withdrawals are compared with the credits you'd give up, and that can change from year to year. Monte Climb applies these Wisconsin rules to your own plan, so you can see how each year might work out.

Sources

1. Wisconsin income tax for 2026 (Monte Climb's audit grades it high)
2. Wisconsin: a further official source for the 2026 tables
3. Wisconsin: a further official source for the 2026 tables
4. Wisconsin's retirement-income rule: Wis. Stat. 71.05(6)(b)54m
5. Rev. Proc. 2025-32 §4.14(1) and §4.14(3): the 2026 standard deduction and the additional amount at 65
6. IRC §86 and IRS Publication 915: how much of Social Security is taxable (thresholds set by statute, not indexed)
7. P.L. 119-21 (One Big Beautiful Bill Act) §70103: the $6,000 deduction for each person 65 or older, 2025–2028

Figures computed by code from Monte Climb's 2026 state tables (snapshot f024e17). An illustration, not tax advice.

Frequently asked questions

Does Wisconsin tax Social Security?

In 2026, Social Security is not taxed in Wisconsin.

What is Wisconsin's income tax rate in 2026?

Wisconsin has 4 brackets from 3.5% to 7.65% for 2026.

How much state tax would a retired couple pay in Wisconsin?

A married couple, both 67, with $106,000 of Social Security, pension and IRA income would owe about $0 to Wisconsin in 2026, by Monte Climb's estimate.