State Taxation of Retirement, Pension, and Social Security Income

• employee retirement income from defined benefit plans under IRC 414(j)

• government retirement income from the U.S. and the state

• teacher retirement income from the state

• military retirement income

• law enforcement officer and firefighter retirement income from the state; and

• railroad retirement income

Subtraction from federal AGI for:

• $2,500 of government retirement income from the U.S., the state and its localities

• $3,500 of military retirement income; and

• railroad retirement income

Exclusion from state taxable income for:

• $6,000 of private or public employee retirement income

• military retirement income; and

• railroad retirement income

• $24,000 or amount of retirement income, whichever is smaller, for taxpayers 65 and older

• $20,000 or amount of retirement income, whichever is smaller, for taxpayers 55 through 64 years old

• $4,500 of military retirement income for taxpayers under 55 of age; and

• railroad retirement income

Subtraction allowed equal to:

• 100% of federal taxable benefits if federal AGI is less than $100,000 and filing status is filing jointly, qualifying widow(er), or head of household;

• 100% of federal taxable benefits if federal AGI is less than $75,000 and filing status is single or filing separately; or

• 75% of federal taxable benefits as computed on state Social Security benefit adjustment worksheet. 

• 42% of employee retirement income for single filers with federal AGI less than $75,000 and joint filers with federal AGI less than $100,000

• 50% of teachers' retirement income

• military retirement income; and

• railroad retirement income

• $2,000 or amount of retirement income, whichever is smaller, for taxpayers under 60

• $12,500 or amount of retirement income, whichever is smaller, for taxpayers age 60 or older; and

• railroad retirement income

• $35,000 for taxpayers age 62 to 64

• $65,000 for taxpayers 65 or older; and

• railroad retirement income

• income from employer-funded pension, defined contribution, or defined benefit plans

• government retirement income

• military retirement income; and

• railroad retirement income

• federal government retirement income

• firefighter and police officer retirement income from the state

• military retirement income; and

• railroad retirement income

Subtraction, other than railroad retirement income, limited to:

• $51,498 for joint filers 65 or older; or

• $34,332 for all other filers 65 or older

• income from employee defined benefit plans

• income from IRAs and SEPs

• government retirement income

• military retirement income; and

• railroad retirement income

Subtraction from federal AGI for:

• $6,250 of military retirement income, plus 75% of excess over that amount

• $16,000 of federal service annuity income for taxpayers 62 or older; and

• railroad retirement income

Exclusion from federal AGI for retirement and pension income, including:

• income from defined retirement benefit and annuity plans

• annuity income

• income from IRAs and SEPs; and

• railroad retirement income

Exclusion, other than railroad income, limited to:

• $12,000 for joint filers 55 or older; or

• $6,000 for all other filers 55 or older

Subtraction from federal AGI for:

• government retirement income

• military retirement income

• railroad retirement income

• law enforcement officer and firefighter retirement income from the state; and

• retirement income from the state university system and Washburn University

Subtraction from federal AGI for retirement and pension income, including:

• IRA retirement income

• retirement income from 401(k) and similar deferred compensation plans

• all federal government retirement income; and

• retirement income from the state and its local governments

Subtraction, other than government and military retirement income, limited to smaller of:

• amount of retirement income; or

• $31,110

Subtraction from federal AGI for:

• $6,000 of retirement income for unmarried taxpayers 65 or older

• $12,000 of retirement income for married taxpayers 55 or older filing jointly

• federal government retirement income;

• military retirement income

• retirement income from the state government, teacher, and university retirement systems

• law enforcement officer and firefighter retirement income from the state; and

• railroad retirement income

Subtraction from federal AGI for:

• $10,000 or amount of retirement income, whichever is smaller, from employee benefit plans

• military retirement income; and

• railroad retirement income

• $31,000 of retirement income from employee IRC Sec. 401(a), 403 or 457(b)for taxpayers 65 or older

• $12,000 for married taxpayers age 55 or older filing jointly

• $5,000 of military retirement income for taxpayers up to 55 and$15,000 for taxpayers 55 or older

• $15,000 or taxable amount of retirement income, whichever is less, from the U.S., the state, or localities of the state of for law enforcement officer, firefighter, or rescue and emergency service employees 55 or older; and

• railroad retirement income

• government retirement income from the U.S., the state, or its localities; and

• military retirement income

• income from defined retirement plans

• income from IRC Sec. 401(k)or 403(b) employee contribution plans

• income from IRAs and SEPs

• government retirement income from the U.S., the state, or its localities; and

• railroad retirement income

Subtraction for private and public retirement income limited to:

• $54,404 of retirement and pension income for single filers or $108,808 for joint filers born before 1946

• $15,000 of government pension income exempt from SSA benefits for single filers or $30,000 for joint filers 62-66 of age born after 1952; and

• $35,000 of government pension income exempt from SSA benefits for single filers or $55,000 for joint filers ($70,000 if both joint filers qualify) born after 1952 and retired as January 1, 2013

• military pensions; and

• railroad retirement income

• IRA, SEP, and SIMPLE contributions

• private retirement and pension income

• government retirement income; and

• railroad retirement income

Subtraction from federal AGI for:

• public and private retirement income

• military retirement income; and

• railroad retirement income

Public and private income subtraction limited to:

• $6,000 of private pension income if AGI less than $32,000 for married taxpayers filing jointly, $25,000 for single filers, or $16,000 for married filers filing separately; and

• $39,365 of public pension income if AGI is $100,000 or less for married taxpayers or $85,000 or less for unmarried taxpayers

• $4,400 of pension and annuity income reduced by phaseout if AGI exceeds $36,700; and

• railroad retirement income

• railroad retirement income

• 40% of military retirement for taxpayers who elect to exclude that income for 7 tax years beginning with the year in which the election is made; and

• 15% of military retirement income for all tax years beginning with the year in which taxpayer turns 67 years of age

• retirement income for taxpayers 62 or older if total income for the tax year is less than $100,000

• military retirement income; and

• railroad retirement income

Subtraction, other than military and railroad retirement income, limited to:

• $80,000 for married taxpayers filing jointly

• $60,000 for single taxpayers, heads of household, or qualifying widows(ers); and

• $40,000 for married taxpayers filing separately

Subtraction from federal AGI for:

• $20,000 of retirement and annuity income for taxpayers 59½ or older; and

• government retirement income from the U.S., the state, or its localities

• government retirement income from the U.S., the state, or its localities that was vested by August 12, 1989 (Bailey settlement exemption), excluding local government IRC 403(b) and 457 annuity plans;  

• railroad retirement income; and

• military retirement income for taxpayers who served 20 or more years or retired due to a physical disability

Subtraction from federal AGI for:

• railroad retirement income; and

• military retirement income

• military retirement income; and

• railroad retirement income

• income from IRC 401 employee pension plans

• income from IRC 457 deferred compensation plans

• income from IRAs and SEPs

• income from IRC 403(a) or (b) employee annuities

• lump-sum distributions from IRC 402 retirement plans

• government retirement income from the U.S. or the state

• all U.S. civil service income, instead of social security retirement benefits; and

• railroad retirement income

Private, government, and military retirement income subtraction limited to:

• $10,000 of private and government retirement income; and

• 75% or $10,000 of military retirement income

• government retirement income from the U.S., including military retirement income, based on time of service before and after 1991

• income from IRAs, SEPs, IRC 403(b) employee annuities, and IRC 457 deferred compensation plans previously taxed by another state; and

• railroad retirement income

• employer-sponsored retirement plans

• income from IRAs, SEPs, and Keogh plans;

• government retirement income

• military retirement income

• railroad retirement income

Subtraction allowed for federal taxable benefits, if federal AGI is less than:

• $88,950 for single or head of household filers;

• $88,975 for married filing separately; and

• $111,200 for married filing jointly or qualifying widows(ers).

AGI limits are adjusted annually for inflation.

• income from IRC 401(k), 403(b), and 457 plans;

• military retirement income

• government retirement income from the U.S., state, and local governments

• private-sector pensions

• annuities; and

• railroad retirement income

Subtraction for private, government, and military retirement income limited to $15,000 for taxpayers who have reached the age for Social Security retirement benefits if AGI is less than:

• $87,200 and filing status is single, head of household; $87,225 and filing status is married filing separately; and

• $109,050 and filing status is married filing jointly or qualifying widow(er)

AGI limits are adjusted annually for inflation.

• retirement income from IRC 401, 403, 408, and 457 plans

• government retirement income from the U.S., state, and local governments, including individual retirement plans, Keogh plans, and military retirement income; and

• railroad retirement income

Subtraction private and public retirement income limited to:

• $3,000 for taxpayers under 65; and

• $10,000 for taxpayers age 65 or older

• IRC 401, 408, and 457 retirement income and U.S. government retirement income for which contributions were previously taxed by another state

• military retirement income for taxpayers awarded the Congressional Medal of Honor; and

• railroad retirement income

• $50,000 for a single individual or married individual filing separately; or

• $100,000 for married couple filing jointly.

• $2,000 of retirement income from the U.S. government, the state government, and the state teachers' retirement system

• part of the retirement income under a plan covered by the Pension Benefit Guaranty Corporation (PBGC)

• law enforcement officer and firefighter retirement income from the state and its localities;

• military retirement income; and

• railroad retirement income

Subtraction from federal AGI for:

• $5,000 of retirement income from qualified retirement plans and IRAs for taxpayers age 65 or older if AGI is less than $15,000 for single filers or $30,000 for married filers

• retirement income from the U.S. government, the state teachers' retirement system, and Milwaukee city and county law enforcement, firefighter, and teachers' retirement system

• military and certain other uniformed services retirement income; and

• railroad retirement income