What is the current tax burden in Wisconsin?

Wisconsin's tax burden is at a record low of 9.6% of residents' incomes as of the 2025 fiscal year.

Why did local taxes increase in Wisconsin?

Local tax revenues rose due to increases in property and sales taxes, including a new sales tax in Milwaukee.

Are property taxes increasing in Wisconsin?

Yes, property taxes grew by 4.6% in 2025, the highest rate since 2008, despite efforts to limit their growth.

Home / Business and Economy / Wisconsin Tax Burden Hits Record Low Despite Rising Costs

Wisconsin Tax Burden Hits Record Low Despite Rising Costs

23 Jan

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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 Tax Burden Hits Record Low Despite Rising Costs

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.