Wisconsin Tax Rates

Wisconsin administers several statewide taxes that affect individuals and businesses. These taxes support state and local public services. Indinero offers support for tax services for people who refer to this material and need help understanding or managing their compliance requirements.

Income Tax

Wisconsin imposes a personal income tax on residents and on nonresidents who earn income within the state.

Key points:

  • Wisconsin uses a progressive income tax structure with multiple brackets.
  • Tax rates generally range from lower single digit percentages to higher brackets determined by income level.
  • Residents must file a state income tax return if their income exceeds filing thresholds.
  • Wisconsin taxes most forms of income, including wages, interest, and certain business earnings.
  • Credits and deductions are available for specific activities, such as property tax relief or college savings contributions.

Sales Tax

Wisconsin levies a statewide sales and use tax on most retail sales of tangible personal property and selected services.

Key points:

  • The state sales tax rate is 5 percent.
  • Counties may add a local sales tax of 0.5 percent, which brings the combined rate to 5.5 percent in most counties.
  • Some items are exempt, including most groceries and prescription drugs.
  • Many services are not taxed, but certain categories such as telecommunications and lodging are taxable.
  • Businesses must collect sales tax when selling taxable goods or services and must file regular reports with the state.

Property Tax

Property tax in Wisconsin is administered at the local level and is a major source of revenue for schools, municipalities, and counties.

Key points:

  • Property is assessed annually at full market value unless a local exception applies.
  • Local governments set property tax rates, so amounts owed vary by location.
  • Property tax applies to real estate and in some cases personal property used for business purposes.
  • Wisconsin offers several property tax credits or relief programs, which can reduce the final amount owed by eligible taxpayers.

Corporate Tax

Wisconsin imposes a corporate income and franchise tax on corporations doing business in the state.

Key points:

  • The general corporate income tax rate is a flat percentage applied to net taxable income.
  • Most corporations must file an annual return.
  • Wisconsin uses combined reporting for unitary businesses, which means related entities may need to file together when operating under a common business enterprise.
  • Certain credits are available for manufacturing and agricultural activities, research activities, and specific investments.

Excise Taxes

Wisconsin applies various excise taxes on selected goods and activities.

Key points:

  • Excise taxes apply to products such as fuel, alcohol, tobacco, and vapor products.
  • Rates vary by product type and quantity.
  • Businesses that produce, distribute, or sell these goods must comply with licensing and reporting requirements.

Lodging Tax

Lodging taxes are applied at the local level in Wisconsin on short term stays in hotels and similar accommodations.

Key points:

  • Rates differ by municipality.
  • Revenue supports local tourism promotion and related services.
  • Businesses providing lodging must collect and remit this tax to the appropriate local authority.

R&D Offer Quiz

Step 1 of 3

Answer to find out if you're eligible for R&D tax credits.

Do the activities performed relate to a new or improved business component’s function, performance, reliability, quality, or composition?(Required)
For Example: A mid-sized packaging company develops a slightly modified cardboard box design to improve its stacking strength (reliability) for warehouse storage, involving minor adjustments to the corrugation pattern to reduce collapse under standard weight loads.
Is your company trying to discover information to eliminate uncertainty concerning the capability or method for developing or improving a business component?(Required)
For Example: A furniture manufacturer investigates whether a cheaper wood adhesive can hold joints as effectively as the current one during assembly, testing bond strength to resolve doubts about its capability in standard production lines.
Do the activities performed constitute a process of experimentation?(Required)
For Example: An auto parts supplier runs a series of bench tests on different lubricant formulations to find one that reduces friction in engine bearings more effectively, systematically comparing wear rates over simulated operating cycles.