Wisconsin

Tax Rates:
- Tax Rate Range : * Low - 4.6%; High - 6.75%
- Income Brackets : Lowest - $9,160; Highest - $137,411
- Number of Brackets : 4
- Personal Exemptions : Single - $750; Married - $1,500; Dependents - $750; 65 or older - $1,000.
- Retirement Income Taxes : Wisconsin taxes your pension and annuity income similar to federal tax. Social Security and Railroad Retirement benefits, Military Pension and disability pay** are not taxable. Out-of-state government pensions are fully taxed.
Filing requirements and addresses :
- Department of Revenue PO Box 8902 Madison, WI 53708-8902 608-266-2776
- Request identification number by filing Form A-101 (Application for Permit):
- Income, Sales, and Excise Tax Division PO Box 8902 Madison, WI 53708-8902 608-266-2776
- Register for electronic funds transfer by filing Form A-103 (Application for Electronic Funds Transfer [EFT] Authorization):
- Department of Revenue Revenue Accounting - EFT Unit PO Box 8912 Madison, WI 53708-8912 608-264-9918
- Deposit and report semi monthly (by last day of month and 15th day of following month), monthly (by last day of following month), quarterly (by last day of month following end of quarter), or annual (by January 31) withholdings by filing Form WT-6 (Withholding Tax Deposit Report):
- Department of Revenue Box 93931 Milwaukee, WI 53293-0931
- Furnish annual summary statements of wages paid and taxes withheld to employees on Form W-2 (Wage and Tax Statement) and to state on Form WT-7 (Employers Annual Reconciliation of Income Tax Withheld from Wages) by January 31:
- Department of Revenue PO Box 8920 Madison, WI 53708-8920
- Report annual non-employee compensation in excess of $600 by filing Forms 9b or Forms 1099 by January 31:
- Department of Revenue PO Box 8908 Madison, WI 53708-8908
* The tax brackets reported are for single individuals. For married taxpayers, the same rates apply to income brackets ranging from $12,210 to $183,210.
** Disability pay are subjected more conditions. Please contact us for if you require additional details.

Tax Deductions

Standard Deduction :
A Single filier can deduct up to $8,460 and jointly filiers can deduct up to $15,240 maximum. The deduction phases out to zero for single filers at $82,500 and joint filers at $94,175.
Medical/Dental Deduction :
5% credit for expenses in excess of standard deduction
Federal Income Tax Deduction :
Winsconsin does not allow Federal Income Tax Deduction.

Tax Credits

Additional Tax Credits :
Each taxpayer and spouse over 65 get $25.00.
Working Families Tax Credit. :
Retired persons whose income is less than $10,000 ($19,000 joint filiers) are eligible for a Working Families Tax Credit. This credit could completely eliminates the Wisconsin income tax for persons, including retirees, who are full-year residents of Wisconsin. It is not necessary that you be employed, or that you have more than one person in your household, in order to claim this credit.
Homestead Tax Credit :
The Homestead Tax Credit is an income-based property tax credit program for homeowner and renters. It reduces the burden of property taxes through a direct payment to low and moderate income Wisconsin residents. The amount of the benefit varies depending on total household income and property tax liability. Renters count part of their rent as property taxes. For further information about the Homestead Tax Credit Program, please contact:
Wisconsin Department of Revenue, Homestead Credit Unit , P.O. Box 8906 , Madison, WI 53708-8906 (608) 266-8641
School Property Tax Credit :
Wisconsin has a school property tax credit that is available to homeowners. It is actually a credit against Wisconsin income tax liability. You can find more details about these credits here

Sales Taxes

State Sales Tax : 5% (food and prescription drugs exempt); County tax is 0.5%.
Gasoline Tax : 32.9 cents/gallon
Diesel Fuel Tax : 32.9 cents/gallon
Cigarette Tax : 77 cents/pack of 20

Payroll Taxes

State unemployment insurance (SUI)
- Address : Department of Workforce Development, Unemployment Insurance Division 201 East Washington Avenue PO Box 7946 Madison, WI 53707-7946 608-261-6700
- Register as employer by filing Form UCT-1 (Employer Report): Department of Industry, Labor, and Human Relations Unemployment Compensation Division PO Box 7942 Madison, WI 53707-7942 608-266-7942
- Report quarterly wages and contributions by filing Form UC-7823 (Quarterly Wage Report) and Form UCT-101A (Quarterly Contribution / Wage Report) by last day of month following end of quarter: With payment: Department of Industry, Labor, and Human Relations Unemployment Compensation Division PO Box 78960 Milwaukee, WI 53278-0960 Without payment: Department of Industry, Labor, and Human Relations Unemployment Compensation Division PO Box 7945 Madison, WI 53707-7945 608-266-6877
- Reserve ratio formula Rate schedule B in effect. 0.00% to 8.90% on $10,500 for 2007
- New employers with payroll < $500,000 use 3.25%, includes a .55% solvency tax.
- New employers with payroll > $500,000 use 3.40%
- New construction employers pay 6.60%, including the 0.9% solvency tax.
State labor laws :
- Child support
- new hire reporting
- minimum wage
Reciprocity states : Illinois, Indiana, Kentucky, Michigan, Minnesota

Estate Tax

There is no inheritance tax but Wisconsin does have an estate tax.
A new provision was added to the Wisconsin statutes for deaths occurring from October 1, 2002, through December 21, 2007. The federal credit for state death taxes and the federal estate tax for deaths occurring between those dates shall be commuted under the federal estate tax law in effect on December 31, 2000. For deaths occurring after October 1, 2007, the federal credit for state death taxes and the federal estate tax shall be computed under the federal estate tax law in effect on the date of the decedent's death.
This means that the Wisconsin filing requirement for filing the Wisconsin estate tax return, Form W706, will be $1,000,000 for deaths occurring from January 1, 2002, through September 30, 2002, and then go back to $675,000 for deaths occurring from October 1, 2002, through December 31, 2007. Therefore, the Wisconsin filing requirement will differ from the federal requirement, which is $1,000,000 in 2002 and 2003 and goes up in later years. This will be true even though no federal estate tax return will be required. For details on the estate tax, click here or call 608-266-2772.
For further information, visit the Wisconsin Department of Revenue site or call 608-266-2486.