Individual Income Tax Military

  1. Does Wisconsin tax military retirement income?

  2. Does Wisconsin exempt any portion of military pay?

  3. Are Wisconsin residents serving in the armed forces liable for Wisconsin income taxes?

  4. Are Wisconsin residents serving in the armed forces and stationed outside Wisconsin or overseas liable for Wisconsin income taxes?

  5. Can a Wisconsin resident serving in the armed forces be taxed by any other state on military pay?

  6. Is a resident of another state, who is stationed in Wisconsin on military orders, liable for Wisconsin income taxes on military pay?

  7. Can a Wisconsin resident in the armed forces change their residence (domicile) to another state? If so, how?

  8. I am a Wisconsin resident in the military. My spouse is not a Wisconsin resident and has no Wisconsin income. Which tax return do I file for Wisconsin?

  9. If I am a Wisconsin resident in the armed forces or a resident of another state stationed in Wisconsin on military orders, is my spouse liable for Wisconsin income taxes?

  10. I am in the military and stationed outside Wisconsin. I remain a Wisconsin resident. My spouse, who is also from Wisconsin, is living with me outside Wisconsin. My spouse is not in the military but is earning income outside Wisconsin. Is my spouse still considered a Wisconsin resident and required to pay taxes to Wisconsin on income earned outside Wisconsin?

  11. I am a nonresident service member stationed in Wisconsin. My spouse and I own rental property in Wisconsin and are required to file a Wisconsin return. We wish to file a Form 1NPR using the married filing joint status. Does any of my military compensation get reported on the Form 1NPR?

  12. I am living in another state while in the military. I maintain my Wisconsin residency, but my personal residence during the tax year is located outside Wisconsin. Can I use the rent I paid on my personal residence located outside Wisconsin to calculate the school property tax credit on my Wisconsin income tax return?

Applicable Laws and Rules

This document provides statements or interpretations of the following laws and regulations enacted as of January 22, 2024: secs. 71.01, 71.02, 71.03, 71.04, 71.05 and 71.07, Wis. Stats., secs. Tax 2.01, 2.08 and 3.04, Wis. Adm. Code, Servicemembers Civil Relief Act (P.L. 108-189), Military Spouses Residency Relief Act (P.L. 111-97), Veterans Benefits and Transition Act of 2018 (P.L. 115-407), Veterans Auto and Education Improvement Act of 2022 (P.L. 117-333), 10 U.S. Code §§ 12302 and 12304, 32 U.S. Code § 502, 50 U.S. Code § 4001, and sec. 4001, IRC.

Laws enacted and in effect after this date, new administrative rules, and court decisions may change the interpretations in this document. Guidance issued prior to this date, that is contrary to the information in this document is superseded by this document, according to sec. 73.16(2)(a), Wis. Stats.

Contact Us​

Wisconsin Department of Revenue
Individual Income Tax Assistance
PO Box 8949
Madison, WI 53708-8949
Phone: (608) 266-2486
Fax: (608) 267-1030

The department welcomes your input on our guidance. Submit comments on this guidance document.

Guidance Document Number: 100170

January 22, 2024