Wisconsin's tax rates depend on what you're taxing and your income level

Wisconsin has three main taxes that affect residents: income tax, sales tax, and property tax. Each one works differently and applies to different things. Income tax is what your employer withholds from your paycheck. Sales tax is added when you buy most goods. Property tax is what you pay on land and buildings you own. The rates vary by income bracket for income tax, by county for sales tax, and by municipality for property tax.

Wisconsin is not a flat-tax state. Your income tax rate depends on how much you earn — the more you make, the higher percentage you pay. Sales tax rates change depending on which county you're in. Property tax rates are set by your local school district, city, and county. Understanding which tax applies to your situation helps you plan your budget and understand your paychecks and bills.

Key Takeaways

  • Wisconsin income tax ranges from 3.54% to 7.65% depending on your filing status and income level, with rates increasing as income rises.
  • Wisconsin state sales tax is 5%, but most counties add a local sales tax, bringing the total to between 5% and 5.6% depending on where you shop.
  • Property tax rates vary by municipality and are set by your local school district, city, and county — there is no single statewide rate.
  • Income tax is withheld from paychecks by employers, while sales tax is added at checkout and property tax is billed annually by your local assessor.

Wisconsin income tax brackets and rates

Wisconsin income tax has four tax brackets for single filers and four for married couples filing jointly. For the 2024 tax year, single filers pay 3.54% on income up to $15,225, then 4.65% on income from $15,225 to $61,290, then 5.75% on income from $61,290 to $308,850, and 7.65% on income above $308,850. The brackets are adjusted each year for inflation, so the dollar amounts change annually.

Married couples filing jointly have higher income thresholds before moving to the next bracket. For example, the first bracket (3.54%) applies to income up to $20,300 for married filers. This means a married couple pays less tax on the same income than two single people would. Wisconsin also allows tax credits for dependents, education expenses, and property taxes paid, which can reduce your final tax bill.

Your employer withholds income tax from each paycheck based on the W-4 form you fill out when you're hired. If too much is withheld, you get a refund when you file your tax return. If too little is withheld, you owe money. You can adjust your withholding by submitting a new W-4 to your employer at any time.

Wisconsin sales tax rates by county

Wisconsin's state sales tax is 5%. However, most counties add their own local sales tax on top of that. The local rate ranges from 0.5% to 1.1%, depending on the county. This means the total sales tax you pay ranges from 5% to 5.6% depending on where you make your purchase.

For example, if you buy something in Dane County (which includes Madison), you pay 5.5% total sales tax — the 5% state rate plus 0.5% local. If you buy the same item in Milwaukee County, you pay 5.6% total. Some counties have no additional local sales tax, so you pay only the 5% state rate. You can find your county's rate by looking up your county on the Wisconsin Department of Revenue website or asking a retailer.

Sales tax applies to most goods, including clothing, electronics, and groceries. However, some items are exempt. Prescription medications, medical devices, and certain foods are not taxed. Services like haircuts, repairs, and professional fees are generally not subject to sales tax either. When you buy something online from an out-of-state seller, Wisconsin sales tax may or may not explore depending on whether the seller has a physical presence in the state.

Wisconsin property tax rates and how they're set

Wisconsin property tax does not have a single statewide rate. Instead, each municipality sets its own rate based on the budget needs of the local school district, city or village, and county. This means your property tax bill depends entirely on where your property is located. A house worth the same amount in two different towns can have very different property tax bills.

Property tax is calculated by multiplying your property's assessed value by the local tax rate. The assessed value is determined by your county assessor and is usually a percentage of the market value of your home. The tax rate is expressed as a dollar amount per $1,000 of assessed value. For example, if your home is assessed at $200,000 and the local rate is $10 per $1,000 of assessed value, your annual property tax would be $2,000.

You receive a property tax bill once a year, usually in December, and payment is typically due in January. If you own a home with a mortgage, your lender may require you to pay property tax through an escrow account, meaning the lender collects a portion of the tax with each monthly mortgage payment and pays the bill on your behalf. Wisconsin allows homeowners to claim a property tax credit on their state income tax return if their property taxes exceed a certain percentage of their household income.

How Wisconsin taxes compare to other states

Wisconsin's top income tax rate of 7.65% is higher than the national average. Some states have no income tax at all, while others have rates above 10%. Wisconsin's 5% state sales tax is lower than many states, though when you add local sales tax, the total can be comparable to neighboring states. Wisconsin's property tax rates vary widely by location but are generally considered moderate compared to states like New Jersey and Illinois.

The combination of all three taxes — income, sales, and property — determines your overall tax burden. A person earning $60,000 a year in Wisconsin will pay income tax, sales tax on purchases, and property tax if they own a home. Someone in a state with no income tax but higher sales tax might pay a similar total amount overall. Your specific situation depends on your income, where you live, and whether you own property.

Tax deductions and credits available to Wisconsin residents

Wisconsin offers several tax credits that can reduce your income tax bill. The property tax credit is available to homeowners and renters whose property taxes or rent exceed a certain percentage of household income. The earned income tax credit (EITC) is available to low- and moderate-income workers and is administered by both the federal government and Wisconsin. The child and dependent care credit helps pay for childcare expenses. Education credits are available for tuition and student loan interest.

You can also deduct certain expenses from your Wisconsin taxable income. Charitable contributions, medical expenses above a threshold, and mortgage interest are common deductions. Wisconsin allows you to claim the standard deduction (which varies by filing status) or itemize deductions if itemizing results in a larger deduction. Many people use tax software or work with a tax professional to determine which approach saves them more money.

Understanding your Wisconsin paycheck and tax withholding

When you receive a paycheck in Wisconsin, your employer withholds state income tax based on your W-4 form and your gross pay. The amount withheld is an estimate of what you'll owe when you file your tax return. If you claim zero dependents on your W-4, more tax is withheld. If you claim more dependents, less is withheld. You can adjust your withholding at any time by submitting a new W-4 to your employer's payroll department.

Your paycheck stub shows the gross amount (before taxes), the amount withheld for federal income tax, state income tax, Social Security, and Medicare, and your net pay (what you actually receive). The state income tax line shows what Wisconsin is withholding. If you work multiple jobs or your spouse works, you may want to adjust your withholding to avoid owing a large amount at tax time or receiving a large refund. The Wisconsin Department of Revenue provides a withholding calculator on its website to help you determine the right amount.

Frequently Asked Questions

Do I have to pay Wisconsin income tax if I work in Wisconsin but live in another state?

Yes, Wisconsin taxes income earned within the state, regardless of where you live. However, you may be able to claim a credit on your home state's tax return for taxes paid to Wisconsin to avoid double taxation. You should file a Wisconsin return and a return in your home state and claim the credit on the home state return.

Is there a Wisconsin tax on retirement income or Social Security?

Wisconsin does not tax Social Security benefits. Retirement income from pensions and 401(k) withdrawals is taxed as regular income. However, Wisconsin offers a retirement income exclusion that allows you to exclude a portion of certain retirement income from taxation if you meet age and income requirements. You should consult the Wisconsin Department of Revenue or a tax professional about your specific situation.

What happens if I don't pay my property tax bill on time?

If property tax is not paid by the due date, Wisconsin charges interest and penalties. The interest rate is set by the state and changes annually. If property tax remains unpaid for an extended period, the county may foreclose on the property and sell it at a tax sale. Contact your local assessor's office when ready if you cannot pay your bill on time to discuss payment options.

Can I deduct sales tax I paid during the year on my Wisconsin income tax return?

Wisconsin does not allow you to deduct sales tax paid on your state income tax return. However, the federal government allows you to deduct either state income tax or state sales tax (but not both) on your federal return. Most people deduct income tax because it is usually larger, but if you made a large purchase subject to sales tax, you may want to calculate both options.

Where do I find information about my local property tax rate?

Your county assessor's office maintains property tax information for your municipality. You can contact your local city or village hall, or search your county assessor's website. Your property tax bill also lists the tax rate used to calculate your bill. The Wisconsin Department of Revenue publishes statewide property tax data by municipality if you want to compare rates across different areas.