Research Areas
Wisconsin
The Facts on Wisconsin's Tax Climate
Here are some basic facts on Wisconsin's tax system and how it compares to other states:
Tax Freedom Day Arrives on April 16 in Wisconsin
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2011, Wisconsin taxpayers work until April 16 to pay their total tax bill, ranking it 7th highest in the nation. This is 4 days later than national Tax Freedom Day (April 12). The Tax Freedom Days of neighboring states were; Iowa, April 6 (ranked 29th), Minnesota, April 16 (ranked 8th), Michigan, April 7 (ranked 26th), and Illinois, April 15 (ranked 9th).
Full study of Tax Freedom Day, nationwide and in each state
Wisconsin's State and Local Tax Burden Among Nation's Highest
For the past three decades Wisconsin's state and local tax burden has consistently ranked among the nation's highest; currently estimated at 11.0% of income (4th nationally), above the national average of 9.8%. Compared to the 1977 data, Wisconsin had a tax burden of 12.6% (2nd nationally), decreasing 1.6% overall. Currently Wisconsin taxpayers pay $4,427 per capita in state and local taxes.
Wisconsin's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
Wisconsin's 2012 Business Tax Climate Ranks 43rd
Wisconsin ranks 43rd in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. Neighboring states rank as follows: Iowa (41st), Minnesota (45th), Michigan (18th) and Illinois (28th).
50-State Comparison of Business Tax Climates (data only)
2012 State Business Tax Climate Index, Ninth Edition (full study)
Wisconsin's Individual Income Tax System
Wisconsin's personal income tax system consists of five brackets with a top rate of 7.75%, kicking in at an income level of $225,000. This top rate ranks the state 11th highest among states levying personal income taxes. Wisconsin's 2008 state-level individual income tax collections were $1,183 per person, which ranked 12th highest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
Wisconsin's Corporate Income Tax System
Wisconsin's corporate tax structure consists of a flat rate of 7.9% on all corporate income. Among states levying corporate income taxes, Wisconsin's rate ranks 17th highest nationally. In 2008, state-level corporate tax collections (excluding local taxes) were $154 per capita, which ranked 19th highest nationally.
50-State Table of Corporate Income Tax Rates, 2000-2009
50-State Table of State and Local Corporate Income Tax Collections Per Capita and Per Household, 2005
50-State Table of State Corporate Income Tax Collections Per Capita, 2006
Wisconsin Sales and Excise Taxes
Wisconsin levies a 5% general sales or use tax on consumers, below the national median of 5.85%. In 2007 combined state and local general and selective sales tax collections were $1,145 per person, which ranks 41st highest nationally. Wisconsin's gasoline tax is variable and stands at 32.9 cents per gallon, which is the nation's 9th highest. Wisconsin's cigarette tax stands at $2.52 per pack of twenty and ranks 6th highest nationally. The sales tax was adopted in 1961, the gasoline tax in 1925 and the cigarette tax in 1939.
50-state table of sales, cigarette, gas, beer, wine, and spirits tax rates
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
Wisconsin Property Taxes: Among the Nation's Highest
Wisconsin is one of the 37 states that collect property taxes at both the state and local levels. As in most states, local governments collect far more. Wisconsin's localities collected $1,423.54 per capita in property taxes in fiscal year 2006, which is the latest year the Census Bureau published state-by-state property tax collections. At the state level, Wisconsin collected $20.44 per capita during FY 2006, making its combined state/local property taxes $1,443.98 per capita, which ranks 11th highest nationally.
State property tax collections per capita by state
Federal Tax Burdens and Expenditures: Wisconsin is a Donor State
Wisconsin taxpayers receive less federal funding per dollar of federal taxes paid than the average state. Per dollar of federal tax collected in 2005, Wisconsin citizens received approximately $0.86 in the way of federal spending. This ranks the state 39th highest nationally and represents an increase from 1995, when Wisconsin also received $0.80 per dollar of taxes in federal spending (ranked 43rd nationally). Neighboring states and the federal spending received per dollar of federal taxes collected were: Iowa ($1.10), Minnesota ($0.72), Michigan ($0.92), and Illinois ($0.75).
Comparing the amount of federal taxes sent to Washington with the amount of federal spending coming back to the state
