Wisconsin — Personal Income Tax

Wisconsin residents, part-year residents, and nonresidents with Wisconsin-source income may be required to file a personal income tax return depending on gross income, filing status, age, and dependency status.

Source: Wis. Stat. § 71.03(2)(a)(a))

## Residents

Wisconsin residents must file if their gross income meets or exceeds threshold amounts that vary by filing status and age. For the 2025 tax year, single residents under age 65 must file if gross income is $14,260 or more; married residents filing jointly (both under age 65) must file if gross income is $26,510 or more. Higher age-based thresholds apply for taxpayers age 65 or older.

Source: Wisconsin DOR Individual Income Tax Filing Requirements

Gross income means all income before deducting expenses that is reportable to Wisconsin. It includes income received in the form of money, property, or services, but excludes items exempt from Wisconsin tax, such as Social Security benefits and U.S. government interest.

Source: Wisconsin DOR Individual Income Tax Filing Requirements

## Dependents

Taxpayers who can be claimed as a dependent on someone else's return face different filing thresholds. A dependent must file a Wisconsin return if either: (1) gross income exceeds $1,350 and includes at least $451 of unearned income (interest, dividends, capital gain distributions, or taxable scholarships not reported on Form W-2), or (2) gross income exceeds filing-status-specific thresholds.

Source: Wisconsin DOR Individual Income Tax Filing Requirements

## Nonresidents and Part-Year Residents

Nonresidents and part-year residents must file if their Wisconsin gross income is $2,000 or more. For married couples in this category, the combined gross income threshold is $2,000. Wisconsin gross income for nonresidents and part-year residents includes only income from Wisconsin sources.

Source: Wisconsin DOR Publication 122, Tax Information for Part-Year Residents and Nonresidents

Nonresidents must measure gross income before expenses are deducted. For example, a nonresident partner receiving net partnership income below $2,000 may still be required to file if their proportionate share of partnership gross income equals or exceeds $2,000.

Source: Wisconsin DOR Individual Income Tax Filing Requirements

## Additional Filing Requirements

Certain taxpayers must file even if income falls below the standard thresholds. This includes individuals who owe a penalty on an IRA, retirement plan, Coverdell education savings account, ABLE account, health savings account, or Archer medical savings account.

Source: Wisconsin DOR Individual Income Tax Filing Requirements

The Wisconsin Department of Revenue retains authority to require any person other than a corporation to file an income tax return when, in the department's judgment, a return should be filed.

Source: Wis. Stat. § 71.03(6)(b)(b))

Wisconsin applies four marginal personal income tax rates to single filers and heads of household, with bracket thresholds adjusted annually for inflation. The base statute is Wis. Stat. § 71.06(1r), which requires the Department of Revenue to update the brackets each year based on the CPI. The marginal rates themselves have not changed for 2025 or 2026, but the bracket thresholds are indexed upward.

2025 Tax Year (returns filed in 2026):

• 3.50% on taxable income up to $14,680
• 4.40% on taxable income over $14,680 up to $50,480
• 5.30% on taxable income over $50,480 up to $323,290
• 7.65% on taxable income over $323,290

2026 Tax Year (returns filed in 2027):

• 3.50% on taxable income up to $15,110
• 4.40% on taxable income over $15,110 up to $51,950
• 5.30% on taxable income over $51,950 up to $332,720
• 7.65% on taxable income over $332,720

These amounts are published in the official Wisconsin DOR '2026 Form 1‑ES Instructions,' which confirm the indexed brackets for 2026. The statute provides the structure and indexation mechanism; official schedules provide annual implementation.

Authority:

• Rate structure and statutory indexing: Wis. Stat. § 71.06(1r)
• 2026 tax brackets: Wisconsin DOR, 2026 Form 1-ES Instructions, p. 3
• General reference: Wisconsin DOR, Tax Rates FAQs

Source: Wis. Stat. § 71.06(1r) Source: Wisconsin DOR, 2026 Form 1-ES Instructions, Page 3 Source: Wisconsin DOR, Tax Rates FAQs

Not yet human confirmed. This update repairs the broken link to the DOR 2026 Form 1-ES Instructions. No rate or bracket change detected since prior update as of July 2026.

Wisconsin applies four marginal tax rates to married couples filing jointly for tax years beginning after December 31, 2024. Taxable income from $0 to $19,580 is taxed at 3.50%; income exceeding $19,580 but not exceeding $67,300 is taxed at 4.40%; income exceeding $67,300 but not exceeding $431,060 is taxed at 5.30%; and income exceeding $431,060 is taxed at 7.65%.

Source: Wis. Stat. § 71.06(2)(k)

Wisconsin personal income tax is imposed on the net income of individuals and fiduciaries. Wisconsin taxable income begins with federal adjusted gross income, then applies Wisconsin-specific modifications prescribed in Wis. Stat. § 71.05, subtracts the Wisconsin standard deduction, and subtracts the personal exemption. This federal conformity framework means Wisconsin generally follows federal income definitions while layering state additions and subtractions.

Source: Wis. Stat. § 71.01(13), Wis. Stat. § 71.01(16), Wis. Stat. § 71.02(1)

Wisconsin determines individual residency for personal income tax purposes solely on the basis of domicile. An individual is a Wisconsin resident if domiciled in Wisconsin for the entire taxable year, a part-year resident if domiciled in Wisconsin for part of the taxable year, and a nonresident if not domiciled in Wisconsin at any time during the taxable year.

## Statutory Definition of Domicile

Wisconsin statute defines "domicile" as an individual's true, fixed, and permanent home where the individual intends to remain permanently and indefinitely and to which, whenever absent, the individual intends to return. No individual may have more than one domicile at any time.

Source: Wis. Stat. § 71.01(1n)

The Wisconsin Department of Revenue applies a consistent definition across its guidance: domicile is the permanent legal home a person intends to use for an indefinite or unlimited period and to which, when absent, the person intends to return. Physical presence in Wisconsin is not required to maintain Wisconsin domicile, and a person may be physically present or residing in one state while maintaining domicile in another.

Source: Wisconsin DOR Publication 122, Tax Information for Part-Year Residents and Nonresidents

## Intent as the Controlling Factor

Wisconsin residency turns on the taxpayer's intent regarding permanence of residence, not on physical presence alone. A legal resident of Wisconsin is a person who maintains domicile in Wisconsin, whether or not physically present in Wisconsin or living outside the state. A person has only one domicile at any point in time.

Source: Wisconsin DOR Legal Residence/Domicile FAQ

## Factors the Department Considers

The Department of Revenue examines many factors to determine domicile, including where the individual lives, where the individual votes, where the individual registers vehicles, and where the individual owns or rents property. When an individual claims a change of domicile, the department may require the individual to complete a Legal Residence (Domicile) Questionnaire.

Source: Wisconsin DOR Legal Residence/Domicile FAQ

Wisconsin administrative regulation requires individuals claiming a change of residence (domicile) from Wisconsin to another state to file the "Residence Questionnaire," which is a part of the Form 1NPR income tax form, with the Wisconsin Department of Revenue by attaching it to their Wisconsin income tax return for the year they claim to have changed residence, and to furnish other information the department may require.

Source: Wis. Admin. Code Tax 2.01

## Dual-State Residency Possible

Wisconsin's domicile-only test can result in dual-state residency when another state applies a different residency standard. For example, Illinois defines a resident to include any individual who is in Illinois for other than a temporary or transitory purpose during the taxable year, even if domiciled elsewhere. A person domiciled in Wisconsin who takes a job in Illinois intending to return to Wisconsin in two to three years remains a resident of Wisconsin for Wisconsin tax purposes (because still domiciled in Wisconsin) but may simultaneously be a resident of Illinois if Illinois considers the stay other than temporary or transitory.

Source: Wis. Admin. Code Tax 2.02(6)(b)

Wisconsin taxes nonresidents only on income derived from Wisconsin sources. The statutory framework distinguishes among wage and salary income, business income, pass-through entity income, rental income, and intangible income, applying different sourcing rules to each category.

## Wage and Salary Income: Services-Performed Rule

Employee compensation is taxable by Wisconsin only if the services are performed in Wisconsin. A nonresident who performs services for an employer in Wisconsin owes Wisconsin tax on the wages attributable to those services, regardless of where the employer is located or where the employee is paid. Conversely, a nonresident who performs services entirely outside Wisconsin owes no Wisconsin tax on those wages, even if the employer has a Wisconsin office or the paycheck is issued from Wisconsin.

Example: A Florida resident spends four months at a cottage in northern Wisconsin and works part-time at a local gift shop during that time. The income earned from the part-time job is taxable by Wisconsin because the services were performed in Wisconsin.

Source: Wisconsin DOR Publication 122, Tax Information for Part-Year Residents and Nonresidents

## Business Income: Allocation and Apportionment

Nonresident individuals and nonresident estates and trusts engaged in business both within and outside Wisconsin are taxed only on income derived from business transacted and property located within Wisconsin. Wisconsin statute § 71.04(4) establishes a two-step method:

Step 1 – Allocation. The taxpayer may determine the amount of income attributable to Wisconsin by allocation and separate accounting when the business within Wisconsin is not an integral part of a unitary business. However, the Department of Revenue must approve this method, and the department will permit it only when satisfied that allocation and separate accounting will properly reflect the income taxable by Wisconsin.

Step 2 – Apportionment (when allocation is not permissible). When allocation and separate accounting are not permissible, the determination is made by formula apportionment. For all businesses except air carriers, financial organizations, telecommunications companies, pipeline companies, public utilities, railroads, and car line companies, the taxpayer first deducts from total net income the portion (less related expenses) that follows the situs of the property or the residence of the recipient. The remaining net income is then apportioned using a formula based on the business's presence in Wisconsin.

Source: Wis. Stat. § 71.04(4)

## Partnership and LLC Income: Attributable-Activity Rule

Nonresident partners and members of limited liability companies recognize their proportionate share of all items of income, loss, or deduction attributable to a business in, services performed in, or rental of property in Wisconsin. This is a facts-and-activities sourcing rule, not a statutory-allocation rule. Partnership or LLC agreements cannot override this sourcing principle; Wisconsin statute § 71.04(3)(c) requires partners and members to disregard, for Wisconsin sourcing purposes, any provisions in partnership or LLC agreements that characterize payments as services or capital, that allocate income from Wisconsin sources to out-of-state sources, or that allocate a disproportionate share of Wisconsin-source losses to a partner or member.

Source: Wis. Stat. § 71.04(3) and § 71.04(4m)

## S Corporation (Tax-Option Corporation) Income

Nonresidents deriving income from a Wisconsin tax-option corporation (S corporation) that is engaged in business within and outside Wisconsin are taxed only on the income of the corporation derived from business transacted and property located in Wisconsin. Losses and other deductible items of the corporation are likewise limited to the shareholder's proportionate share of the Wisconsin loss or other item. For sourcing purposes, all intangible income of tax-option corporations passed through to shareholders is treated as business income that follows the situs of the business, not the residence of the shareholder.

Source: Wis. Stat. § 71.04(9)

## Specific Sourcing Rules for Selected Income Types

Gambling winnings. Income from winnings from a casino or bingo hall located in Wisconsin and operated by a Native American tribe or band follows the situs of the casino or bingo hall and is taxable by Wisconsin to nonresidents. Lottery winnings from tickets purchased in Wisconsin are also allocated to Wisconsin.

Covenants not to compete. Income derived by a nonresident from a covenant not to compete is taxable by Wisconsin to the extent the covenant was based on a Wisconsin-based activity.

Intangible income (interest, dividends, capital gains from securities). All other income or loss of nonresident individuals and nonresident estates and trusts, including income or loss derived from land contracts, mortgages, stocks, bonds, and securities or from the sale of similar intangible personal property, follows the residence of the taxpayer, not the location of the payor or the underlying property. Such income is generally not taxable by Wisconsin when received by a nonresident, except that lottery-prize income from winning tickets originally purchased in Wisconsin is allocated to Wisconsin.

Real property. Gain or loss from the sale of Wisconsin real property is Wisconsin-source income for a nonresident. Rental income from Wisconsin real property is likewise Wisconsin-source income.

Source: Wis. Stat. § 71.04(1)(a) and (b)

## Reciprocity Agreements

Wisconsin has income tax reciprocity agreements with Illinois, Indiana, Kentucky, and Michigan. Under these agreements, a resident of one of these four states who works in Wisconsin but does not maintain domicile in Wisconsin is not subject to Wisconsin income tax on wage and salary income. The employee must complete Wisconsin Form W-220 (Nonresident Employee's Withholding Reciprocity Declaration) and submit it to the employer to prevent Wisconsin withholding. Reciprocity applies only to wage and salary income; it does not apply to self-employment income, partnership income, or gambling winnings.

Source: Wisconsin DOR Publication 122, Tax Information for Part-Year Residents and Nonresidents

Wisconsin taxable income starts with federal adjusted gross income (AGI), but specific statutory modifications apply—most notably to capital gains. Wisconsin law provides three primary individual capital gain exclusions: the 60% farm assets exclusion, the 30% exclusion for most other long-term gains, and the federal-conformity exclusion for qualified small business stock. Details, eligibility, and documentation requirements are as follows:

1. 60% Exclusion for Long-Term Gain from Farm Assets

• Wisconsin law excludes 60% of the net long-term capital gain from the sale of “farm assets.” To qualify: (a) The asset must be real property or depreciable personal property used in farming, or eligible livestock (other than poultry or horses) held for draft, breeding, or dairy purposes; (b) The asset must have been used by the taxpayer or a family member in a farm business for at least two years; (c) "Farming" is defined by reference to IRC § 464(e) and includes cultivation of land, raising of crops/livestock, and related activities—mere land rental does not suffice; (d) Holding period must exceed one year.
• The Wisconsin Department of Revenue requires reporting and substantiation of qualifying status on Schedule WD, and recommends retention of records evidencing asset type, use, holding period, and business activity.
• There is no 100% exclusion for farm assets under Wisconsin law.

2. Exclusion for Qualified Small Business Stock (IRC § 1202)

• Wisconsin adopts the federal treatment of qualified small business stock under IRC § 1202. If federal law allows for a 50%, 75%, or 100% exclusion (based on asset acquisition date and meeting all federal requirements), the same percentage exclusion applies for Wisconsin. Only C corporation stock may qualify—interests in S corporations, LLCs, or partnerships do not.
• Taxpayers must meet all federal requirements, including five-year holding period and original issuance/active business rules. For stock acquired after September 27, 2010, a 100% exclusion applies if federal rules are met; otherwise, the applicable 50% or 75% rate applies. Documentation supporting the federal exclusion must also be retained for Wisconsin tax purposes.

3. 30% Exclusion for Most Other Long-Term Capital Gains

• Wisconsin provides a 30% exclusion for net long-term capital gain from the sale of most other qualifying property held more than one year, except certain assets such as collectibles or non-qualifying sales of business ordinary income property. Short-term capital gains are not eligible.
• For all claim types, substantiation and reporting via Schedule WD are required. Inadequate documentation may result in denial of the exclusion amount.

Other Principal Additions and Subtractions (Summary, see prior version for details):

• Social Security and U.S. government bond interest are fully subtracted; most public pensions remain excludable if qualified. Federal NOL deductions and non-Wisconsin municipal bond interest are added back. See full Wis. Stat. § 71.05 and DOR Pub 113 for less common addbacks/subtractions.

Authority and Recent Developments:

• All capital gain exclusion and conformity provisions derive from Wis. Stat. § 71.05(6)(b)9, 6, 6m, and related subsections. For farm asset definitions and use, see Schedule WD instructions and DOR Publication 103 (2026) p. 9–10. For qualified small business stock conformity, see DOR Pub 103 (2026) p. 10. Recent legislative changes (e.g., indexation amounts, technical clarifications) have not altered capital gain exclusion categories as of June 2026.

Source: Wis. Stat. § 71.05 Source: Wisconsin DOR Schedule WD Instructions (2022), pp. 2, 7–8 Source: Wisconsin DOR Publication 103, Capital Gains and Losses (Jan. 2026), pp. 9–10

Wisconsin provides a standard deduction to most individual filers, but unlike the federal standard deduction, it is calculated according to income and filing status rather than as a flat amount. The standard deduction has both a maximum value and a phaseout feature based on the taxpayer’s Wisconsin income.

Standard Deduction Amounts for Tax Year 2025 The maximum standard deduction for each filing status for tax year 2025 is as follows:

• Single/Head of Household: Up to $13,560; phases out as income exceeds $16,660 and reaches zero at $120,150.
• Married Filing Jointly: Up to $25,110; phases out as income exceeds $23,220 and reaches zero at $176,220.
• Married Filing Separately: Up to $12,560; phases out as income exceeds $11,610 and reaches zero at $87,810.

The deduction declines as income rises, following a formula set out in statute (Wis. Stat. § 71.05(22)) and published annually in the official DOR Form 1 Instructions. Once income exceeds the upper threshold, the standard deduction is fully phased out and unavailable.

Phaseout Mechanism The standard deduction begins to decrease for every dollar of income above the lower threshold and is eliminated entirely at the upper threshold for each filing status. The phaseout is computed per the Standard Deduction Table in the instructions to Form 1. Taxpayers must refer to the current year’s table to determine their deduction, as amounts are indexed for inflation each year under Wis. Stat. § 71.05(22)(f).

Authority The phaseout table and maximum deduction amounts are published in the Wisconsin Department of Revenue's Form 1 Instructions each tax year. The DOR instruction manual is the controlling authority for annual deduction and phaseout amounts.

Source: Wisconsin DOR 2025 Form 1 Instructions, Standard Deduction Table, p. 33 Source: Wis. Stat. § 71.05(22)

Not yet human confirmed. Section states exact amounts and phaseouts for tax year 2025 and provides statutory mechanism for future years.

Wisconsin personal income tax returns (Form 1, 1NPR, etc.) are generally due on or before April 15 following the close of the taxable year, aligning with the federal individual income tax due date. If April 15 falls on a weekend or legal holiday, the due date advances to the next business day (e.g., for tax year 2025, returns are due April 15, 2026).

Extensions—Automatic federal extension recognized; notification required: If a taxpayer obtains a federal extension (commonly IRS Form 4868, extending filing to October 15), Wisconsin allows the same extension for the state return. Wisconsin requires a copy of the federal extension application (or other evidence of extension) to be attached to the Wisconsin return when filed. There is no separate Wisconsin extension application for individuals.

Extension limits:

• An extension grants more time to file, but does NOT extend the time to pay. Interest and possible penalties accrue on amounts not paid by the original due date.

Penalty and Interest Provisions for Late Filing, Late Payment, and Underpayment

Late filing fee and delinquent interest:

• A $50 late filing fee is assessed on individual returns filed after the due date (including extensions).
• Interest on unpaid tax accrues from the original due date until payment at 1.5% per month (18% annually). If the taxpayer has a valid federal extension, the rate is 1% per month (12% annually) during the extension period.

Negligence penalty:

• 5% of the unpaid tax for each month (or part thereof) the return is late, up to a maximum of 25%. This penalty is in addition to interest and applies even if a balance is not owed, as long as the return is late.

Incorrect, incomplete, or fraudulent return penalties:

• 25% of the additional tax attributable to previously undisclosed income/circumstances (if DOR finds missing or incorrect information), under Wis. Stat. § 71.83(1)(a)(3).
• Up to 100% penalty if late/incomplete filing was intentional and intended to defeat or evade tax.

Underpayment of estimated tax (Schedule U):

• Interest at 12% per annum (1% per month) applies to underpayments of required estimated tax, unless at least 90% of current-year tax or 100% of prior-year tax (for full-year residents) was paid through withholding/estimated payments. Safe-harbor provisions and waivers (e.g., for disaster relief, age, disability, military service abroad) are available; supporting documentation may be required for waiver requests.

Voluntary disclosure relief:

• Taxpayers who qualify under Wisconsin’s Voluntary Disclosure Program may have penalties abated (other than the $50 late filing fee), and interest reduced to the statutory 12% rate. Eligibility generally requires no previous DOR contact for the periods at issue and disclosure before filing past-due returns.

Abatement/waiver for reasonable cause:

• The DOR may waive some penalties for "reasonable cause" as defined under Wis. Admin. Code Tax 2.87. Relief is not automatic and must be documented for DOR’s review.

Authority:

• Filing dates and extension mechanics: Wis. Stat. § 71.03(7); Wisconsin DOR Form 1 Instructions, Extension section
• Late-filing and payment penalties: Wisconsin DOR FAQ – Individual Income Tax Deadlines and Late-Filed Returns
• Negligence and fraud penalties: Wis. Stat. § 71.83
• Underpayment interest and waiver: Wisconsin DOR Make a Payment / Estimated Tax FAQ; Wis. Stat. § 71.84
• Voluntary disclosure program: Wisconsin DOR – Voluntary Disclosure
• Reasonable-cause abatement: Wis. Admin. Code Tax 2.87

Not yet human confirmed. This section reflects statutory language and DOR official guidance as of July 2026.

Wisconsin requires individuals, estates, and trusts to make quarterly estimated income tax payments if they expect their Wisconsin net tax due (after withholding and credits) to be $500 or more for the year. This obligation applies to full-year residents, part-year residents, and nonresidents with Wisconsin-source income that is not subject to sufficient withholding. Joint filers must combine their expected liability to determine if the $500 threshold is met.

Quarterly Payment Deadlines: Estimated payments are due in four equal installments on:

• April 15
• June 15
• September 15
• January 15 of the following year

If the due date falls on a weekend or legal holiday, payment is due the next business day.

Safe Harbor Provisions to Avoid Underpayment Interest: No underpayment interest is owed if either of the following conditions is met:

• At least 90% of the current year’s Wisconsin tax liability is paid through withholding and estimated payments, OR
• At least 100% of the prior year’s Wisconsin tax is paid (if the 2025 return was a 12-month period, filed as a full-year Wisconsin resident, and there was tax liability). The 100% prior-year safe harbor does not apply to part-year residents, nonresidents, or those with less than a full-year prior return.

If there was no Wisconsin tax liability for the prior year, you were a full-year Wisconsin resident, and the return covered 12 months, no estimated payments are required for the current year.

Special Rule for Estates and Trusts: Estates and trusts with $20,000 or more of taxable income must use the 90% current-year test; the 100% prior-year safe harbor is not available, regardless of residency status or length of the prior return.

Farmers and Fishers Exception: Taxpayers with at least two-thirds of gross income from farming or fishing may either pay the entire required estimated tax by January 15 of the following year, or file and pay their entire Wisconsin return by March 1, in which case no estimated payments are required.

Annualized Income Method: Taxpayers who receive income unevenly during the year may use the annualized income installment method (Schedule U) to calculate payments based on the timing of income received.

Source: Wisconsin DOR – Estimated Tax Payment FAQ

Not yet human confirmed. Every point above is directly sourced from the official Wisconsin DOR Estimated Tax FAQ and instructions as of June 2026.

Wisconsin provides a personal exemption deduction for purposes of personal income tax, with the structure set by statute and the dollar amounts confirmed annually in Department of Revenue (DOR) guidance.

Exemption Amounts for 2025: For tax year 2025, the personal exemption is $700 for each taxpayer, $700 for a spouse (if married filing jointly), and $700 for each dependent. In addition, an extra $250 exemption is allowed for the taxpayer and spouse if age 65 or older. These amounts are stated in the 2025 Wisconsin Form 1 Instructions, the most recent official publication as of June 2026. Statutory language authorizes the Department to set or publish the specific dollar amount for each year. The current exemption values have been stable in recent years, but official confirmation for 2026 is not available in DOR publications as of this writing.

Proration for Nonresidents and Part-Year Residents: Nonresidents and part-year residents claim a prorated personal exemption based on the ratio of their Wisconsin adjusted gross income (WAGI) to federal adjusted gross income (FAGI), as directed by Wis. Stat. § 71.05(23)(e). This ensures the exemption applies proportionally to Wisconsin-source income.

No Income Phaseout or Limitation: The personal exemption is not subject to any income-based phaseout or limitation. All eligible filers may claim the exemption amount (or prorated exemption, for nonresidents/part-year residents) regardless of taxable income.

Authority:

• The existence and structure of the exemption, age-based addition, and proration are set out in Wis. Stat. § 71.05(23), which cross-references the Department's administrative guidance for current-year dollar figures.
• The exemption amounts cited above reflect the 2025 Form 1 Instructions, p. 17. For 2026, practitioners should check for the latest official Form 1 Instructions when available.

Source: Wis. Stat. § 71.05(23) Source: Wisconsin DOR 2025 Form 1 Instructions, Personal Exemptions, p. 17

Not yet human confirmed. Exemption amounts are as stated for tax year 2025; 2026 amounts unconfirmed as of June 2026.

Wisconsin personal income tax applies four marginal tax rates and corresponding brackets to taxpayers who file as married individuals filing separately. For tax years beginning after December 31, 2024 (i.e., tax year 2025 and beyond), these taxpayers will use brackets and rates set out by statute and confirmed in official Department of Revenue schedules for each year.

Tax Rates and Income Brackets for 2025 (returns filed in 2026):

• 3.50% on taxable income up to $9,790
• 4.40% on taxable income over $9,790 up to $33,650
• 5.30% on taxable income over $33,650 up to $215,530
• 7.65% on taxable income over $215,530

These figures are set by statute as exactly one-half the amounts for married filing jointly, but official DOR tax schedules establish the indexed dollar values each year. The marginal rates themselves (3.50%, 4.40%, 5.30%, 7.65%) have not changed in recent cycles, but bracket thresholds are indexed for inflation and published annually in the Form 1-ES Instructions and DOR online tables.

Bracket Adjustment and Authority Wis. Stat. § 71.06(2)(k) provides the statutory framework for bracket structure, explicitly stating amounts for married filing separately are half those of the married filing jointly status. The Department of Revenue annually updates the bracket ranges for inflation (using a statutory formula), and practitioners should always rely on the latest DOR-published schedule to confirm current year thresholds.

Source: Wisconsin DOR, 2025 Form 1-ES Instructions, “2025 Tax Rate Schedules”, p. 3 Source: Wis. Stat. § 71.06(2)(k)

Not yet human confirmed; all data are from official DOR 2025 schedules and controlling statute as of June 2026.

Wisconsin part-year residents are taxed according to their residency status throughout the year. During the period the individual is a resident of Wisconsin, the state taxes all income from every source, regardless of whether earned within or outside Wisconsin. During the nonresident portion of the tax year, Wisconsin taxes only income derived from Wisconsin sources. This allocation framework is confirmed by both statutory language and official DOR guidance.

Resident Period (Domiciled in Wisconsin):

• All income received or accrued during the portion of the year the taxpayer is a Wisconsin resident is subject to Wisconsin income tax. This includes wages, self-employment income, investment income, capital gains, and other categories, without regard to the source or situs.

Nonresident Period (Not Domiciled in Wisconsin):

• For periods when the taxpayer is not a Wisconsin resident, only Wisconsin-source income is taxed. "Wisconsin-source income" is determined by the statutory sourcing rules (Wis. Stat. § 71.04), which generally include income from services performed in Wisconsin, business income from activities in Wisconsin, rental income from Wisconsin property, and certain capital gains or income from tangible/intangible property situated in Wisconsin (see guide section 'nonresident-source-income-rules').

Transition Between Periods:

• Taxpayers who move into or out of Wisconsin in a taxable year must allocate income according to their resident and nonresident status. The period of residency is defined based on when the taxpayer is domiciled in Wisconsin (see section 'residency-definition-domicile').
• Both resident and nonresident income are reported on Wisconsin Form 1NPR, and the Department of Revenue provides detailed instructions and worksheets for part-year filers to ensure proper allocation of income and deductions.

Authority:

• The controlling statute, Wis. Stat. § 71.04(2), states: "If an individual changes residence by either becoming a resident or a nonresident during any taxable year, ... the taxes imposed ... apply to the income received or accrued during the period a resident and apply only to income specified in this section received or accrued during the period a nonresident."
• Official DOR guidance echoes this rule: "Part-year residents – During the time you are a Wisconsin resident, Wisconsin taxes your income from all sources. During the time you are not a resident of Wisconsin, Wisconsin only taxes your income from Wisconsin sources." (Wisconsin DOR Nonresidents and Part-Year Residents FAQ)

Source: Wis. Stat. § 71.04(2) Source: Wisconsin DOR Nonresidents and Part-Year Residents FAQ

Not yet human confirmed. The section synthesizes the allocation rule as stated in statute and official DOR guidance current as of June 2026.

Wisconsin's personal income tax uses a unique structure for both the standard deduction and personal exemption. These amounts are not static: they vary by filing status, are indexed annually for inflation, and the standard deduction phases out as income increases, while the personal exemption does not phase out.

Standard Deduction (Tax Year 2026)

• The maximum standard deduction for tax year 2026 (returns filed in 2027) is:
• Single/Head of Household: Up to $13,870
• Married Filing Jointly: Up to $25,720
• Married Filing Separately: Up to $12,860
• The deduction begins to phase out once Wisconsin income exceeds:
• Single: $16,620
• Married Filing Jointly: $23,830
• Married Filing Separately: $11,910
• The deduction amount decreases for every dollar over the threshold and phases out entirely at upper income thresholds (for single, this cutoff is $122,910; for married filing jointly, $180,030; and for married filing separately, $90,010).

The phaseout is governed by formulas in Wis. Stat. § 71.05(22). The Wisconsin Department of Revenue provides a Standard Deduction Table in the Form 1 Instructions every year, reflecting indexed amounts and phaseout bands. Practitioners should always consult the latest DOR Form 1 Instructions for the precise table for the current year.

Personal Exemption (Tax Year 2026)

• For 2026, the personal exemption remains $700 for each taxpayer, $700 for a spouse (if MFJ), and $700 for each dependent. An additional $250 exemption applies to the taxpayer (and spouse, if filing jointly) who are age 65 or older.
• Personal exemptions do NOT phase out at higher incomes. All filers are eligible for the full (or prorated for part-year/nonresidents) exemption regardless of income level.
• Nonresidents and part-year residents must prorate their exemption according to the ratio of Wisconsin adjusted gross income to federal adjusted gross income (as provided in Wis. Stat. § 71.05(23)(e)).

Authority and Official Confirmation

• The structure, indexation, and eligibility for both amounts are codified in Wis. Stat. § 71.05(22) (standard deduction) and § 71.05(23) (personal exemption).
• Exact annual amounts and phaseout thresholds are confirmed in DOR publications and annual Form 1 Instructions. The 2026 values above are sourced from the Wisconsin DOR summary report and statutory cross-references.

Source: Wis. Stat. § 71.05(22), (23) Source: Wisconsin DOR, Summary of Tax Exemption Devices, 2025-2026, Table 1, p. 13

Not yet human confirmed. Every value above is based on official DOR publications or current statute as of June 2026. Practitioners should check the current year’s DOR Form 1 Instructions for any updated phaseout tables or thresholds.

Wisconsin personal income tax returns (Form 1 for residents, Form 1NPR for nonresidents and part-year residents) are due on or before April 15th following the close of the calendar tax year, conforming with the federal individual income tax due date. If April 15 falls on a Saturday, Sunday, or legal holiday, the deadline is extended to the next business day. (For example, for tax year 2025, returns are due April 15, 2026.)

Automatic Extension to File—Federal Extension Recognized: Wisconsin grants an automatic extension of time to file if the taxpayer has obtained a valid federal filing extension from the Internal Revenue Service (IRS), usually by filing IRS Form 4868. No separate Wisconsin extension application is required. The extension of time to file does not extend the time to pay any tax due; all personal income tax owed must still be paid by the original due date (April 15) to avoid interest or penalties.

How to Claim an Extension:

• Attach a copy of the federal extension (Form 4868) or evidence of filing it to your Wisconsin tax return when filed.
• If filing electronically, retain proof of the federal extension for your records, as the DOR may request it.
• If filing by paper, include a copy of the federal extension with your mailed return.

Interest and Penalties for Late Payment:

• An extension grants more time to file, but does NOT delay the obligation to pay.
• Interest accrues on any unpaid tax at 1% per month from the original due date.
• If tax is not paid by April 15 (or the next business day, if extended), a late payment penalty may also apply.

Relevant Legal Authority:

• Wis. Stat. § 71.03(7) provides that a federal filing extension automatically extends the time to file the Wisconsin return to the same date, provided that a copy of the federal extension application is submitted with the state return.
• Official Department of Revenue guidance in the Form 1 Instructions confirms there is no separate state application for personal income tax extensions.

Source: Wis. Stat. § 71.03(7) Source: Wisconsin DOR 2025 Form 1 Instructions, Extension of Time to File, p. 6

Direct answer Wisconsin uses static conformity to the Internal Revenue Code—as of December 31, 2022 for tax years beginning after that date (per 2023 Wis. Act 36)—and thus does not conform to major federal income tax changes enacted after that date, including bonus depreciation (IRC § 168(k)), the IRC § 199A Qualified Business Income (QBI) deduction, and the ARPA student loan forgiveness exclusion. These items are disallowed for Wisconsin purposes unless specifically adopted by state law.

Why

• Conformity basis: Wisconsin’s IRC reference date was advanced under 2023 Wis. Act 36 to December 31, 2022; any federal changes enacted after that date are excluded from Wisconsin income unless the Legislature enacts them separately.
• Bonus depreciation decoupling: The Wisconsin Department of Revenue confirms that bonus depreciation (§ 168(k)) is not allowed for Wisconsin income and must be added back on Schedule I.
• QBI deduction (§ 199A): Wisconsin does not allow the Qualified Business Income deduction (enacted under the 2017 Tax Cuts and Jobs Act) because it was never separately adopted for Wisconsin purposes and is not included as of the conformity date.
• Student loan forgiveness exclusion: Wisconsin does not adopt the American Rescue Plan Act (ARPA) exclusion (IRC § 108(f)(5)) for student loan forgiveness under income-driven repayment plans. Consequently, such forgiven amounts remain taxable in Wisconsin, even if excluded federally.

Recent and upcoming updates

• 2023 Wis. Act 36, effective retroactively for tax years beginning on or after January 1, 2022, is the most recent IRC conformity change (moving the reference date to December 31, 2022), and it explicitly excludes certain ARPA provisions—including the student loan exclusion—from Wisconsin law.
• As of June 2026, no further legislation has updated conformity or separately enacted the § 199A deduction or post-2022 federal depreciation provisions.

Source: 2023 Wis. Act 36 (see Section 30, IRC conformity date) Source: Wisconsin DOR FAQ: Federal and Wisconsin Bonus Depreciation Differences Source: Wisconsin DOR FAQ: Student Loan Forgiveness Inclusion

Not yet human confirmed. Section highlights major conformity exceptions but does not exhaustively enumerate all Wisconsin deviations from federal law; additional divergence areas (e.g., NOL carrybacks, IRC § 163(j) interest limitations) may warrant further guidance in future updates.

Wisconsin offers two primary refundable credits under its personal income tax: (1) the Wisconsin Earned Income Credit (EIC) and (2) the Wisconsin Homestead Credit. For the 2026 tax year, there are also developments and confirmations regarding family and child care-related credits: a new employer-provided child care tax credit and the continued availability of the additional child and dependent care credit.

1. Wisconsin Earned Income Credit (EIC)

The Wisconsin EIC is a refundable credit available to working individuals and families with at least one qualifying child. The Wisconsin EIC is calculated as a percentage of the claimant’s federal EIC (as recomputed for Wisconsin law using Schedule I). For 2025 and 2026, the credit rates are:

• One qualifying child: 4% of the federal EIC
• Two qualifying children: 11% of the federal EIC
• Three or more qualifying children: 34% of the federal EIC

Eligibility requirements generally mirror the federal EIC, but the credit is not available to individuals who file as married filing separately (unless treated as unmarried under IRC §7703(b)). Taxpayers must be full-year Wisconsin residents and have at least one qualifying child; filers without a qualifying child do not receive this credit. Wisconsin Schedule I adjustments—such as differences in the treatment of certain items like depreciation, capital gains/losses, or retirement income—can affect the final credit amount. The credit phases out at income levels set by federal EIC phaseouts and published by the Wisconsin DOR, subject to annual revision.

Source: Wisconsin DOR EIC FAQ

2. Wisconsin Homestead Credit

The Homestead Credit is a refundable income tax credit for homeowners and renters designed to reduce the impact of property taxes. Eligibility for 2025 and 2026 requires:

• Full-year Wisconsin residency
• Age 18 or older at the end of the year
• Household income below $24,680
• A positive earned income amount (or be age 62 or disabled)
• Homestead subject to Wisconsin property tax, or share of rent constituting property taxes
• Not being claimed as a dependent (waived if age 62 or older)

"Household income" includes federal adjusted gross income plus many nontaxable items (exempt interest, Social Security, etc.) and must be carefully calculated per DOR instructions. Recipients of public assistance (W-2, county relief) must reduce their allowable property taxes or rent by 1/12 for each month assistance is received. Only one claim is allowed per household, and the credit cannot be claimed simultaneously with the Veterans and Surviving Spouses Property Tax Credit or the Farmland Preservation Credit. The claim is filed on Schedule H or H-EZ, and rent certificates/property tax bills must be attached. The deadline for filing a 2025 or 2026 claim is generally April 15 following the tax year, with possible late filing.

Source: Wisconsin DOR Homestead Credit FAQ

3. 2026 Child and Dependent Care and Family Credits Update

• For 2026, Wisconsin has introduced a new nonrefundable employer-provided child care tax credit, effective for tax years beginning after December 31, 2025. This credit equals the federal employer-provided child care credit (IRC § 45F), applies to employers (including self-employed individuals), and is not directly claimable by families—see Wisconsin DOR Wisconsin Tax Bulletin 233 (April 2026), pp. 3–5.
• The Wisconsin additional child and dependent care credit—calculated as a percentage of the federal child and dependent care credit (IRC § 21)—remains available for 2026, per Wis. Stat. § 71.07(9g)(b)2 and current DOR guidance (see Practitioner Q&A Fall 2025, p. 2). There is no statutory sunset affecting tax year 2026. This credit is for individual filers with qualifying dependent care expenses (claimed on Schedule DC).
• No other new, temporary, or sunset/expired targeted family/child tax credits have been enacted for the 2026 tax year as of July 2026. The Earned Income Credit and Homestead Credit thus remain the key refundable credits for taxpayers with child or family-related expenses.

Caution / review status: Not yet human confirmed. All facts supported by current Wisconsin DOR bulletins/statutes as of July 2026. Practitioners should check the latest Wisconsin DOR bulletins and 2026 Form 1 Instructions for any late-session changes or emergency provisions affecting credits.

Source: Wisconsin DOR, EIC FAQ Source: Wisconsin DOR, Homestead Credit eligibility and instructions Source: Wisconsin DOR Wisconsin Tax Bulletin 233 (April 2026), pp. 3–5 Source: Wis. Stat. § 71.07(9g)(b)2 Source: Wisconsin DOR Practitioner Q&A (Fall 2025), p. 2