Is Wisconsin a Good State to Retire In?

Wisconsin, a state nestled in the upper Midwest of the United States, offers a diverse landscape characterized by its Great Lakes shoreline, dense northern forests, and rolling southern farmlands. This geographic variety contributes to its distinct seasonal changes and a rich natural environment. Recognized for its dairy industry and friendly communities, Wisconsin provides a unique setting for those considering a new place to call home. Its central location in the country allows for accessibility while maintaining a regional charm.

Retirement Income and Expense Considerations

Understanding the financial implications of retirement in Wisconsin involves examining various income streams and typical expenses. The state applies a progressive income tax structure to many forms of retirement income, though exemptions and deductions exist. Social Security benefits are not subject to state income tax in Wisconsin, regardless of the amount received. This provides an advantage for retirees relying on these federal benefits.

Distributions from qualified retirement plans, such as 401(k)s and IRAs, are taxable at the individual’s ordinary state income tax rate, which can range from 3.50% to 7.65%. Wisconsin offers a subtraction for retirement income. Taxpayers aged 65 or older may subtract up to $5,000 of retirement income if their federal adjusted gross income (AGI) falls below $15,000 for single filers or $30,000 for married individuals filing jointly. Beginning in 2025, a new provision allows individuals aged 67 or older to exclude up to $24,000 of retirement income, including 401(k) and IRA withdrawals and pension payments, from state income taxes, with a married couple potentially excluding up to $48,000.

Private pension income is taxable unless exemptions apply. For public pensions, federal and military retirement benefits may be exempt from state taxation, particularly if service began before January 1, 1964, or if they fall under military retirement pay, which is fully exempt. These exemptions and subtractions can reduce a retiree’s overall state income tax burden. Individuals should consult the Wisconsin Department of Revenue for eligibility requirements.

Property taxes in Wisconsin are assessed at the local level, based on the fair market value of the property. While rates vary by municipality and county, the state offers programs to provide relief. The Wisconsin Homestead Credit is available to eligible residents, including those aged 62 or older, who meet household income thresholds, currently set at less than $24,680 for the year. This credit can reduce a portion of the property tax burden for qualifying homeowners.

The statewide sales tax rate in Wisconsin is 5%. In addition to the state rate, 70 of Wisconsin’s 72 counties impose a 0.5% county sales tax, bringing the combined rate to 5.5% in those areas. As of January 1, 2024, Milwaukee County’s sales and use tax increased to 0.9%, resulting in a combined rate of 5.9%. Tangible personal property and services are subject to sales tax, though common exemptions include groceries and prescription medications.

The overall cost of living in Wisconsin is more affordable than the national average. Housing costs are a factor, with the median home sale price around $317,800, below the national median. The average home value is approximately $262,652, and average rent for a one-bedroom apartment ranges from $1,126 to $1,327 per month.

Utility expenses in Wisconsin are more affordable than the national average. Monthly utility costs for a standard household can range from around $186 to $560, covering electricity, heating, water, and internet. For example, electricity costs average about $106.94 per month. Monthly grocery expenditures for one person range from $221.46 to $386. Transportation costs include public transit options in larger urban areas, with a one-way fare around $2.00 and a monthly pass averaging $61.80. Fuel prices hover around $3.25 per gallon.

Healthcare Infrastructure

Wisconsin features a healthcare infrastructure with hospital systems and medical centers. Major providers such as Aurora Health Care, Froedtert ThedaCare Health Inc., Ascension Wisconsin, UW Health, Marshfield Clinic Health System, Mayo Clinic Health System, and Gundersen Health System operate across the state. These systems include academic medical centers, regional hospitals, and specialized facilities, offering a range of services from primary care to advanced medical treatments. Froedtert and the Medical College of Wisconsin provide the only academic medical center in eastern Wisconsin.

The quality of healthcare in Wisconsin is recognized at a national level. Hospitals in the state rank above the national average in quality ratings from the Centers for Medicare & Medicaid Services (CMS). In a recent assessment, 65% of Wisconsin hospitals received four or five stars from CMS, higher than the national average of 36%. The state has also received rankings for overall healthcare quality from the federal Agency for Healthcare Research and Quality in past years.

Access to care varies between urban centers and rural regions. Larger metropolitan areas like Milwaukee and Madison offer a greater concentration of specialists and advanced medical facilities. The presence of major health systems, often with regional clinics and affiliations, extends access to primary care physicians and specialists across different geographical areas.

The state also provides senior care facilities. These include assisted living communities, which offer support for daily activities, and skilled nursing facilities, providing intensive medical and rehabilitative care. Home healthcare services are also available, allowing individuals to receive care in their own residences. The presence of hospitals and a network of health systems contributes to a healthcare environment for residents.

Climate and Recreational Opportunities

Wisconsin experiences four distinct seasons, each offering opportunities for outdoor activities. The climate is classified as humid continental, marked by changes throughout the year. Summers are warm, with average temperatures in July around 69.2 degrees Fahrenheit, though highs can reach into the 80s. While warm air masses are common, periodic intrusions of cooler air provide relief from the heat.

Winters are cold and snowy, with average January temperatures around 15.3 degrees Fahrenheit, often dropping to 5 degrees or lower. The state receives snowfall, creating a landscape conducive to winter sports. Spring and autumn serve as transitional periods, bringing milder temperatures and natural beauty, particularly with the changing fall foliage. Precipitation patterns show that the state receives most of its rainfall during the warmer half of the year, with June being the wettest month, averaging 4.7 inches of precipitation. The presence of Lake Superior and Lake Michigan also exerts a moderating effect on temperatures in coastal areas.

Wisconsin’s geography, shaped by ancient glaciers, provides outdoor recreational opportunities throughout the year. The state boasts over 15,000 named lakes, including the Great Lakes. These waterways are popular for fishing, boating, and swimming during the warmer months. Networks of hiking and biking trails can be found in state parks and natural areas, allowing for exploration of the varied landscapes.

In winter, the snowy conditions transform the state into a haven for activities such as skiing, snowmobiling, and ice fishing. Natural formations like the Wisconsin Dells and the Driftless Area offer additional scenic attractions.

Beyond outdoor pursuits, Wisconsin offers cultural and community life, particularly in its major cities. Milwaukee, the state’s largest city, is home to the Milwaukee Art Museum, known for its architecture, the Milwaukee Public Museum, and the historic Pabst Mansion. Madison, the state capital, also presents cultural venues and attractions. The state is home to Taliesin, the architectural work of Frank Lloyd Wright in Spring Green.

The state is known for its festivals and community events held throughout the year. Summerfest in Milwaukee is one of the largest music festivals, and the Wisconsin State Fair draws large crowds annually. Communities across the state host festivals celebrating local food traditions, music genres, and cultural heritage, such as the Taste of Madison, Bayfield Apple Festival, and Milwaukee German Fest. These events foster a sense of community and provide opportunities for social engagement.

Transportation options in Wisconsin vary by location. In larger urban areas, public transit systems are available, offering bus services and, in some cases, shared-ride taxi systems. Intercity bus services and Amtrak rail connections provide links between major cities and to neighboring states. In rural and less densely populated regions, reliance on personal vehicles remains common for daily commuting and accessing services.