Wisconsin Individual Income Taxes on Military Pay: Military pay received by resident Service members is taxed in Wisconsin.
Wisconsin Income Tax Exemption for National Guard and Reserve Service Members Serving on Active Duty: Military pay received by a reserve component Service member called to federal active duty or special state service under 32 USC 502(f) is not taxed in Wisconsin.
This does not apply to drill pay or pay received for two-week annual training.
Wisconsin Department of Revenue, Individual Income Tax Military, Frequently Asked Questions
Wisconsin Individual Income Taxes Combat Pay Exemption: Military pay that is exempt from federal taxes, such as combat pay, hazardous duty or hostile fire pay, is exempt from Wisconsin taxes.
Learn more about the Wisconsin Individual Income Taxes Combat Pay Exemption
Wisconsin Individual Income Tax Exemption on Death Gratuity: A Department of Defense Death Gratuity paid to the surviving dependent of an active duty Service member that dies in the line of duty is exempt from Wisconsin income taxes.
Learn more about the Wisconsin Individual Income Tax Exemption on Death Gratuity
Wisconsin Income Tax on Military Retired Pay: Military retired pay is not taxed in Wisconsin.
All contributions to the Thrift Savings Plan (TSP) are made using before tax dollars. Distributions from the TSP are tax-sheltered annuity benefits and are taxable by Wisconsin.
Wisconsin Department of Revenue, How Retirement Benefits are Taxed (Publication 126)
Learn more about Wisconsin Income Tax on Military Retired Pay
Wisconsin Individual Income Taxes Extension in Filing Deadline: Any extension of time allowed under federal law for filing a federal income tax return also applies for Wisconsin income tax return.
Learn more about Wisconsin Individual Income Taxes Extension in Filing Deadline
Wisconsin Taxes on Military Disability Retirement Pay: Military Disability Retirement Pay received as a pension, annuity or similar allowance for personal injury or sickness resulting from active service in the U.S. Armed Forces should not be included in taxable income. Some of the payments which are considered disability benefits include:
- Disability compensation and pension payments for disabilities paid to Veterans or their Families
- Grants for homes designed for wheelchair living
- Grants for motor vehicles for Veterans who lost their sight or the use of limbs, or
- Benefits under a dependent-care assistance program.
See IRS Publication 525 for more information.
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When military staff and their families relocate, the services of a Military Relocation Professional who understands their needs and timetables makes the transfer easier, faster, and less stressful.
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