January 13, 2015

Wisconsin

State & Local Taxes in 2015

 

Wisconsin Tax Code Features

Progressive Features

• Graduated personal income tax structure

• Provides a refundable property tax “circuit breaker” credit to low-income taxpayers via the income tax

• Sales tax base excludes groceries

• Requires the use of combined reporting for the corporate income tax

Regressive Features

• Provides an income tax exclusion equal to 30 percent of capital gains income

• Fails to provide refundable child tax credits

• Comparatively high cigarette tax rate

Tax Changes Enacted in 2013 & 2014

• Reduced personal income tax rates

• Across the board property tax reductions

ITEP Tax Inequality Index

According to ITEP’s Tax Inequality Index, Wisconsin has the 37th most unfair state and local tax system in the country. States with regressive tax structures have negative tax inequality indexes, meaning that incomes are less equal in those states after state and local taxes than before (See Ap­pendix B for state-by-state rankings and more details).

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