The bill would exempt the first $100,000 of retirement income for individuals age 67 or older and the first $150,000 for married-joint filers. Currently, nine other states do not tax income earnings at all, and a handful of states including Illinois, Mississippi, Pennsylvania and Iowa explicitly do not tax retirement income such as IRAs, 401(k) plans and pensions. By joining with these states, Wisconsin will be better poised to attract new employees and retain retirees.