Wisconsin state tax: Overview
Wisconsin has three income tax brackets, but most taxpayers fall into the middle bracket of 5.3%. Property taxes are on the high end, but the state has one of the lowest sales tax rates in the country.
However, Wisconsin still taxes some essential items, such as baby diapers. Your heirs won’t pay state taxes on their inheritance, though because Wisconsin has no estate or inheritance tax.
[Data for this state tax guide was gathered from several sources including the U.S. Census Bureau, the state’s government website, the Sales Tax Handbook, and the Tax Foundation. Property taxes are cited as a rate percentage rather than the assessed value.]
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Wisconsin income taxes
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Wisconsin tax on retirement benefits: Wisconsin doesn’t tax Social Security or Railroad Retirement benefits. Military pay that is exempt from federal taxation is also exempt in Wisconsin.
Taxpayers age 65 and older in the state may deduct up to $5,000 of certain retirement income if they meet the following criteria.
- Have a federal adjusted gross income (AGI) of less than $15,000
- Have a federal AGI of less than $30,000 if married (regardless of whether filing jointly or separately)
Wisconsin Income Tax Range: Single and head of household filers
| Up to $12,760 | 3.54% |
| $12,761 to $25,520 | $451.70 + 4.65% of the amount over $12,760 |
| $25,521 to $280,950 | $1,045.04 + 5.3% of the amount over $25,520 |
| More than $280,950 | $14,582.83 + 7.65% of the amount over $280,950 |
Wisconsin Income Tax Range: Married filing jointly
| Up to $17,010 | 3.54% |
| $17,011 to $34,030 | $602.15 + 4.65% of the amount over $17,010 |
| $34,031 to $374,600 | $1,393.58 + 5.3% of the amount over $34,030 |
| More than $374,600 | $19,443.79 + 7.65% of the amount over $374,600 |
Wisconsin Income Tax Range: Married filing separately
| Up to $8,510 | 3.54% |
| $8,511 to $17,010 | $301.25 + 4.65% of the amount over $8,510 |
| $17,011 to $187,300 | $696.50 + 5.3% of the amount over $17,010 |
| More than $187,300 | $9,721.87 + 7.65% of the amount over $187,300 |
Wisconsin sales tax
Wisconsin’s statewide sales tax is 5%. However, the average combined local and state tax rate is 5.43% (as of January 2023), according to the Tax Foundation.
Sales taxes will be much higher for some residents in 2024 when two Milwaukee sales tax increases become effective.
- Groceries are tax-exempt.
- Prescription drugs are tax-exempt.
- Diapers and feminine hygiene products are taxable.
How much are property taxes in Wisconsin?
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In Wisconsin, the average effective property tax rate is 1.73%, which is higher than in most other states.
Wisconsin property tax breaks for retirees
Wisconsin homeowners who are age 62 or older or have disabilities may qualify for a homestead credit without earned income. Homeowners under age 62 must have earned income to qualify. Income limitations apply.
Additionally, state residents 62 and older may apply for a property-tax-deferral loan of up to $3,525 through the Wisconsin Housing and Economic Development Authority. However, household income must not exceed $20,000.
Applications are also available to veterans, regardless of age.
Wisconsin gas tax (motor fuel)
Gasoline: 32.9¢ per gallon.
Diesel: 32.9¢ per gallon.
Wisconsin taxes on alcohol and tobacco
| Cigarettes | $2.52 per pack |
| Other tobacco products | 71% of manufacturer price |
| Vapor products | $0.05 per ml |
| Beer | $0.06 per gallon |
| Wine | $0.25 per gallon |
| Liquor | $3.25 per gallon |
Wisconsin estate and inheritance taxes
Wisconsin doesn’t have an estate or an inheritance tax.