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Railroad Retirement Tier 1 Exclusion in Madison, WI 2026

Calculate your railroad retirement tier 1 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

Railroad Retirement Tier 1 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

Railroad retirees receiving Tier 1 benefits equivalent to Social Security

  • 1Tier 1 benefits taxed like Social Security
  • 2Tier 2 benefits taxed as pension income
  • 3Same provisional income thresholds as Social Security

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

  • !Treating all railroad retirement as fully taxable
  • !Not applying Social Security taxation rules to Tier 1
  • !Missing state tax exclusions for railroad retirement
  • !Forgetting to claim the deduction on your Wisconsin state return (missing 7.65% additional savings)

Required Tax Forms

Form RRB-1099Form RRB-1099-R

File these forms with your federal tax return to claim the railroad retirement tier 1 exclusion. Wisconsin may require additional state-specific forms.

Other Tax Deductions in Madison, WI

Traditional IRA Contribution

Retirement

~$2,076
est. savings

401(k) Contribution

Retirement

~$6,820
est. savings

SEP-IRA Contribution

Retirement

~$20,216
est. savings

Solo 401(k) Contribution

Retirement

~$24,259
est. savings

SIMPLE IRA Contribution

Retirement

~$4,744
est. savings

Retirement Savings Credit (Saver's Credit)

Retirement

~$500
est. savings

Roth IRA Conversion Strategy

Retirement

~$6,739
est. savings

Catch-Up Contributions (50+)

Retirement

~$2,224
est. savings

Railroad Retirement Tier 1 Exclusion in Other Wisconsin Cities

Milwaukee, WI

7.65% state tax

~$4,043
+2,560 vs Madison

Green Bay, WI

7.65% state tax

~$4,043
+2,560 vs Madison

Kenosha, WI

7.65% state tax

~$4,043
+2,560 vs Madison

Racine, WI

7.65% state tax

~$4,043
+2,560 vs Madison

Appleton, WI

7.65% state tax

~$4,043
+2,560 vs Madison

Waukesha, WI

7.65% state tax

~$4,043
+2,560 vs Madison

Eau Claire, WI

7.65% state tax

~$4,043
+2,560 vs Madison

Oshkosh, WI

7.65% state tax

~$4,043
+2,560 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 Railroad Retirement Tier 1 Exclusion Guide

Frequently Asked Questions

How much can I save with the Railroad Retirement Tier 1 Exclusion in Madison, WI?

In Madison, Wisconsin, the railroad retirement tier 1 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 $3,000/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 Railroad Retirement Tier 1 Exclusion in Madison?

Railroad retirees receiving Tier 1 benefits equivalent to Social Security. 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 Railroad Retirement Tier 1 Exclusion in Wisconsin?

To claim the railroad retirement tier 1 exclusion, you need to file Form RRB-1099 and Form RRB-1099-R 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 Railroad Retirement Tier 1 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

Traditional IRA Contribution in Madison

Avg savings: $1,540/year

401(k) Contribution in Madison

Avg savings: $5,060/year

SEP-IRA Contribution in Madison

Avg savings: $15,000/year

Solo 401(k) Contribution in Madison

Avg savings: $18,000/year

SIMPLE IRA Contribution in Madison

Avg savings: $3,520/year

Retirement Savings Credit (Saver's Credit) in Madison

Avg savings: $500/year