State Income Tax

Income Tax in Wisconsin: Complete Guide 2026

Updated 2026-03-10

Data Notice: Figures, rates, and statistics cited in this article are based on the most recent available data at time of writing and may reflect projections or prior-year figures. Always verify current numbers with official sources before making financial, medical, or educational decisions.

Income Tax in Wisconsin: Complete Guide 2026

Tax information is for educational purposes only and does not constitute tax advice. Consult a licensed tax professional for your specific situation.

Wisconsin uses a graduated income tax system with four brackets, ranging from ~3.50% on the lowest incomes to ~7.65% on earnings above ~$315,310 for single filers. The Badger State’s top rate is among the highest in the Midwest, though recent legislative proposals have sought to flatten or reduce the bracket structure. Wisconsin does not impose local income taxes, so the state rate represents the full state-level income tax burden for residents.

Wisconsin Income Tax Rates (2026)

Single Filers

Taxable IncomeRate
$0 — ~$14,320~3.50%
~$14,321 — ~$28,640~4.40%
~$28,641 — ~$315,310~5.30%
Over ~$315,310~7.65%

Married Filing Jointly

Taxable IncomeRate
$0 — ~$19,090~3.50%
~$19,091 — ~$38,190~4.40%
~$38,191 — ~$420,420~5.30%
Over ~$420,420~7.65%

How Wisconsin Income Tax Works

Graduated Bracket System

Wisconsin’s four-bracket structure means your income is taxed in layers. The first dollars you earn are taxed at ~3.50%, with successively higher rates applied to income in each bracket. Only income within a specific bracket range is taxed at that bracket’s rate, not your entire income.

For example, a single filer earning ~$50,000 would pay ~3.50% on the first ~$14,320, ~4.40% on the next ~$14,320, and ~5.30% on the remaining ~$21,360, resulting in an effective tax rate lower than the marginal rate.

Standard Deduction

Wisconsin offers its own standard deduction, which varies by filing status and is subject to a sliding scale phase-out based on income:

Filing StatusMaximum Standard DeductionPhase-Out Begins
Single~$12,760~$36,293
Married filing jointly~$23,620~$36,293
Head of household~$17,380~$27,220

For filers with Wisconsin AGI above the phase-out threshold, the standard deduction is reduced by a percentage of the excess, eventually reaching zero for high earners.

Itemized Deductions

Wisconsin allows itemized deductions on Schedule I but with key differences from the federal system:

  • Mortgage interest: Deductible on Schedule I
  • Charitable contributions: Deductible with Wisconsin modifications
  • State and local taxes: Not deductible on the Wisconsin return (to avoid circular taxation)
  • Medical expenses: Deductible to the extent they exceed ~7.50% of federal AGI

Retirement Income

Wisconsin taxes most retirement income, including pensions, 401(k) and IRA distributions. However, Social Security benefits are fully exempt from Wisconsin income tax. Military retirement pay is also exempt.

Wisconsin Tax Credits

  1. Earned Income Credit: ~4% of the federal EITC for filers with one child, ~11% for two children, and ~34% for three or more children.
  2. Homestead Credit: Available to renters and homeowners with household income under ~$24,680, worth up to ~$1,168.
  3. School Property Tax Credit: A non-refundable credit available to homeowners and renters, typically around ~$300 or based on the statewide school levy rate.
  4. Working Families Tax Credit: Additional credit for families with qualifying dependents.
  5. 529 Plan Deduction: Contributions to an Edvest or Tomorrow’s Scholar 529 account are deductible up to ~$3,860 per beneficiary per year.

Who Must File in Wisconsin

You must file a Wisconsin income tax return if:

  • You are a full-year resident with gross income exceeding your standard deduction plus personal exemption
  • You are a part-year resident or nonresident with Wisconsin-source income
  • You owe alternative minimum tax or recapture of credits
  • You want to claim a refund of Wisconsin withholding

Wisconsin uses Form 1 for individual returns, with the filing deadline matching the federal date, typically April 15.

Comparison to National Average

StateTop Income Tax RateBrackets
Wisconsin~7.65%4
Minnesota~9.85%4
Illinois~4.95%1 (flat)
Iowa~5.70%4
Michigan~4.25%1 (flat)
National average~4.60%Varies

Wisconsin’s top rate of 7.65% is well above the national average and higher than most neighboring states except Minnesota. However, the threshold for the top bracket ($315,310 for single filers) means most taxpayers fall in the ~5.30% bracket or lower.

Tips for Minimizing Wisconsin Income Tax

  1. Maximize 529 contributions. Wisconsin’s deduction of up to ~$3,860 per beneficiary directly reduces your state taxable income.

  2. Claim the Homestead Credit. Renters and homeowners with modest incomes can receive a refundable credit of up to ~$1,168.

  3. Understand the standard deduction phase-out. If your income is near the phase-out threshold, strategies to reduce Wisconsin AGI (such as retirement contributions) can preserve more of your deduction.

  4. Take advantage of the large EITC for families. Wisconsin’s earned income credit is ~34% of the federal credit for families with three or more children, one of the most generous state matches.

  5. Contribute to retirement accounts. Traditional 401(k) and IRA contributions reduce federal AGI, which flows through to your Wisconsin return.

  6. Review itemization carefully. Wisconsin’s itemized deduction rules differ from federal, so compare your standard deduction to itemized amounts using Wisconsin-specific calculations.

  7. Track the School Property Tax Credit. Even renters may qualify for this credit through their landlord’s property taxes.

Key Takeaways

  • Wisconsin has four income tax brackets ranging from ~3.50% to ~7.65%.
  • There are no local income taxes in Wisconsin, simplifying the filing process.
  • The standard deduction phases out as income rises, potentially reducing its value for moderate and higher earners.
  • Social Security benefits are fully exempt from Wisconsin income tax.
  • The state EITC is exceptionally generous for families with three or more children at ~34% of the federal credit.
  • 529 plan contributions are deductible up to ~$3,860 per beneficiary.

Next Steps