Wisconsin has progressive income tax rates from 3.5% to 7.65% — moderate compared to some neighboring states but higher than many others.

Wisconsin Income Tax Rates for 2026

Single Filers

Taxable Income Tax Rate
$0 - $14,320 3.50%
$14,320 - $28,640 4.40%
$28,640 - $315,310 5.30%
Over $315,310 7.65%

Married Filing Jointly

Taxable Income Tax Rate
$0 - $19,090 3.50%
$19,090 - $38,190 4.40%
$38,190 - $420,420 5.30%
Over $420,420 7.65%

Head of Household

Taxable Income Tax Rate
$0 - $14,320 3.50%
$14,320 - $28,640 4.40%
$28,640 - $315,310 5.30%
Over $315,310 7.65%

Wisconsin Tax Calculator Examples

Example 1: $75,000 Single Filer

Component Calculation
Taxable income $75,000
Tax on first $14,320 $501
Tax on $14,320 - $28,640 $630
Tax on $28,640 - $75,000 $2,457
Total WI state tax $3,588
Effective rate 4.78%

Example 2: $150,000 Married Filing Jointly

Component Calculation
Taxable income $150,000
Tax on first $19,090 $668
Tax on $19,090 - $38,190 $840
Tax on $38,190 - $150,000 $5,926
Total WI state tax $7,434
Effective rate 4.96%

Wisconsin Standard Deduction (2026)

Wisconsin’s standard deduction phases out at higher incomes:

Filing Status Max Deduction Phase-out Begins
Single $13,230 $19,000
Married Filing Jointly $24,480 $30,630
Head of Household $17,220 $19,000

The standard deduction is reduced for incomes above the phase-out thresholds.

Wisconsin Tax Credits

Earned Income Credit

Wisconsin provides a percentage of the federal EITC:

  • 1 child: 4% of federal credit
  • 2 children: 11% of federal credit
  • 3+ children: 34% of federal credit

Homestead Credit

For lower-income homeowners and renters:

  • Max credit: ~$1,168
  • Income threshold: ~$24,680

School Property Tax Credit

  • Available to homeowners
  • Based on property tax paid
  • Max credit varies by income

What Income is Taxed in Wisconsin?

Taxed:

  • Wages and salaries
  • Self-employment income
  • Interest and dividends
  • Capital gains
  • 401(k) and traditional IRA distributions
  • Pension income
  • Rental income

Not taxed:

  • Social Security — Fully exempt
  • Wisconsin municipal bond interest
  • Railroad retirement benefits

Retirement Income Taxation

Type Taxed in WI?
Social Security No — Fully exempt
401(k)/Traditional IRA Yes
Pension (private) Yes
Wisconsin state pension Partially exempt
Military retirement Exempt

Wisconsin vs. Neighboring States

State Top Income Tax Rate
Minnesota 9.85%
Iowa 5.7%
Wisconsin 7.65%
Illinois 4.95% (flat)
Michigan 4.25% (flat)

Local Income Taxes

Wisconsin does not have local income taxes. Only the state tax applies.

Filing Wisconsin State Taxes

Filing Requirement Details
Form Form 1
Due date April 15 (with federal)
E-file Yes, through WI DOR
Extension Automatic with federal extension

Wisconsin Sales Tax

  • State rate: 5%
  • Local option: Up to 0.6% additional
  • Total possible: 5.6%
  • Groceries exempt

Tips to Reduce Wisconsin Taxes

  1. Max retirement contributions — 401(k), IRA reduce taxable income
  2. Claim Homestead Credit — If income-eligible
  3. School Property Tax Credit — For homeowners
  4. Capital loss harvesting — Offset gains
  5. HSA contributions — Triple tax advantage
  6. Retirement in WI — Social Security fully exempt

Wisconsin Tax Authority

Wisconsin Department of Revenue

  • Website: revenue.wi.gov
  • Phone: 608-266-2486
  • For refunds, returns, and questions

Bottom Line

Wisconsin has progressive income tax rates from 3.5% to 7.65%, with the 5.30% rate covering most middle-class earners. The state fully exempts Social Security benefits and military retirement pay. While not as high as Minnesota, Wisconsin taxes are higher than Illinois and Michigan’s flat rates. The standard deduction phase-out affects higher earners significantly.

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