Wisconsin has a progressive state income tax with rates ranging from 3.5% to 7.65%. The state has four tax brackets, with the top rate applying to income over $315,310 for single filers.
Wisconsin Tax Brackets (2026)
| Taxable Income (Single) | Tax Rate |
|---|---|
| $0 - $14,320 | 3.5% |
| $14,320 - $28,640 | 4.4% |
| $28,640 - $315,310 | 5.3% |
| $315,310+ | 7.65% |
Most Wisconsin workers fall into the 5.3% bracket. The top 7.65% rate only applies to high earners. These figures are based on Wisconsin Department of Revenue guidelines.
What You'll See on Your Paystub
A Wisconsin worker's paystub includes both federal income tax withholding and state deductions:
| Deduction | Rate | Notes |
|---|---|---|
| Federal Income Tax | Varies | Based on W-4 and income |
| Social Security | 6.2% | Up to $181,200 wage base |
| Medicare | 1.45% | No wage limit |
| Wisconsin State Income Tax | 3.5% - 7.65% | Based on income level |
Wisconsin Standard Deduction
Wisconsin's standard deduction phases out at higher incomes:
| Filing Status | Maximum Standard Deduction |
|---|---|
| Single | $13,230 |
| Married Filing Jointly | $24,490 |
| Head of Household | $17,090 |
Wisconsin's standard deduction phases out for higher earners. Single filers with income over $119,205 receive a reduced deduction.
No Local Income Taxes
Wisconsin does not allow cities or counties to impose local income taxes. Your state withholding covers all Wisconsin income tax obligations.
Reciprocity Agreements
Wisconsin has income tax reciprocity agreements with several states:
- Illinois: Wisconsin residents working in Illinois pay only Wisconsin tax
- Indiana: Wisconsin residents working in Indiana pay only Wisconsin tax
- Kentucky: Wisconsin residents working in Kentucky pay only Wisconsin tax
- Michigan: Wisconsin residents working in Michigan pay only Wisconsin tax
If you live in Wisconsin but work in Illinois, Indiana, Kentucky, or Michigan, file Form W-220 with your employer to have only Wisconsin taxes withheld.
Milwaukee Area Workers
Special considerations for Milwaukee metro workers:
- No city income tax (unlike some other major cities)
- Higher cost of living than rural Wisconsin
- Many employers offer Chicago-competitive wages
- Cross-border commuters should understand reciprocity rules
Wisconsin vs. Neighboring States
| State | Tax Structure | Top Rate |
|---|---|---|
| Wisconsin | Progressive | 7.65% |
| Minnesota | Progressive | 9.85% |
| Iowa | Flat | 3.8% |
| Illinois | Flat | 4.95% |
| Michigan | Flat | 4.25% |
Retirement Income
Wisconsin offers some retirement income benefits:
- Social Security benefits are exempt from state tax
- Some pension and retirement income qualifies for exclusion
- 401(k) and IRA distributions are generally taxable
- Military retirement pay is partially exempt
Comparing Take-Home Pay
Here's how a $75,000 annual salary in Wisconsin compares to other states:
| State | Effective Rate | Annual State Tax |
|---|---|---|
| Wisconsin | ~4.6% | ~$3,100 |
| Minnesota | ~5.5% | ~$3,600 |
| Illinois | ~4.95% | ~$3,300 |