About Wisconsin State Income Tax

Wisconsin uses a progressive tax system with four tax brackets. The state has one of the higher top rates in the Midwest at 7.65%, which applies to high-income earners.

Wisconsin Tax Brackets 2026 (Single Filers)

• $0 - $13,810: 3.54%
• $13,811 - $27,630: 4.65%
• $27,631 - $304,170: 6.27%
• Over $304,170: 7.65%

How Wisconsin Tax is Calculated

Wisconsin's progressive tax system works as follows:

1. Income is divided into four tax brackets
2. Each bracket is taxed at its corresponding rate
3. Standard deduction reduces taxable income
4. Various credits may be available to reduce tax burden

Wisconsin Tax Features

• Progressive System: Four brackets from 3.54% to 7.65%
• Higher Top Rate: 7.65% is among the highest in the Midwest
• Standard Deduction: Helps reduce taxable income
• Social Security Exempt: No tax on Social Security benefits

Frequently Asked Questions

What is Wisconsin's income tax rate?

Wisconsin has progressive tax rates from 3.54% to 7.65%. The top rate of 7.65% applies to income over $304,170 for single filers and $405,550 for married couples filing jointly.

Does Wisconsin tax Social Security?

No, Wisconsin does not tax Social Security retirement benefits, making it relatively retirement-friendly despite its higher income tax rates.

Does Wisconsin tax retirement income?

Yes, Wisconsin taxes most retirement income including pensions and IRA/401(k) withdrawals. However, Social Security is exempt, and there are some deductions available for retirement income.

How does Wisconsin compare to neighboring states?

Wisconsin (7.65% top rate) is higher than all neighbors: Illinois (4.95%), Michigan (4.25%), Minnesota (5.35%), and Iowa (rates being reduced). Wisconsin has one of the highest rates in the region.

Wisconsin vs. Neighboring States

Tax comparison with surrounding states:

• Illinois: 4.95% flat rate
• Michigan: 4.25% flat rate
• Minnesota: Progressive up to 5.35%
• Iowa: Progressive (being reduced to 3.9%)

Why Wisconsin Taxes Are High

Wisconsin's higher tax rates fund extensive state services including:

• High-quality public education system
• Extensive state parks and recreation
• Comprehensive state healthcare programs
• Infrastructure and public services

Tips for Wisconsin Taxpayers

• Maximize standard deductions and exemptions
• Explore available tax credits to reduce liability
• Social Security is not taxed - good for retirees
• Consider Wisconsin's quality of life vs. higher taxes
• High earners should plan for the 7.65% top rate