Ranking and TaxScore #42

Important Tax Facts: 

-The State of Wisconsin has both Corporate income tax and personal income tax rates with maximum rates of 7.90% and 7.65%, respectively. Wisconsin also has a Surcharge Tax on Corporations, read more below.

7.90%

State Income Tax

State
Income
Tax

7.65%*

Cost of Setting Up A Business

state
business
tax

HIGH

Property
Taxes

5.46%

STATE & lOCAL
Sales Tax

State Income Taxes in Wisconsin

Similar to the majority of other states, the state of Wisconsin does have an individual income tax. Like most states with income tax, it is calculated on a marginal scale (four tax brackets) whose range is from 4.00% to 7.65%. The highest bracket of 7.65% starts for income greater than $263,480.

State Business Taxes in Wisconsin

The state of Wisconsin has a flat Corporate Tax rate of 7.90%. Their corporate tax is often referred to as the Wisconsin Franchise Tax which is assessed against Net Income of C Corporations and Interest Income of S Corporations.  Other flow-thru entities, such as LLCs and LLPs are not subject to the Wisconsin Franchise Tax.

Additionally, S Corporations and Corporations are also subject to another tax called the *Economic Development Surcharge Tax. The Surcharge Tax is a Gross Receipts Tax on income greater than $4 Million.

Quick overview of Economic Development Surcharge Tax

State and Local Sales Taxes in Wisconsin

Like most states, Wisconsin has both a Local and State sales tax. The State Sales tax rate 5.00%, and the average local sales tax rate is 0.46% (putting the average state sales tax at 5.46%).

Property Taxes in Wisconsin

The average property tax rate for residential property in the state of Wisconsin is 1.73%, making it one of the most expensive states in the union as far as Property Tax as a Percent of a taxpayer’s primary residence.

Unemployment taxes in Wisconsin

Unemployment taxes usually consist of three factors. They are: the wage base, the range of UI rates, number of schedules. Below is an outline of the three:

  • Wage Base – Wisconsin has a wage base of $14,000
  • UI Rates – range from 0.15% to 12.00% (very high upper bound rate).
  • Schedules – Wisconsin has a single rate schedule regarding UI

Wisconsin Business Entities - LLCs

Wisconsin is one of the less expensive states in regards to opening an LLC. Here are some important facts:

  • Wisconsin’s annual LLC fee is $25 a year
  • When you register with the state, you pay a one time fee of $130
  • Secretary of State of Wisconsin website – click here
  • If you would like help setting up your LLC, we recommend using IncFile.com. They are simple and easy to use.

State #41

State #43