Wisconsin taxes your income at rates between 3.54% and 7.65%, depending on how much you earn
Wisconsin has a progressive income tax system, meaning the tax rate increases as your income increases. You do not pay one flat rate on all your income — instead, your income is divided into brackets, and each bracket is taxed at its own rate. For the 2024 tax year, Wisconsin has five tax brackets ranging from 3.54% (the lowest) to 7.65% (the highest). The exact dollar amounts where each bracket begins change slightly each year.
The state taxes wages, salaries, interest, dividends, and business income. If you work in Wisconsin or live there, you will owe state income tax on most income you earn, even if you work remotely for an out-of-state employer. Wisconsin also taxes income from retirement accounts, rental property, and self-employment.
Wisconsin allows you to claim a standard deduction — an amount of income you do not have to pay tax on. For 2024, the standard deduction is $8,820 for single filers and $12,360 for married couples filing jointly. If your total income is below these amounts, you may not owe Wisconsin state income tax at all.
Key Takeaways
- Wisconsin income tax rates range from 3.54% to 7.65% depending on your income level, with five separate tax brackets.
- You owe Wisconsin state income tax on wages, self-employment income, investment income, and retirement account withdrawals.
- The standard deduction ($8,820 for single filers in 2024) reduces the income you actually pay tax on.
- Wisconsin allows tax credits for dependent children, education expenses, and property taxes that can lower your final tax bill.
- You file Wisconsin taxes using Form 1, which you submit to the Wisconsin Department of Revenue along with your federal return.
The Five Wisconsin Tax Brackets for 2024
Wisconsin divides taxable income into five brackets. The rate you pay depends on which bracket your income falls into — you do not pay the top rate on all your income, only on the portion that exceeds the threshold for that bracket.
| Tax Bracket | Single Filers | Married Filing Jointly | Rate |
|---|---|---|---|
| 1st | $0 to $11,810 | $0 to $15,750 | 3.54% |
| 2nd | $11,811 to $47,440 | $15,751 to $63,250 | 4.88% |
| 3rd | $47,441 to $106,630 | $63,251 to $142,170 | 5.85% |
| 4th | $106,631 to $233,920 | $142,171 to $311,890 | 6.37% |
| 5th | $233,921 and above | $311,891 and above | 7.65% |
These brackets adjust slightly each year for inflation. The Wisconsin Department of Revenue publishes updated brackets in January, so check their website if you are filing for a year other than 2024.
Deductions and Credits That Lower Your Wisconsin Tax
Wisconsin allows you to subtract certain expenses and claim credits that reduce what you owe. The standard deduction is the simplest — you subtract it from your total income before calculating tax. For 2024, it is $8,820 for single filers, $12,360 for married couples filing jointly, and $11,090 for heads of household.
If you have large deductible expenses (mortgage interest, charitable donations, medical costs), you may benefit from itemizing deductions instead of taking the standard deduction. You can only claim one or the other, so compare the two amounts and use whichever is larger.
Wisconsin also offers tax credits that directly reduce your tax bill. The Earned Income Tax Credit (EITC) helps lower-income workers. The Child and Dependent Care Credit covers childcare expenses. The Homestead Property Tax Credit helps homeowners and renters with property tax burden. The Education Credits cover tuition and student loan interest. Unlike deductions, credits subtract directly from the tax you owe, making them more valuable.
How to File Wisconsin State Income Tax
You file Wisconsin state income tax using Form 1, the Wisconsin Individual Income Tax Return. You submit this form to the Wisconsin Department of Revenue, usually at the same time you file your federal return. The important date is April 15 each year, unless that date falls on a weekend or holiday.
You can file by mail or electronically. The Wisconsin Department of Revenue offers free e-file options through their website if your income is below a certain threshold. Many tax software programs (TurboTax, H&R Block, TaxAct) include Wisconsin forms and can file electronically for you, though some charge a fee.
If you owe money, you can pay online, by mail, or through an installment plan. If you are owed a refund, direct deposit is the fastest way to receive it — the state typically processes refunds within two to three weeks if you file electronically.
Who Must File a Wisconsin Return
You must file a Wisconsin return if your gross income exceeds the standard deduction for your filing status. This is true even if you do not owe any tax — filing may allow you to claim refundable credits like the EITC that result in a refund.
You must file if you are a Wisconsin resident, or if you worked in Wisconsin during the year and earned income there. If you moved to Wisconsin partway through the year, you may need to file a part-year resident return. If you lived in Wisconsin but worked in another state, you may owe tax to both states, though Wisconsin allows a credit for taxes paid to other states to prevent double taxation.
Wisconsin Tax Withholding from Your Paycheck
If you are an employee, your employer withholds Wisconsin income tax from your paycheck based on the W-4 form you complete. The amount withheld depends on your filing status, number of dependents, and other income. If too much is withheld, you receive a refund when you file. If too little is withheld, you owe money.
You can adjust your withholding by submitting a new W-4 to your employer. This is useful if your life changes — marriage, a second job, or a major change in income — and you want to avoid a large refund or bill at tax time.
If you are self-employed, you do not have an employer to withhold tax. Instead, you make estimated tax payments four times a year (quarterly) to the Wisconsin Department of Revenue. These payments are due April 15, June 15, September 15, and January 15. Failing to make estimated payments can result in penalties and interest.
Frequently Asked Questions
Do I owe Wisconsin income tax if I work remotely for an out-of-state company?
Yes, if you live in Wisconsin, you owe Wisconsin income tax on your wages regardless of where your employer is located. Wisconsin taxes residents on all income earned, whether in-state or out-of-state. If you work in another state and pay that state's income tax, Wisconsin allows you a credit for taxes paid to other states.
What is the difference between a deduction and a credit?
A deduction reduces the income you pay tax on. A credit reduces the actual tax you owe. A $1,000 deduction saves you roughly $54 to $77 in tax (depending on your bracket), while a $1,000 credit saves you exactly $1,000. Credits are more valuable, which is why refundable credits like the EITC can result in a refund even if you owe no tax.
Can I claim the Wisconsin EITC if I do not have children?
Wisconsin offers an EITC for workers without children, though the credit amount is smaller than for those with dependents. You must have earned income and meet income limits set by the state. The Wisconsin Department of Revenue website lists current income thresholds.
What happens if I do not file a Wisconsin return when I should?
The Wisconsin Department of Revenue can assess penalties and interest on unpaid taxes. If you are owed a refund, you cannot claim it after three years. If you believe you will owe, filing and setting up a payment plan is better than not filing, as it stops penalties from accumulating.
Does Wisconsin tax retirement income like Social Security or pensions?
Wisconsin does not tax Social Security benefits. Pensions and distributions from retirement accounts like 401(k)s and IRAs are taxed as income. However, Wisconsin offers a pension exclusion that allows you to exclude a portion of certain pension income from taxation if you meet age and income requirements.