What Changes in Your Paycheck in Wisconsin
Your paycheck in Wisconsin shows a Wisconsin state income tax line item that grows progressively through four brackets, starting at 3.54% for the first $1-$1. For a $1 salary, you might see ~ $1-$1 annually (~ $1-$1 per biweekly paycheck) for state tax, reflecting the progressive brackets with effective rates around 5%-6% Wisconsin paychecks only show state and federal tax deductions—no local income tax line items. The progressive brackets mean your state tax increases as you move through brackets, with very high earners reaching the 7.65% top rate. The brackets are relatively spread out, meaning most taxpayers don't quickly jump to the top rate like in compressed bracket states Retirees see no state tax on retirement income distributions, making Wisconsin attractive for those relying on retirement savings.
Example State Tax in Wisconsin
What you'll pay in Wisconsin state income tax at different salary levels (single filer, no deductions):
| Gross Salary | State Tax (Year) | Effective Rate |
|---|---|---|
| $50,000 | $2,534 | 5.1% |
| $75,000 | $4,102 | 5.5% |
| $100,000 | $5,669 | 5.7% |
| $150,000 | $8,804 | 5.9% |
Use the calculator above to see your exact take-home pay with your filing status and deductions.
Is Wisconsin Better for You?
Wisconsin works well for:
Wisconsin works best for lower and middle-income earners (under ~ $1 for singles, $1 for couples) who benefit from the progressive brackets with lower starting rates (3.54%-4.65%). At these income levels, effective state tax rates are 3.5%-5%, which can be competitive with or lower than some flat-tax states. Retirees also benefit from exemptions on Social Security and most retirement income, making Wisconsin attractive for those relying on retirement savings.
Wisconsin may not be ideal if:
Wisconsin is challenging for high earners (~ $1+ for singles, $1+ for couples) because they reach the higher 6.27%-7.65% rates. Someone earning $1 in Wisconsin pays an effective rate around 5.5%-6.5% (~ $1-$1 annually), while the same earner in a flat-tax state like Pennsylvania would pay $1 (3.07% flat, though PA may have local EIT), and in North Carolina would pay $1 (4.75% flat). High earners with geographic flexibility save $1-$1+ annually by moving to lower-tax states.
Key Facts That Affect Your Take-Home Pay
- Wisconsin uses a progressive income tax system with four brackets, starting at 3.54% for the first $1 of income (single) or $1 (married) and escalating to a top rate of 7.65% for income above $1 (single) or $1 (married), making Wisconsin's bracket structure relatively simple but with high rates across all brackets.
- Wisconsin's progressive brackets are relatively spread out at the bottom, meaning middle-income earners stay in the lower 3.54%-6.27% brackets longer, while only very high earners reach the top 7.65% rate. For a $1 earner, most income is taxed at 3.54%-6.27%, creating an effective rate around 5%-6%, not the top 7.65% rate.
- Wisconsin does not levy income taxes at the city or county level, ensuring consistent income tax structure throughout the state. All Wisconsin residents have the same income tax structure—only the state progressive brackets apply.
- Wisconsin does not tax Social Security or retirement income (pensions, 401(k) withdrawals, IRA distributions) for residents, making the state attractive for retirees despite the progressive income tax structure. However, property taxes in Wisconsin can be significant, especially in certain areas, offsetting some retirement benefits.
Common Mistakes People Make
Misconception: 'Progressive tax means I'll pay the top 7.65% on all my income in Wisconsin.' Reality: Wisconsin's progressive system starts at 3.54% for the first $1-$1 of income (depending on filing status), and most middle-income earners pay effective rates around 5%-6%, not 7.65%. The 7.65% rate only applies to income above $1 (single) or $1 (married). Someone earning $1 pays an effective rate around 5%-6% (~ $1-$1 annually).
Misconception: 'Wisconsin has low taxes because it's a Midwestern state.' Reality: Wisconsin's income tax starts at 3.54% (moderate starting rate) and tops out at 7.65%, which is among the higher rates in the nation. A $1 earner pays an effective rate around 5%-6%, while the same earner in a flat-tax state like Pennsylvania would pay $1 (3.07% flat, though PA may have local EIT). Wisconsin's progressive brackets and relatively high rates mean most earners pay more than in lower-tax states.
Misconception: 'The four brackets mean my tax is simple like flat-tax states.' Reality: While Wisconsin has only four brackets (simpler than states with many brackets), the brackets are progressive with rates ranging from 3.54% to 7.65%. Unlike flat-tax states where everyone pays the same percentage, Wisconsin's progressive system means higher earners pay significantly higher effective rates The brackets are spread out, meaning most taxpayers don't quickly jump to the top rate like in compressed bracket states.
One Thing to Know
Wisconsin's brackets are relatively spread out compared to compressed-bracket states, meaning taxpayers move through rates more gradually. However, the starting rate of 3.54% is higher than many progressive states, which means even lower earners pay more than they might expect compared to states with lower starting brackets.
Important Notes
These calculations are estimates based on current tax law. Your actual take-home pay varies based on:
- Pre-tax deductions (401(k), health insurance, HSA, etc.)
- Your W-4 withholding elections
- Additional income or deductions at tax time
- Individual circumstances and tax situations
Tax rates are subject to change. Federal and state tax laws may be updated annually. This is not tax advice. For personalized help, consult a tax professional familiar with Wisconsin tax laws.