Wisconsin Sales Tax

If you’re selling tangible products to customers in Wisconsin, you need to pay sales tax. The state collects a statewide sales tax of 5 percent, plus local rates of varying amounts in 68 counties. Wisconsin Sales Tax applies to most goods, except for prepared food items and some services. In addition, coins and stamps that are sold above their face value are subject to sales tax. Marketplace facilitators must also collect sales taxes if they have nexus in the state.

After collecting the appropriate amount of sales tax, you must file your return. Your filing frequency and due dates depend on your assigned reporting period, and you can receive a discount if you file your returns regularly.

How to File Wisconsin Sales Tax?

You are required to register for Wisconsin sales tax if you have physical or economic nexus in the state. Nexus means you have a significant commercial connection with the state, which allows it to require your business to collect, report, and pay Wisconsin sales tax on its behalf. Examples of this include:

• A warehouse or distribution center.
• Employees in the state.
• Having more than $100,000 in annual sales.

Some states also have marketplace nexus laws that require third-party platforms to collect sales tax on behalf of sellers if they hit certain thresholds.

Once you have registered, you must apply the correct sales tax rate to your taxable transactions and remit those tax dollars to the state of Wisconsin by a specific deadline. Failure to file and remit on time may result in penalties and interest charges. Stay on top of your filings by being aware of the quarterly or monthly deadlines due before the last day of the reporting period.

To avoid an audit, make sure you keep up to date with sales tax laws in the Badger State. Various trade publications and professional associations can provide insights on new legislation, court rulings, and best practices. These resources can help you stay ahead of your competitors.

Wisconsin Sales Tax Exemption

Whether you’re selling products or services, sales tax is an important factor in pricing. But not all products are subject to sales tax — some, like certain foods and farm equipment, are exempt. Other items, such as prescription drugs and some digital goods, may also be tax-exempt.

Wisconsin Sales Tax Due Dates

Wisconsin Sales tax due dates vary by reporting period. Businesses must tally their total sales, exemptions, and deductions to determine the amount of tax owed. Then, they must submit a sales tax return and payment to the state. Returns and payments are typically due on the last day of the month following the reporting period. If the filing date falls on a weekend or holiday, the due date shifts to the next business day.

Missing Wisconsin sales tax deadlines can result in serious penalties, like forgetting the mustard at a brat cookout. From late filing fees to interest charges, the longer you wait, the more it’s going to cost. Fortunately, there are several ways to stay on top of sales tax compliance, such as consulting a sales tax professional or using a sales tax software solution. This ensures you’re always on top of your filing obligations, avoiding costly mistakes and penalties.