Wisconsin Income Tax Calculator
Wisconsin has a standard deduction unlike any other state — it phases out as your income rises. Add a new $24,000 retirement exclusion for Badger State residents 67 and older, four progressive brackets, and no local income tax anywhere. This take-home pay calculator covers all of it.
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How Wisconsin Income Tax Actually Works
Wisconsin’s four progressive brackets — 3.5%, 4.4%, 5.3%, and a 7.65% top rate — have been gradually refined over recent legislative sessions, most recently through 2025 Wisconsin Act 15, which expanded the income range subject to the 4.4% bracket and added a new 9.8% rate on income above $1 million that only affects the very highest earners. For most Wisconsin residents, the relevant brackets are the 3.5% entry rate on the first $14,679 of taxable income, a wide middle band at 4.4% and 5.3%, and the 7.65% rate that begins at $323,290 (single) — a threshold that, while lower than many comparable states, still captures only the top tier of earners.
The standard deduction is where Wisconsin genuinely breaks from the crowd. Almost every state offers a fixed standard deduction — you earn $50,000 or $500,000 and your deduction is the same. Wisconsin’s is different: it’s a Sliding Scale Standard Deduction (SSSD) that starts at a maximum amount and then decreases as income rises, eventually phasing out to zero at higher income levels. The practical effect is that lower earners get a meaningful deduction while the benefit gradually disappears for those with higher incomes. On top of the standard deduction, Wisconsin allows $700 in personal exemptions per person — yourself, spouse if married filing jointly, and each qualifying dependent — with an additional $250 exemption for taxpayers who are 65 or older or legally blind.
The biggest Wisconsin tax story for 2025: 2025 Wisconsin Act 15 created a brand-new retirement income exclusion for taxpayers who are 67 or older by December 31, 2025. For the first time, Wisconsin residents in that age group can subtract up to $24,000 of qualifying retirement income — 401(k), 403(b), IRA, and pension distributions — from Wisconsin taxable income, or up to $48,000 for married couples filing jointly where both spouses qualify. This is an enormous change from the prior cap of only $5,000 and makes Wisconsin substantially more attractive for retirees. The trade-off: if you claim this exclusion, you cannot claim any Wisconsin income tax credits in the same year, including the Homestead Credit, School Property Tax Credit, or Earned Income Credit, so the benefit calculation depends on whether your credits or the exclusion is worth more.
Frequently Asked Questions
Wisconsin uses four progressive brackets for 2025: 3.5% on the first $14,679 of taxable income, 4.4% from $14,680 to $50,479, 5.3% from $50,480 to $323,289, and 7.65% on income above $323,290 for single filers. Married filing jointly thresholds are higher. A new 9.8% bracket for income above $1,000,000 was added by 2025 Wisconsin Act 15.
Wisconsin’s Sliding Scale Standard Deduction (SSSD) is not a fixed amount — it starts at a maximum (approximately $13,930 for single filers, $25,890 for married filing jointly) and phases down progressively as income rises, reaching $0 at higher income levels. This is one of the few state deductions in the country that shrinks as you earn more.
Starting with the 2025 tax year under 2025 Wisconsin Act 15, taxpayers who are 67 or older by December 31, 2025 may subtract up to $24,000 of qualifying retirement income (401k, 403b, IRA distributions, and pensions). Married filing jointly taxpayers where both spouses are 67+ can subtract up to $48,000. Important: claiming this exclusion means you cannot also claim any Wisconsin income tax credits in the same tax year.
No. Wisconsin fully exempts Social Security benefits from state income tax regardless of income level or age.
Yes. Wisconsin allows a 30% exclusion on qualifying long-term capital gains, effectively taxing them at a lower rate than ordinary income. However, under 2025 Wisconsin Act 15, the 30% exclusion is limited for taxpayers with income above $400,000.
No. Wisconsin does not allow any city, county, or municipality to levy a local income tax. The state brackets are the entire income-tax picture for Wisconsin residents.
Methodology: Calculations use Wisconsin’s 2025 four-bracket income tax schedule (3.5%–7.65% per Wisconsin DOR), an approximation of the Sliding Scale Standard Deduction (SSSD) that phases out at higher incomes, the $700 personal exemption per person, the new 2025 Act 15 retirement income exclusion ($24,000/$48,000 for age 67+), the 2025 IRS federal tax brackets and Child Tax Credit rules, and 2025 Social Security (6.2% to the $176,100 wage base) and Medicare (1.45% + 0.9% additional Medicare tax) rates, per IRS.gov guidance. The SSSD phase-out is approximated; verify your exact deduction with Form 1 instructions from Wisconsin DOR. This tool provides estimates for planning purposes only and is not tax, legal, or financial advice. Last reviewed for accuracy: June 2026.