For individuals and businesses alike, understanding Wisconsin income tax brackets is essential for accurate tax planning and compliance. Wisconsin uses a progressive income tax system, meaning that different portions of your taxable income are taxed at varying rates. The state tax brackets are adjusted periodically to account for inflation, and for the 2024 tax year, there are four primary income tax brackets. These brackets apply to both single and married filers, with rates ranging from 3.50% to 7.65%, depending on your income level. Whether you’re an employee having taxes withheld or a business owner planning estimated tax payments, knowing the specific tax brackets can help you better manage your tax obligations.
Wisconsin Tax Brackets
Wisconsin’s individual income tax rates are applied across four brackets based on filing status and taxable income. Below is a breakdown of the 2024 tax brackets for both single and married filing jointly taxpayers.
| Single Filers | Tax Rate |
|---|---|
| $0 – $13,810 | 3.50% |
| $13,810 – $27,630 | 4.40% |
| $27,630 – $304,170 | 5.30% |
| Over $304,170 | 7.65% |
| Married Filing Jointly | Tax Rate |
|---|---|
| $0 – $18,420 | 3.50% |
| $18,420 – $36,840 | 4.40% |
| $36,840 – $405,550 | 5.30% |
| Over $405,550 | 7.65% |
For married taxpayers filing separately, the income tax rates apply at half the income thresholds of joint filers.
How Wisconsin’s Progressive Tax System Works
Wisconsin’s progressive tax system means that different portions of your income are taxed at progressively higher rates. For example, if you’re a single filer earning $50,000, the first $13,810 of your income would be taxed at 3.50%, the income between $13,810 and $27,630 would be taxed at 4.40%, and the remaining amount would fall into the 5.30% bracket.
This structure ensures that individuals with higher income pay a larger percentage in taxes, while lower-income earners benefit from reduced rates on their initial earnings.
Nonresidents or part-year residents must prorate their Wisconsin income based on the ratio of their Wisconsin income to their total income. This ensures that only income earned in Wisconsin is subject to state tax.