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Military Retirement Pay Exempt in Full

Every dollar of U.S. military retirement pay — and Survivor Benefit Plan payments — is exempt from Wisconsin income tax.

Verified August 19, 2026

What this benefit is

Every dollar of U.S. military retirement pay — and Survivor Benefit Plan payments — is exempt from Wisconsin income tax.

What it's worth: The whole of your military retired pay, exempt

The saving is your marginal state rate applied to the amount exempted, so it depends on your bracket.

Who is entitled to it

You receive military retired pay.
Your home is in Wisconsin.

Not sure whether that describes you?

Answer a few questions about this benefit specifically — we only ask what this one actually depends on, and we stop as soon as we know.

How to claim it

Deadline: April 15, with your return

1Subtract the qualified payments on Schedule SB with Form 1 (or Schedule M with Form 1NPR).
2Do not also run military retirement through Wisconsin’s general retirement subtractions — the Department says exempt military benefits may not be claimed under those.

File with: The Wisconsin Department of Revenue, with your annual return
Documents you will need: form 1099 r
Annual: Claimed once a year.

Worth knowingThe exemption reaches the Survivor Benefit Plan and the Retired Serviceman’s Family Protection Plan, and the retirement systems of the Coast Guard, the NOAA commissioned corps and the Public Health Service commissioned corps — the uniformed services beyond the four everyone remembers.

Sources

authority · published policyWisconsin Department of Revenue — Individual Income Tax, Retired Persons (Wis. Stat. §71.05(1)(am), (an))

Why only one source type: The Department of Revenue's own guidance states the exemption in terms, including the statutory cites. docs.legis.wisconsin.gov refused the connection, so the statute could not be read directly.

This finder provides an informational match, not a government eligibility determination. The responsible agency decides your application.