Wisconsin Tax
Information for
Retirees
Includes Information on:
• Who Must File
• Provisions Affecting Retirees
• Various Wisconsin Taxes
• 2023 Tax Rates
Publication 106 (2/24)
TABLE OF CONTENTS
Page
1. INTRODUCTION ..........................................................................................................................................3
2. WHO MUST FILE A WISCONSIN INCOME TAX RETURN ..................................................................................3
3. PROVISIONS WHICH MAY AFFECT RETIREES .................................................................................................3
A. Social Security and Railroad Retirement Benefits ............................................................................................3
B. Pensions and Annuities ....................................................................................................................................3
C. Retirement Income Subtraction .......................................................................................................................4
D. Additional Personal Exemption Deduction.......................................................................................................4
E. Homestead Credit .............................................................................................................................................4
F. Estimated Tax Payments ..................................................................................................................................4
4. MEDICAL AND DENTAL EXPENSES ................................................................................................................4
A. Medical Care Insurance ....................................................................................................................................4
B. Long-Term Care Insurance ................................................................................................................................5
C. Medical and Dental Expenses ...........................................................................................................................5
5. DESCRIPTIONS OF WISCONSIN TAXES ..........................................................................................................5
A. Sales Tax ...........................................................................................................................................................5
B. Individual Income Tax .......................................................................................................................................5
C. Real Estate Tax ..................................................................................................................................................6
D. Estate and Gift Tax ............................................................................................................................................6
6. ADDITIONAL INFORMATION ........................................................................................................................6
Back to Table of Contents
Wisconsin Tax Information for Retirees Publication 106
3
1. INTRODUCTION
This publication includes Wisconsin tax information of special interest to retirees, such as the tax treatment of
retirement benefits, various credits and deductions allowable, and the different types of Wisconsin tax.
2. WHO MUST FILE A WISCONSIN INCOME TAX RETURN
You must file a 2023 Wisconsin income tax return if:
Filing status is:
Age as of
December 31, 2023 was:
Gross income (or total gross income of both spouses) during
2023 was:
Single Under 65 $13,460 or more
65 or older $13,710 or more
Married – filing Both spouses under 65 $25,020 or more
joint return One spouse 65 or older $25,270 or more
Both spouses 65 or older $25,520 or more
Married – filing Under 65 $11,920 or more (applies to each spouse individually)
separate return 65 or older $12,170 or more (applies to each spouse individually)
Head of household Under 65 $17,180 or more
65 or older $17,430 or more
If you are a part-year resident or nonresident of Wisconsin, you must file a Wisconsin income tax return if your gross
income (or combined gross income of you and your spouse) is $2,000 or more for 2023.
Gross income includes all income (before deducting expenses) reportable to Wisconsin which is received in the form
of money, property, or services. It does not include items which are exempt from Wisconsin tax. For example, it
does not include social security benefits or U.S. government interest.
3. PROVISIONS WHICH MAY AFFECT RETIREES
A. Social Security and Railroad Retirement Benefits
Social security and railroad retirement benefits are not taxable for Wisconsin.
B. Pensions and Annuities
Generally, the amount of your pension and annuity income that is taxable for federal purposes is taxable for
Wisconsin if you are a full-year resident of Wisconsin. However, retirement benefits received on the account of
a person who was a member of the Wisconsin State Teachers Retirement System, certain Milwaukee city and
county retirement systems, or the federal Civil Service Retirement System as of December 31, 1963, are exempt
from Wisconsin income tax. In addition, all retirement payments received from the U.S. military retirement
IMPORTANT CHANGES
Use this publication in preparing your 2023 tax return. The
sales tax section was updated to reference the new
Milwaukee County and city of Milwaukee sales taxes and links to other resources.
Back to Table of Contents
Wisconsin Tax Information for Retirees Publication 106
4
system (paid by the Defense Finance and Accounting Services) and from the U.S. government that relate to
service with the Coast Guard, the commissioned corps of the National Oceanic and Atmospheric Administration,
or the commissioned corps of the Public Health Service are exempt from Wisconsin income tax. Also see
"Retirement Income Subtraction" below.
Note: If you worked in Wisconsin but are now a resident of another state, payments you receive from a
nonqualified pension or annuity or a nonqualified deferred compensation plan are taxable by Wisconsin unless
(1) the distribution is paid out in annuity form over your life expectancy or for a period of not less than 10 years,
or (2) the distribution is paid in either an annuity form or lump-sum from arrangements known commonly as
"mirror plans." Payments from a qualified plan are not taxable for Wisconsin when received by a nonresident,
even though the payments may be attributable to services performed in Wisconsin.
C. Retirement Income Subtraction
Up to $5,000 of certain retirement income may be subtracted from Wisconsin income if:
• You (or your spouse if married filing a joint return) were age 65 or older on December 31, 2023, and
• Your federal adjusted gross income (FAGI) is less than $15,000. If married, combined FAGI must be less than
$30,000, whether filing jointly or separately.
D. Additional Personal Exemption Deduction
Persons age 65 or older on December 31, 2023, are allowed an additional personal exemption deduction
of $250.
E. Homestead Credit
Retirees age 62 or older or who are disabled and are full-year residents of Wisconsin may qualify for homestead
credit if they meet certain conditions. Homestead credit provides direct relief to homeowners and renters. One
of the qualifications is that your total household income (both taxable and nontaxable income) must be below
$24,680 for 2023. If under age 62 and not disabled, you must have earned income to qualify for the credit.
F. Estimated Tax Payments
If you have income from which Wisconsin tax is not withheld (for example, interest, pension, or annuity income),
you may be required to prepay your tax in installments. Generally, you must pay estimated tax if your tax return
will show a balance due of $500 or more. You may be subject to an interest charge if you do not make required
payments of estimated tax.
4. MEDICAL AND DENTAL EXPENSES
A. Medical Care Insurance
You may be able to subtract all or a portion of the cost of your medical care insurance. "Medical care insurance"
means a medical care insurance policy that covers you, your spouse, and dependents and provides surgical,
medical, hospital, major medical, or other health service coverage (including dental insurance). If you are
receiving social security benefits, the amount paid for medical care insurance includes the amount deducted
from your monthly benefit for Medicare insurance (for example, Parts B and D).
Note: Do not include premiums for medical care or long-term care insurance if you elected to pay those
premiums with tax-free distributions from a retirement plan. In this case, the premiums would have been made
directly to the insurance provider by the retirement plan.
Back to Table of Contents
Wisconsin Tax Information for Retirees Publication 106
5
B. Long-Term Care Insurance
If you paid long-term care insurance costs during 2023, you may be able to subtract all or a portion of the cost
of a long-term care insurance policy which covers you or your spouse. "Long-term care insurance policy" means
a disability insurance policy or certificate advertised, marketed, offered, or designed primarily to provide
coverage for care that is provided in your home or in an institutional or community-based setting. The care must
be convalescent or custodial care or care for a chronic condition or terminal illness.
Note: Do not include premiums for long-term care insurance if you elected to pay those premiums with tax-free
distributions from a retirement plan. In this case, the premiums would have been made directly to the insurance
provider by the retirement plan.
C. Medical and Dental Expenses
For federal tax purposes, you can deduct certain medical and dental expenses you paid for yourself, your spouse,
and your dependents if you itemize your deductions on federal Schedule A (Form 1040). You may deduct the
amount of your medical and dental expenses that are more than 7.5% of your adjusted gross income. For
Wisconsin purposes, the amount of medical and dental expenses that may be claimed on the Wisconsin itemized
deduction credit must be more than 7.5% of your adjusted gross income.
Note:
• If you do not itemize your deductions for federal purposes, you may still be able to take the Wisconsin
itemized deduction credit. In order to take this credit, prepare a federal Schedule A (Form 1040), write
"Wisconsin" at the top, and include a copy with your Wisconsin return.
• The amount of medical care insurance and long-term care insurance claimed as a subtraction from
Wisconsin income may not be used to compute medical and dental expenses for purposes of the Wisconsin
itemized deduction credit.
5. DESCRIPTIONS OF WISCONSIN TAXES
Nonresidents of Wisconsin who are considering moving to Wisconsin after retirement frequently ask about
Wisconsin taxes that may affect them. Following are brief descriptions of the major Wisconsin taxes which affect
individuals.
A. Sales Tax
The Wisconsin sales tax rate is 5%. In addition, most of Wisconsin’s 72 counties have adopted a 0.5% sales tax
and the city and county of Milwaukee have special sales tax rates. See the Sales Tax Rate Chart
for a complete
list of county sales and use tax rates and their effective dates. Details on the Milwaukee County and city of
Milwaukee sales taxes can be found in
Fact Sheet 2414.
Some items are exempt from the sales tax, such as groceries purchased for home preparation of meals,
prescription medications, newspapers, and most subscription sales of magazines.
B. Individual Income Tax
The schedules on the next page show the individual income tax rates for full-year Wisconsin residents for 2023.
Back to Table of Contents
Wisconsin Tax Information for Retirees Publication 106
6
2023 Tax Rate Schedules
Schedule A - For Single Taxpayers or Head of Household
If Taxable Income Is:
The 2023 Gross Tax Is:
but not over –
of the amount over –
$ 13,810
3.50%
$ 0
27,630
$ 483.35
+
4.40%
13,810
304,170
1,091.43
+
5.30%
27,630
304,170 15,748.05 + 7.65% 304,170
Schedule B - For Married Taxpayers Filing Jointly
If Taxable Income Is:
The 2023 Gross Tax Is:
over – but not over – of the amount over –
$ 0 $ 18,420 3.50% $ 0
36,840
$ 644.70
+
4.40%
18,420
36,840 405,550 1,455.18 + 5.30% 36,840
405,550
20,996.81
+
7.65%
405,550
Schedule C - For Married Taxpayers Filing Separately
If Taxable Income Is:
The 2023 Gross Tax Is:
but not over –
of the amount over –
$ 9,210
3.50%
$ 0
9,210 18,420 $ 322.35 + 4.40% 9,210
202,780
727.59
+
5.30%
18,420
202,780
10,498.67
+
7.65%
202,780
Note: Nonresidents and part-year residents of Wisconsin must prorate the levels of income to which the tax
rates apply by the ratio of their Wisconsin income to FAGI.
Wisconsin taxable income is FAGI with certain adjustments. The Wisconsin standard deduction reduces taxable
income. Various credits are available which reduce the tax.
C. Real Estate Tax
The rate of taxation varies with each municipality. You can obtain specific information on the tax rate by
contacting the treasurer of the city, village, or town in which you are interested in locating.
D. Estate and Gift Tax
There is no Wisconsin estate or gift tax.
6. ADDITIONAL INFORMATION
If you have additional questions or need copies of tax forms, you may visit any Department of Revenue office or:
Visit our website . . . revenue.wi.gov
Email . . . DORIncome@wisconsin.gov
Back to Table of Contents
Wisconsin Tax Information for Retirees Publication 106
7
Write . . . Mail Stop 5-77
Wisconsin Department of Revenue
P.O. Box 8949
Madison, WI 53708-8949
Telephone . . . (608) 266-2486
Applicable Laws and Rules
This document provides statements or interpretations of the following laws and regulations enacted as of February
28, 2024: chs. 71 and 77, Wis. Stats., secs. Tax 2.94, 3.085, and 3.095, Wis. Adm. Code, and sec. 213, IRC.
Laws enacted and in effect after this date, new administrative rules, and court decisions may change the
interpretations in this document. Guidance issued prior to this date, that is contrary to the information in this
document is superseded by this document, according to sec. 73.16(2)(a), Wis. Stats.