*Updated April 2018*
Each state has slightly different tax laws for individuals, so here we will cover some of the basics of Wisconsin state tax law to give you a better understanding of your tax return, and things you may be missing out on, like extra deductions! Stay tuned into our blog channel to learn about tax laws in other states.
Income Tax
Individual tax rates in WI range from 4-7.65% based on marital status and income.
For example, for the income level for people filing as single or head of household:
| Income Over | But Not Over | 2017 Tax is | Of the Amount Over |
| $0 | $11,230 | 4.00% | $0 |
| $11,120 | $22,470 | $449.20 + 5.84% | $11,230 |
| $22,470 | $247,350 | $1,105.62 + 6.27% | $22,470 |
| $247,350 | $15,205.59 + 7.65% | $247,350 |
You can find more info at www.revenue.wi.gov/faqs/pcs/taxrates
“What is my Wisconsin income tax return status?”
Tax Deductions
Wisconsin allows deductions for:
Donations: these must be itemized on your tax return to receive credit. They can include gifts to religious or charitable organizations, scientific, literary, and educational organizations, groups for preventing cruelty to children or animals, or for amateur sports competitions.
- Cash contributions up to 50% of your adjusted gross income, and any excess can be carried forward up to 5 years.
- Property donations: used clothing, furniture, or electronics at fair market value, NOT original cost (eg. Good Will and Salvation Army have forms you may fill out when you drop off donations with estimated values)
- If you donate property you’ve owned for over a year that has appreciated in value and you anticipate having to pay capital gains tax on it (eg. stock, mutual fund), you can earn a deduction for its fair market value, and ultimately never pay the capital gains tax on the appreciation. Often limited to 30% of your adjusted gross income.
Mortgage Interest
Wisconsin allows the deduction of any interest paid on your home’s mortgage
You CANNOT Deduct:
- Gifts to individuals
- Political contributions
- Gifts to labor unions
- Donations to homeowner’s associations
- Gifts used for tuition
Property Tax
Property tax rates vary by county and can be calculated using this calculator.
Examples:
- Milwaukee County 2.56%
- Waukesha County 1.668%
- Dane County 2.013%
The average property tax in Milwaukee County is 2.49%, which is over twice the national average.
Not Part of Your Tax Return (but interesting to know)
Sales
WI sales tax is 5% and is added to the price of retail sales, licenses, leases, and some rentals.
Gas
There is a federal tax of 18.4 cents/gallon of gasoline, 24.4 cents/gallon of diesel, and a Wisconsin state tax on gasoline and diesel of 32.9 cents/gallon.
Download our FREE Tax Organizer, and if you need tax help, would like an accountant to check over your forms, or want to know when you’ll receive your WI tax refund, please contact us and we’d be happy to assist!
