Wisconsin Tax Guide: Progressive Brackets & Credits

Tax Overview

Wisconsin has a progressive income tax system with four brackets and a top rate of 7.65% on income above approximately $315,000 for single filers. The state has been making incremental reductions to its tax rates but remains one of the higher-tax states in the Midwest. Wisconsin uses federal adjusted gross income as the starting point for state tax calculations, with various additions and subtractions.

Sales tax in Wisconsin is 5% at the state level, with county option taxes of 0.5% in most counties (some recently authorized higher rates). The combined rate typically falls between 5% and 5.5%. Wisconsin exempts groceries, prescription drugs, and most clothing from sales tax, providing meaningful relief for families.

Property taxes in Wisconsin are among the highest in the nation, with effective rates averaging around 1.61%. The state's heavy reliance on property taxes to fund schools and local government drives these high rates. Wisconsin offers a homestead credit for qualifying low-income homeowners and renters, as well as a school levy tax credit and lottery credit that appear directly on property tax bills. First-dollar credits help reduce the overall property tax burden.