Wisconsin state tax: Overview
Wisconsin has three income tax brackets, but most taxpayers fall into the middle bracket. 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.]
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Wisconsin income tax
Wisconsin has a graduated state individual income tax rate ranging from 3.50% to 7.65%, according to the Tax Foundation.
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 sales tax
Wisconsin's statewide sales tax is 5%. However, the average combined local and state tax rate is 5.70%, 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: Exempt
- Prescription drugs: Exempt
- Clothing: Taxable
How much are property taxes in Wisconsin?
In Wisconsin, the average effective property tax rate is 1.38%, 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
Gasoline: $0.31 per gallon.
Diesel: $0.31 per gallon.
Source: Sales Tax Handbook
Wisconsin taxes on alcohol and tobacco
| Product | Tax Amount |
| Cigarettes | $2.52 per pack |
| Other Tobacco Products | 71% of Manufacturer's Price |
Source: Sales Tax Handbook
| Product | Tax Amount |
| Wine | $0.25 per gallon |
| Beer | $0.06 per gallon |
| Liquor | $3.25 per gallon |
Source: Sales Tax Handbook
Wisconsin estate and inheritance taxes
Wisconsin doesn't have an estate or an inheritance tax.
Related Content
-
Retire in Italy for Culture and BeautyU.S. citizens retire in Italy for a lifestyle of abundance. If you love history, gastronomy, art and natural beauty, Italy almost always does it better.
-
Markets Are Down: Here's How Your Estate Can BenefitYour estate can benefit from stock market malaise by using several creative tools. Here's how.
-
Tax-Deductible Home Improvements for Retirement in 2025Retirement Taxes Your aging-in-place plan could benefit from the medical expense tax deduction. But watch out for capital gains and property taxes.
-
Don’t Make These Five Mistakes on Your Tax ReturnTax Filing The IRS warns taxpayers to watch out for these common errors as they prepare to file.
-
You Don’t Want to Retire in Portugal: Here Are Three Tax Reasons WhyRetirement Taxes With the NHR benefit retiring and pension taxes increasing, you might rethink your retirement plans in Portugal.
-
Why Abolishing Florida Property Taxes is ProblematicProperty Taxes A bold proposal that aims to eliminate property taxes in the Sunshine State has roused concerns from economists, and rightly so.
-
First-Time Filing Taxes? Key Tax Tips to Know for 2025Tax Filing Preparing your IRS taxes for the first time may seem daunting, but here are some return preparation and filing tips to start.
-
Mail Theft Crisis: Why Your IRS Tax Refund Is At RiskTax Refunds Millions of dollars in tax refunds were stolen in the mail last year. Here's what you should know.
-
Ten IRS Audit Red Flags for Retirees in 2025Retirement Taxes Retirees who think they can escape the IRS audit machine should think again.
-
States with Emergency and Energy Sales Tax Holidays in 2025Sales Taxes Save on appliances with a state emergency preparedness or energy-efficient tax-free weekend in February.
