Beginning with the 2025 tax year, Wisconsin added a new retirement-income subtraction that could reduce state taxable income for many older taxpayers.

If you are age 67 or older by the end of the tax year, you may be able to subtract up to $24,000 of qualifying retirement income from your Wisconsin taxable income. Married couples filing jointly may be eligible for up to $48,000if both spouses are at least 67.

For Wisconsin retirees, this creates a new planning opportunity — but there are a few important rules and tradeoffs to understand before automatically claiming it.

What Wisconsin Retirees Should Know About Roth Conversions

A Roth conversion can be a valuable retirement-planning tool, but it also creates an immediate tax consequence.

When money is converted from a traditional IRA to a Roth IRA, the taxable portion of the amount converted is generally included in federal gross income for the year of the conversion.

That's why the real question usually isn't:

“Should I do a Roth conversion?”

It is:

“How much should I convert, and when?”

Are IRA Withdrawals and RMDs Taxable in Wisconsin?

In many cases, yes.

Traditional IRA withdrawals and required minimum distributions are generally taxable federally to the extent they consist of pre-tax money and earnings.

Because Wisconsin generally begins with federal income when calculating Wisconsin taxable income, these distributions will often affect your Wisconsin tax return as well.

But beginning in 2025, some Wisconsin retirees have a new opportunity to reduce the amount of retirement income subject to Wisconsin tax.

How Does Wisconsin Tax Retirement Income?

Wisconsin retirees often assume all retirement income is taxed the same way.

It isn't.

Some types of retirement income are completely excluded from Wisconsin income tax, while other retirement distributions are generally taxable unless a specific subtraction or exemption applies.

Understanding those differences can make retirement tax planning especially valuable.

Is Social Security Taxable in Wisconsin?

For Wisconsin retirees, the answer is good news:

Wisconsin does not tax Social Security benefits.

Even if some of your Social Security is taxable on your federal income tax return, Social Security benefits are excluded from Wisconsin taxable income.

That distinction is important because federal and Wisconsin tax rules do not always treat retirement income the same way.

Parents—don’t miss this. A new program offers $1,000 for children born between 2025 and 2028. Here’s how it works and what to do next.

You’ve handled your finances for decades, but today’s tax rules are more complex than ever. While online tax software works for some people, many boomers prefer the reassurance of working with a real person who understands their unique needs.

Most people know Required Minimum Distributions start at age 73, but very few realize just how big the tax bite can be when they finally kick in.

Most retirees are surprised to learn that Medicare Part B and Part D premiums are income-tested, and the income Medicare uses is from two years ago. That seemingly small detail has created a very expensive trap for a lot of good people.

As retirement changes your daily routine, it also changes how you file your taxes. While you may no longer receive a traditional paycheck, your income sources like Social Security, pensions, and retirement withdrawals can still affect what you owe.

Even the most organized person can slip up on taxes, especially as rules change from year to year. Here are the most common mistakes we see from older taxpayers and how you can protect yourself.

For many retirees, Social Security feels like a well-deserved reward after decades of work.

Between retirement and the age when Required Minimum Distributions (RMDs) begin, there’s often a golden opportunity — a window of lower income that allows retirees to make strategic moves to reduce lifetime taxes. We call this the “trough years.”

Legacy planning is about more than leaving assets — it’s about ensuring those assets transfer efficiently and meaningfully.