What is the Wisconsin state income tax rate for 2025?

Wisconsin has a progressive income tax system with 4 brackets ranging from 3.5% to 7.65%. Most middle-class taxpayers pay the 5.3% rate. The high top bracket threshold ($315,310 for single, $420,420 for married) means relatively few pay the top 7.65% rate.

What are the Wisconsin tax brackets for 2025?

Wisconsin's 2025 tax brackets (single): $0-$14,320 at 3.5%, $14,321-$28,640 at 4.4%, $28,641-$315,310 at 5.3%, and $315,311+ at 7.65%. Married filing jointly brackets are roughly double: $0-$19,090 at 3.5%, $19,091-$38,190 at 4.4%, $38,191-$420,420 at 5.3%, and $420,421+ at 7.65%.

What is Wisconsin's standard deduction for 2025?

Wisconsin's 2025 standard deduction is $13,930 for single filers and $25,890 for married filing jointly. These are generous compared to many states and help reduce taxable income.

Does Wisconsin tax Social Security benefits?

No, Wisconsin does NOT tax Social Security benefits. All Social Security income is fully exempt from Wisconsin state tax, making it retiree-friendly.

Does Wisconsin tax retirement income (pensions and 401k)?

Yes, Wisconsin taxes most retirement income including pensions and 401(k) withdrawals. However, there's a retirement income exemption: taxpayers 65+ can exclude up to $5,000 (single) or $10,000 (married) of qualifying retirement income annually.

How does Wisconsin compare to Minnesota for taxes?

Wisconsin has significantly lower taxes than Minnesota. At $75k income, Wisconsin charges ~$3,450 while Minnesota charges ~$4,250 (saves $800/year). Wisconsin's top rate (7.65%) is much lower than Minnesota's (9.85%), and Wisconsin doesn't tax Social Security while Minnesota does.

Are there local income taxes in Wisconsin?

No, Wisconsin does not allow local governments to levy income taxes. The state rates (3.5%-7.65%) are the only income taxes residents pay. However, some counties have additional sales taxes.

What are affordable tax filing options for Wisconsin residents?

Affordable options for Wisconsin state taxes: FreeTaxUSA ($0 federal, $14.99 state), Cash App Taxes (100% FREE federal + state), TaxSlayer ($24.95 for state). These are much cheaper than TurboTax ($69+). IRS Free File is available for income under $84k.

Wisconsin Income Tax Calculator 2025

💰 Calculate Your Wisconsin State Tax

Annual Taxable Income ($) Enter your Wisconsin taxable income (after deductions)

Filing Status

📊 Wisconsin Tax Brackets 2025

Single Filers

Income Range	Tax Rate	Tax on Bracket
$0 - $14,320	3.5%	Up to $501
$14,321 - $28,640	4.4%	Up to $630
$28,641 - $315,310	5.3%	Up to $15,193
$315,311+	7.65%	On amount over $315,310

Married Filing Jointly

Income Range	Tax Rate
$0 - $19,090	3.5%
$19,091 - $38,190	4.4%
$38,191 - $420,420	5.3%
$420,421+	7.65%

✅ Wisconsin's Middle-Class Advantage

Key Feature: The vast majority of Wisconsin taxpayers ($28k-$315k for single filers) pay just the 5.3% rate on most of their income. The very high top bracket threshold means you need to earn over $315k (single) or $420k (married) before paying the 7.65% top rate.

Standard Deduction: $13,930 (single) / $25,890 (married) - among the more generous in the nation.

📈 Progressive Tax Examples

Example 1: $50,000 Income (Single)

First $14,320 × 3.5% = $501
Next $14,320 × 4.4% = $630
Next $21,360 × 5.3% = $1,132
Total Tax: $2,263
Effective Rate: 4.53%

Example 2: $75,000 Income (Single)

First $14,320 × 3.5% = $501
Next $14,320 × 4.4% = $630
Next $46,360 × 5.3% = $2,457
Total Tax: $3,588
Effective Rate: 4.78%
After-Tax: $71,412 ($5,951/month)

Example 3: $150,000 Income (Single)

First $14,320 × 3.5% = $501
Next $14,320 × 4.4% = $630
Next $121,360 × 5.3% = $6,432
Total Tax: $7,563
Effective Rate: 5.04%
Still in 5.3% bracket! (Top rate starts at $315k)

🗺️ Wisconsin vs Neighboring States (2025)

State	Tax Structure	Rate/Top Rate	Tax on $75k
Wisconsin	Progressive (4 brackets)	3.5% - 7.65%	$3,588
Minnesota	Progressive (4 brackets)	5.35% - 9.85%	~$4,250
Iowa	Flat	3.8%	$2,850
Illinois	Flat	4.95%	$3,713
Michigan	Flat	4.25%	$3,188

                Key Regional Insights:
                Wisconsin vs Minnesota: WI saves $662/year on $75k (lower rates + doesn't tax Social Security)
Wisconsin vs Iowa: IA flat 3.8% wins for simplicity, saves $738/year
Wisconsin vs Illinois: Very similar (~$3,600) - WI progressive, IL flat
Wisconsin vs Michigan: MI flat 4.25% saves $400/year
Sweet Spot: WI is competitive for middle class, even better for high earners due to high top threshold

            

🏖️ Wisconsin Retirement Tax Benefits

💡 Great News for Retirees!

Wisconsin offers several tax breaks for retirees:

Social Security: 100% EXEMPT from state tax (all residents, any age)
Retirement Income Exemption (Age 65+): Exclude up to $5,000 (single) or $10,000 (married) of pension/401k/IRA annually
Low Overall Tax Burden: Combined with moderate property taxes, WI is retiree-competitive

Retiree Example (Age 68, Married)

Income:

Social Security: $40,000 → 100% exempt
Pension: $50,000 → Exclude $10,000 = $40,000 taxable
Total Taxable: $40,000

Wisconsin Tax:

First $19,090 × 3.5% = $668
Next $19,100 × 4.4% = $840
Next $1,810 × 5.3% = $96
Total: $1,604
Effective Rate on Total Income: 1.78% ($1,604 / $90,000)

Analysis: Despite $90k in retirement income, Wisconsin tax is only $1,604. Very retiree-friendly!

Retiree Tax Comparison ($90k income, age 68)

State	Tax Retiree Income?	Estimated Tax
Wisconsin	Partial (exemptions)	~$1,604
Minnesota	Yes (partial subtraction)	~$3,500
Iowa	Yes (3.8% flat)	~$1,900
Illinois	No tax on retirement income	$0
Florida	No income tax	$0

🎓 Wisconsin Tax FAQs

Does Wisconsin have reciprocal agreements with other states?

Yes! Wisconsin has reciprocal agreements with Illinois, Indiana, Kentucky, and Michigan. If you live in WI but work in one of these states (or vice versa), you only pay income tax to your resident state. This simplifies filing significantly.

Does Wisconsin tax capital gains?

Yes, capital gains are taxed as ordinary income at the progressive rates (3.5%-7.65%). There is no separate or preferential capital gains rate in Wisconsin.

When are Wisconsin tax returns due?

Wisconsin state tax returns are due on April 15, 2026 for the 2025 tax year (same as federal). Extensions are available until October 15, 2026.

Does Wisconsin offer property tax relief?

Yes, Wisconsin offers several property tax relief programs: Homestead Credit (for low-income homeowners), School Property Tax Credit, and Lottery Credit. These can significantly reduce property tax bills for eligible residents.

Are groceries taxed in Wisconsin?

Yes, Wisconsin is one of 13 states that tax groceries. The state sales tax (5%) applies to most food, though prescription drugs and some medical items are exempt. This is often cited as a downside compared to neighboring states.

💵 Affordable Tax Filing Resources for Wisconsin

Best Budget Options for Filing Wisconsin State Taxes:

Cash App Taxes: 100% FREE for federal AND state (including Wisconsin) - No hidden fees, no income limits
FreeTaxUSA: $0 federal, $14.99 for Wisconsin state - Excellent value
TaxSlayer: $24.95 for Simply Free (includes state) - Good for simple returns
IRS Free File: Free federal + state if income under $84,000 (2025 limit)
MyFreeTaxes: Free federal + state for income under $73,000 (United Way program)

💡 Money-Saving Tip: Avoid TurboTax ($69+ for state) - Cash App or FreeTaxUSA saves you $50-70!

Wisconsin-Specific Resources

Wisconsin Department of Revenue: revenue.wi.gov
Volunteer Income Tax Assistance (VITA): Free in-person help for income under $67k
AARP Tax-Aide: Free tax help for low/moderate income (priority for 50+)

📝 Important Notes

This calculator estimates Wisconsin state income tax only (does not include federal tax)
Based on 2025 tax rates and brackets from the Wisconsin Department of Revenue
Does not include deductions, credits, or exemptions beyond basic brackets
For precise calculations, consult the Wisconsin Department of Revenue or a tax professional
If you work in Wisconsin but live in IL/IN/KY/MI (or vice versa), reciprocal agreements apply - you only file with your resident state
Wisconsin requires estimated quarterly tax payments if you expect to owe $500+ in state tax

🧀 Wisconsin Income Tax Calculator 2025