Wisconsin DOR Publishes Guidance on Retirement Benefits Taxation

The Wisconsin Department of Revenue (DOR) has published revised guidance on how retirement benefits are taxed in the state. The publication outlines the general rule that retirement benefits taxable at the federal level are also taxable in Wisconsin, but it details several exceptions where certain benefits may be partially or fully exempt from Wisconsin income tax, such as railroad retirement benefits, social security benefits, and certain retirement system payments, while also introducing new subtractions for qualifying retirement income based on age and income level, effective for the 2025 tax year. [Wis. Dep’t of Revenue, Publication 126, 01/26/26]

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