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Wisconsin military pay tax

Wisconsin taxes most military pay, with some exemptions.

Active-duty payPartly exempt
Military retired payRetired pay exempt
E-5 basic pay a year$49,320
BAH and BASNever taxed

Active-duty and reserve pay

Active-duty pay is taxed, but National Guard and Reserve members can deduct pay for qualifying active duty.

An E-5 with over 6 years of service earns $49,320 a year in basic pay, and an O-3 with over 6 years $92,844. In Wisconsin, that basic pay is generally part of state taxable income, apart from the exemptions above. Housing and food allowances are never taxed by any state.

Military retired pay

Military retired pay is exempt.

Your state of legal residence decides

Military pay is taxed by your state of legal residence, usually the state you lived in when you joined or one you later adopted by changing your records, not by the state where you are stationed. This comes from the Servicemembers Civil Relief Act. Spouses can choose to use the member's state of legal residence for their own income too.

See your total pay with state tax

Questions

Does Wisconsin tax military pay?

Wisconsin taxes most military pay, with some exemptions. Active-duty pay is taxed, but National Guard and Reserve members can deduct pay for qualifying active duty.

Does Wisconsin tax military retirement pay?

Military retired pay is exempt.

Is BAH taxed in Wisconsin?

No. BAH and BAS are not taxable income for federal or state tax in any state.

Which state taxes me if I am stationed in Wisconsin?

Under the Servicemembers Civil Relief Act, your military pay is taxed only by your state of legal residence, not the state where you are stationed. If Wisconsin is not your legal residence, Wisconsin does not tax your military pay.

Sources: Air Force benefits office state tax summary, tax year 2025 and Wisconsin tax authority. State rules change often, so confirm with the state before you file.