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Wisconsin Tax Burden Hits Record Low Despite Rising Costs
23 Jan
Summary
- Wisconsin's tax burden is at a record low of 9.6% of income.
- Local tax revenues increased by 6.4%, the highest since 2005.
- Property taxes saw their largest growth since 2008, up 4.6%.
Wisconsin residents are experiencing a record-low tax burden, paying 9.6% of their incomes in state and local taxes during the 2025 fiscal year. This figure represents a significant decline from the up to 14% paid in the 1980s.
While overall tax burden decreased, local tax revenues rose by 6.4%, marking the most substantial increase since 2005. This surge was primarily fueled by property and sales taxes. Notably, Milwaukee's new sales tax generated $169 million.
Property taxes, after accounting for credits, grew by 4.6% to nearly $12 billion, the highest rate since 2008. This increase is attributed to various factors, including referenda exceeding levy limits and a lack of increased general school aid in the state budget.
Individual income taxes, the state's largest revenue source, jumped 7.5%, likely due to growing wages, employment, and asset appreciation, despite some bracket cuts. Fees for driver's licenses and wheel taxes also saw notable increases.
Rising inflation contributed to higher sales tax revenue, reaching an all-time high of 22.6% of government funding sources. However, this reliance on sales taxes may disproportionately affect lower-income residents.
