Overview
The Wisconsin state income tax is a levy imposed on the earnings of residents, part-year residents, and nonresidents who have taxable income from sources within Wisconsin. As of 2023, the state income tax rate is 5.90%, and the state allows several deductions, credits, and exemptions that can reduce the amount of tax you owe. It’s important to understand the state’s income tax regulations so you can accurately file your taxes and claim all of the deductions available to you.
Income Tax Brackets
Wisconsin’s income tax rate is progressive, meaning that the rate increases as your taxable income increases. The rate is applied to each bracket of income, and the brackets are adjusted annually for inflation. As of 2023, the income tax brackets are as follows:
- 10.9% on taxable incomes between $0 and $11,150
- 12.4% on taxable incomes between $11,151 and $22,300
- 6.5% on taxable incomes between $22,301 and $252,150
- 7.65% on taxable incomes between $252,151 and $322,300
- 7.8% on taxable incomes between $322,301 and $537,000
- 7.9% on taxable incomes over $537,000
Taxable Income
The amount of your taxable income determines the amount of your tax liability. Generally, taxable income includes all sources of income, including wages, salaries, tips, investment earnings, and business income. However, if you’re a resident or part-year resident of Wisconsin, you may be able to exclude some income from your taxable income. Examples of income that may be excluded include military pay, Social Security benefits, and some types of retirement income.
Deductions and Exemptions
Wisconsin allows several deductions, credits, and exemptions that can reduce the amount of taxable income and, in turn, the amount of tax you owe. For example, you may be able to deduct certain expenses, such as tuition and fees, student loan interest, and medical expenses. You may also be able to deduct certain types of retirement income and Social Security benefits. Additionally, Wisconsin allows a personal exemption, which is an amount of income that is not taxable. For 2023, the personal exemption is $3,650.
Filing Requirements
If you’re a resident or part-year resident of Wisconsin and have taxable income, you may be required to file a Wisconsin income tax return. Generally, you must file if your total income exceeds the amount of your personal exemption. If you’re a nonresident, you must file if you have taxable income from sources within Wisconsin. Additionally, you must file if you’re a part-year resident of Wisconsin and have income from sources outside Wisconsin that is not subject to the income tax in that state.
Filing Deadlines
Wisconsin’s income tax filing deadline is April 15 of each year. If you need more time to file, you can request an extension by filing Form 1-ES. However, you must still pay any taxes you owe by April 15. If you owe taxes and do not file or pay by the due date, you may be subject to interest and penalties.
Electronic Filing
The Wisconsin Department of Revenue encourages taxpayers to file their returns electronically. In addition to being more convenient, electronic filing is also more secure and can result in faster refunds. To file electronically, you must use a software program that has been certified by the Department of Revenue or you can use the Department’s online filing system. If you file electronically, you must submit your return and payment by the due date.
Tax Refunds
If you are entitled to a refund, you should receive it within four to six weeks if you file electronically. If you file a paper return, you should receive your refund within eight to 10 weeks. If it has been more than 10 weeks and you have not received your refund, you should contact the Wisconsin Department of Revenue.
Conclusion
Wisconsin’s income tax regulations can be complicated, but with a little research, you can understand the rules and file your taxes accurately. Knowing the tax rate, the filing requirements, and the deductions and exemptions available can help you keep more of your hard-earned money.
