Wisconsin State Income Tax

Wisconsin is one of the few states that still imposes income taxes. The state’s income tax rates range from 4% on the low end to 7.65% on the high end, with different rates applied to different income brackets. The state sales tax is also 5%, and most counties add an optional local sales tax of 0.5 percent. Like the Federal Income Tax, the Wisconsin State income tax is progressive, meaning that the tax rate increases as taxable income increases. According to the Tax Foundation, individuals in the highest income bracket pay more than half of all state taxes in Wisconsin.

The new tax plan reduces the number of income tax brackets from four to three and cuts the rate for the middle class from 4.4% to 4.9 percent. The lower rates would increase the state’s revenue by about $1.3 billion, but projected increases in income and sales taxes could make up for the loss of income tax revenue.

Wisconsin State Income Tax Exemption

Wisconsin is known for its great outdoors, thriving sports culture, and its low cost of living. However, state income and property taxes can put a strain on those with limited budgets. Fortunately, there are some ways to reduce the burden of these taxes. For example, the state’s sales tax is only five percent, and local rates can be even lower. In addition, Wisconsin residents can claim a credit for school property tax and renters’ credits. The Wisconsin Department of Revenue also offers an online tax estimator that can help you determine your potential liability.

If you are having trouble paying your state taxes, you should contact a tax pro right away. A CPA, tax lawyer, or enrolled agent (EA) can help you negotiate a payment plan with the Wisconsin DOR. They can also help you apply for an offer in compromise or find another resolution option for your tax debt. If you are unable to pay your state taxes, the Wisconsin DOR may garnish your wages. The amount they can take is up to 25% of your gross wages, which is the amount you earn before deductions for health care and child support are taken out.

Wisconsin State Income Tax Due Dates

Wisconsin’s 2024 state income tax due date is April 15. The due date is the same as the federal deadline. Individuals must file their returns by this date or face a penalty for late filing. However, if they are unable to pay the taxes they owe by April 15, they may request an extension by attaching a driver’s license or government-issued photo ID with their return.

In addition, the due date for corporate tax returns is June 15. If a business files a short-period return, it must make three estimated tax installment payments: March 15, June 15, and August 15. Additionally, the business must file Form 5S with the DOR. S-corporations that are on a federal fiscal year basis must also compute their annualized income using the apportionment percentage from their last filed return.