State & Local Taxes
Wisconsin State Income Tax: 2026 Rates and Brackets
Wisconsin state income tax runs on four brackets with rates from 3.50% to 7.65%, applied progressively to your Wisconsin taxable income. The statutory rates are fixed in law, while the dollar thresholds that define each bracket adjust every year for inflation. The figures below reflect the most recently published tax-year schedule; 2026 thresholds shift slightly upward with inflation, but the rate structure holds.
Wisconsin also uses a sliding-scale standard deduction that shrinks as income rises, and it fully excludes Social Security from taxable income. A subtraction added by 2025 Wisconsin Act 15 now lets many residents age 67 and older remove a large slice of retirement income.
Wisconsin income tax rates and brackets
Wisconsin applies four marginal rates: 3.50%, 4.40%, 5.30%, and 7.65%. Each rate hits only the income that falls inside its band, so a higher bracket never taxes your entire income. Your effective rate, the share of total income actually paid, sits below your top marginal rate in almost every case.
The table below shows the bracket thresholds by filing status. Married-separate filers generally use half the joint thresholds, and head-of-household filers use the single schedule.
| Rate | Single / Head of Household | Married Filing Jointly |
|---|---|---|
| 3.50% | $0 to $14,680 | $0 to $19,580 |
| 4.40% | $14,680 to $50,480 | $19,580 to $67,300 |
| 5.30% | $50,480 to $323,290 | $67,300 to $431,060 |
| 7.65% | Over $323,290 | Over $431,060 |
The 5.30% band is by far the widest, so most middle-income and upper-middle-income Wisconsin residents pay a top marginal rate of 5.30%. The 7.65% rate reaches only income above roughly $323,000 for single filers and $431,000 for joint filers. Thresholds are indexed annually, so expect them to move a few percent higher for the 2026 tax year.
How the Wisconsin standard deduction phases out
Wisconsin’s standard deduction is not a flat amount. It starts at a maximum, then falls as Wisconsin adjusted gross income (WAGI) climbs, and can reach $0 for higher earners. This sliding-scale standard deduction (often abbreviated SSSD) is why two households with the same gross pay can owe very different Wisconsin tax.
The maximum deduction is roughly $12,760 for single filers and about $23,620 for married couples filing jointly, based on the latest published schedule. Once WAGI passes a filing-status threshold (near $19,000 for single filers), the deduction is reduced by a fixed percentage of every additional dollar of income.
Because the exact figure depends on your WAGI and filing status, use the Standard Deduction Table in the current Form 1 instructions rather than a single headline number. If your deduction phases to $0, itemizing may not help either, since Wisconsin’s itemized deduction credit works differently from the federal itemized deduction. Compare both approaches before filing, as covered in our guide to choosing the standard versus itemized deduction.
How Wisconsin taxes retirement income
Wisconsin does not tax Social Security benefits or Railroad Retirement benefits, and it fully exempts military retirement pay and most uniformed-services pensions. Beginning with the 2025 tax year, a subtraction under 2025 Wisconsin Act 15 lets qualifying residents age 67 or older remove a substantial amount of other retirement income from Wisconsin tax.
Under that subtraction, a taxpayer who is at least 67 by year-end may subtract up to $24,000 of eligible retirement income. A married couple filing jointly where both spouses are 67 or older may subtract up to $48,000. Eligible income generally includes federally taxable distributions from qualified retirement plans and IRAs that have not already been removed elsewhere on the return.
Two limits matter. A taxpayer who claims this subtraction may not also claim Wisconsin income tax credits on the same return, so run the math both ways to see which produces the lower total. Nonresidents cannot claim the subtraction at all. A separate, older subtraction of up to $5,000 remains available to some filers age 65 and older with low federal AGI, and certain pre-1964 government pensions stay fully exempt.
Distributions from IRAs, 401(k)s, and pensions are reported to you and the state on Form 1099-R; our explainer on what Form 1099-R reports walks through each box. The account type you draw from matters too, which is why the Roth versus traditional IRA decision affects your Wisconsin bill, not just your federal one.
Residency and who owes Wisconsin income tax
Full-year Wisconsin residents owe tax on all income, wherever it is earned. Part-year residents and nonresidents owe tax only on Wisconsin-source income, such as wages for work performed in the state, income from a Wisconsin business, or rent from Wisconsin property. Nonresidents and part-year residents file Form 1NPR instead of the standard Form 1.
Wisconsin maintains wage reciprocity with Illinois, Indiana, Kentucky, and Michigan. If you live in one of those states and work in Wisconsin (or the reverse), your wages are generally taxed only by your home state, provided the correct exemption form is on file with your employer. Reciprocity covers wages and salaries, not business or investment income.
Residency for tax purposes turns on domicile, your permanent legal home, not just where you spend a given month. Moving out of state mid-year does not automatically end Wisconsin residency if your domicile stays put. For a broader look at how state rules layer on top of federal filing, see our overview of state versus federal income tax.
Wisconsin compared with nearby states
Wisconsin’s top rate of 7.65% is higher than several neighbors, but its wide 5.30% band means most residents never reach the top rate. The comparison that matters is your effective rate, which blends all four brackets plus the standard deduction phase-out.
| State | Number of brackets | Top marginal rate |
|---|---|---|
| Wisconsin | 4 | 7.65% |
| Illinois | 1 (flat) | ~4.95% |
| Ohio | 3 | ~3.50% |
| Michigan | 1 (flat) | ~4.25% |
A flat-rate neighbor can still leave a lower-income filer paying more, because flat systems lack Wisconsin’s graduated low brackets and its retirement subtractions. To see how graduated brackets translate into what you actually pay, read our breakdown of marginal versus effective tax rate, and compare directly against Ohio’s state income tax.
Frequently asked questions
What are the Wisconsin income tax rates for 2026?
Wisconsin uses four marginal rates: 3.50%, 4.40%, 5.30%, and 7.65%. These statutory rates are set in law and do not change year to year. Only the income thresholds that define each bracket adjust annually for inflation, so the 2026 bands sit slightly higher than the prior year’s while the rates stay the same.
Does Wisconsin tax Social Security or retirement income?
Wisconsin does not tax Social Security or Railroad Retirement benefits, and it fully exempts military retirement pay. For other retirement income, residents age 67 or older may subtract up to $24,000 ($48,000 for joint filers where both are 67+) under 2025 Wisconsin Act 15, though claiming it can bar you from claiming certain state tax credits the same year.
How does Wisconsin’s sliding-scale standard deduction work?
Wisconsin’s standard deduction starts at a maximum (around $12,760 single and $23,620 married filing jointly) and shrinks as Wisconsin adjusted gross income rises, reaching $0 for higher earners. Because the amount depends on your income and filing status, the exact figure comes from the Standard Deduction Table in the Form 1 instructions rather than a fixed number.
Who has to file a Wisconsin income tax return?
Full-year residents generally must file if gross income exceeds a filing threshold that varies by age and filing status. Part-year residents and nonresidents file Form 1NPR and owe tax only on Wisconsin-source income, such as wages earned in the state or income from Wisconsin property or businesses.
Does Wisconsin have reciprocity with other states?
Yes. Wisconsin has wage reciprocity with Illinois, Indiana, Kentucky, and Michigan. If you live in one of those states and work in Wisconsin, your wages are generally taxed only by your home state, as long as the proper exemption certificate is filed with your employer. Reciprocity applies to wages and salaries, not to business or investment income.
What is the top Wisconsin income tax rate and who pays it?
The top Wisconsin rate is 7.65%, and it applies only to taxable income above roughly $323,000 for single filers and $431,000 for married couples filing jointly. Most residents fall inside the 5.30% band, so they never reach the top rate. Only the income above the threshold is taxed at 7.65%, not the entire amount.
Reviewed by The Ledgerism Editorial Team. Last reviewed: July 2026.