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Education Savings Bond Interest Exclusion in Madison, WI 2026

Calculate your education savings bond interest exclusion tax savings in Madison, Wisconsin. With Wisconsin's 7.65% state tax rate, your combined savings are higher.

Wisconsin Tax Context

State Income Tax
7.65%
Local Income Tax
None
Property Tax Rate
1.78%
Tax Burden
Very High

State capital; University of Wisconsin; very high quality of life

$1,483
Est. Total Savings
No Limit
Max Deduction
Above-the-Line
Deduction Type
29.6%
Combined Tax Rate

Education Savings Bond Interest Exclusion Savings Calculator for Madison

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$

Federal Savings

$1,100

22% bracket

Wisconsin State

$383

7.65% rate

Local Tax

$0

0% rate

Total Savings

$1,483

29.6% combined

At a 29.6% combined tax rate in Madison, every $1,000 in deductions saves you $297 in taxes.

Savings by Tax Bracket in Madison

10%
$883
12%
$983
22%
$1,483
24%
$1,583
32%
$1,983
35%
$2,133
37%
$2,233

Includes 7.65% Wisconsin state tax on top of federal savings.

Eligibility Requirements

Taxpayers who cash Series EE or I bonds for qualified education expenses

  • 1Bonds must be Series EE or I issued after 1989
  • 2Owner must be at least 24 when bond was issued
  • 3Used for qualified higher education expenses
  • 4Income phase-outs apply

Wisconsin residents should verify that this deduction is also recognized on their state tax return for additional savings of up to 7.65%.

Common Mistakes to Avoid

  • !Buying bonds in child's name instead of parent's
  • !Not meeting the age requirement at issuance
  • !Exceeding income limits for the exclusion
  • !Forgetting to claim the deduction on your Wisconsin state return (missing 7.65% additional savings)

Required Tax Forms

Form 8815Form 1040

File these forms with your federal tax return to claim the education savings bond interest exclusion. Wisconsin may require additional state-specific forms.

Other Tax Deductions in Madison, WI

Student Loan Interest Deduction

Education

~$741
est. savings

American Opportunity Tax Credit

Education

~$2,200
est. savings

Lifetime Learning Credit

Education

~$1,500
est. savings

529 Plan Contributions

Education

~$1,348
est. savings

Coverdell Education Savings Account

Education

~$404
est. savings

Educator Expense Deduction

Education

~$89
est. savings

Employer-Required Education

Education

~$4,043
est. savings

Education Savings Bond Interest

Education

~$674
est. savings

Education Savings Bond Interest Exclusion in Other Wisconsin Cities

Milwaukee, WI

7.65% state tax

~$674
-809 vs Madison

Green Bay, WI

7.65% state tax

~$674
-809 vs Madison

Kenosha, WI

7.65% state tax

~$674
-809 vs Madison

Racine, WI

7.65% state tax

~$674
-809 vs Madison

Appleton, WI

7.65% state tax

~$674
-809 vs Madison

Waukesha, WI

7.65% state tax

~$674
-809 vs Madison

Eau Claire, WI

7.65% state tax

~$674
-809 vs Madison

Oshkosh, WI

7.65% state tax

~$674
-809 vs Madison

Calculate Your Full Tax Savings in Madison

Use our free tax calculators to optimize your entire tax return for Wisconsin.

Income Tax CalculatorTaxes in MadisonFull Education Savings Bond Interest Exclusion Guide

Frequently Asked Questions

How much can I save with the Education Savings Bond Interest Exclusion in Madison, WI?

In Madison, Wisconsin, the education savings bond interest exclusion can save you an estimated $1,483 per year. This includes $1,100 in federal tax savings and $383 in Wisconsin state tax savings. The national average savings is $500/year.

What is the Wisconsin state income tax rate for Madison residents?

Wisconsin has a 7.65% state income tax rate. Madison residents have no additional local income tax. State capital; University of Wisconsin; very high quality of life

Who qualifies for the Education Savings Bond Interest Exclusion in Madison?

Taxpayers who cash Series EE or I bonds for qualified education expenses. The eligibility requirements are the same whether you live in Madison or elsewhere in the U.S., as this is a federal tax deduction. However, your savings amount will vary based on Wisconsin's 7.65% state tax rate.

What tax forms do I need to claim the Education Savings Bond Interest Exclusion in Wisconsin?

To claim the education savings bond interest exclusion, you need to file Form 8815 and Form 1040 with your federal return. Wisconsin residents should also check if the state allows this deduction on their state return, which could provide an additional 7.65% savings. Filing status affects your deduction limits and tax bracket.

Is the Education Savings Bond Interest Exclusion better in Madison than in states without income tax?

Yes, Madison residents benefit more because Wisconsin's 7.65% state income tax means the deduction reduces both your federal AND state tax liability. In states with no income tax (like Texas, Florida, or Nevada), this deduction only reduces federal taxes. Your combined rate of 29.6% means more savings per dollar deducted.

Related Calculators

Student Loan Interest Deduction in Madison

Avg savings: $550/year

American Opportunity Tax Credit in Madison

Avg savings: $2,200/year

Lifetime Learning Credit in Madison

Avg savings: $1,500/year

529 Plan Contributions in Madison

Avg savings: $1,000/year

Coverdell Education Savings Account in Madison

Avg savings: $300/year

Educator Expense Deduction in Madison

Avg savings: $66/year