Overview of Wisconsin Taxes
Wisconsin workers are subject to a progressive state income tax system with four tax brackets. The tax rates, which range from 4% to 7.65%, are dependent on income level and filing status.
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Wisconsin Paycheck Calculator
 Photo credit: ©iStock.com/csfotoimages | Wisconsin Paycheck Quick Facts
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How Your Wisconsin Paycheck Works
When you receive a paycheck in Wisconsin, you will notice that money has been subtracted from it for FICA taxes, as well as federal and state income taxes.
How much you pay in federal income tax varies from person to person. Your Wisconsin employer will make sure that the income withheld from your paycheck is consistent with the information on the W-4 form you submitted. This information addresses your marital status, the number of allowances you're claiming and any additional dollar amounts you want withheld.
Keep in mind that President Trump's new tax plan has caused a slight change in withholding calculations. You should have seen these changes in early 2018. Regardless of whether or not you saw changes, you may want to double-check that all of the information on your W-4 is still accurate.
The Federal Insurance Contributions Act (FICA) requires that Social Security and Medicare taxes are withheld. These taxes are deducted from your paycheck in fixed percentages. The federal government receives 12.4% of an employee’s income each pay period for Social Security: 6.2% comes from the employee’s paycheck itself and the employer matches that to provide the other 6.2%. Medicare tax follows a similar process. Employees pay 1.45% from their paychecks and employers are responsible for the remaining 1.45%. If you earn wages in excess of $200,000, you will have to pay an additional 0.9% Medicare surtax, which employers do not match.
If you are self-employed, you must pay the full percentages of FICA taxes, but a tax deduction lets you recoup some of the “employer” portion..
Taxes are not the only factors that affect your paycheck. If you make contributions to a health savings account (HSA) or flexible spending account (FSA), that will reduce your paycheck further. Similarly, if you get health or life insurance through an employer-sponsored plan, any premiums you pay will be deducted from your wages.
Wisconsin Median Household Income
| Year | Median Household Income |
| 2017 | $56,759 |
| 2016 | $54,610 |
| 2015 | $53,357 |
| 2014 | $52,622 |
| 2013 | $51,467 |
| 2012 | $51,059 |
| 2011 | $50,395 |
| 2010 | $49,001 |
| 2009 | $49,993 |
| 2008 | $52,094 |
Previously, Wisconsin had some of the highest state income and property taxes nationwide. Beginning in 2013 and 2014, the state made significant tax cuts that have reduced and will continue to reduce rates. These cuts have had the most significant effect on the lowest of the four income brackets, reducing it by 0.4%. The top state income tax bracket experienced a 0.1% reduction, as well.
As a single earner or head of the household in Wisconsin, you'll be taxed at a rate of 4% if you make up to $11,450 in taxable income per year. Singles and heads of household making $252,150 and over in taxable income are subject to the highest tax rate of 7.65%. The tax rates are the same across all filing brackets, but the income levels change based on marital status. There are no additional local income taxes anywhere in the Badger state.
If you’re thinking about buying a home in the state, or if you’re looking to refinance a property, you might want to check out our Wisconsin mortgage guide to make sure you’re familiar with the rates and details of getting a mortgage there.
How You Can Affect Your Wisconsin Paycheck
The decisions you make when completing your W-4 form play a big role in determining the size of your paycheck. The more allowances you claim, the less taxes will be withheld from your paycheck and the more money goes into your pocket throughout the year. The reverse is also true: Choosing fewer allowances means more income withheld.
Claiming more allowances means you will have access to more of your income during the year. Be careful with this option, as you risk underpaying your taxes all year and owing money to the IRS in April. Claiming fewer allowances keeps you on the safer side in the sense that you are less likely to owe taxes at the end of the year. It also means that more of your money will remain tied up in withholding and unavailable to you during the year.
To avoid owing money to the IRS in April, you may also want to opt for an additional dollar withholding from each of your paychecks. There is a line on the W-4 that allows you to enter the amount you want withheld.
Another option for Wisconsin taxpayers is to put more of your paycheck into tax-advantage accounts like a 401(k) or 403(b) retirement account. You can also put money an HSA or FSA, which are two accounts that can be used for medical expenses. The money that you contribute to these accounts is deducted from your paycheck prior to taxes being withheld. So by increasing your contribution, you can lower your taxable income and possibly save some money in taxes. Keep in mind, however, that the funds you put into your FSA may not all roll over from year to year. If you don’t use them in time, you’ll lose them.
Wisconsin Top Income Tax Rate
| Year | Top Income Tax Rate |
| 2018 | 7.65% |
| 2017 | 7.65% |
| 2016 | 7.65% |
| 2015 | 7.65% |
| 2014 | 7.65% |
| 2013 | 7.75% |
| 2012 | 7.75% |
| 2011 | 7.75% |
| 2010 | 7.75% |
| 2009 | 7.75% |
| 2008 | 6.75% |
| 2007 | 6.75% |
| 2006 | 6.75% |
Most Paycheck Friendly Places
SmartAsset's interactive map highlights the most paycheck friendly counties across the U.S. Zoom between states and the national map to see data points for each region, or look specifically at one of the four ranking factors in our analysis: Semi-Monthly Paycheck, Purchasing Power, Unemployment Rate, and Income Growth.
Methodology To find the most paycheck friendly places for counties across the country, we considered four factors: semi-monthly paycheck, purchasing power, unemployment rate and income growth.
First, we calculated the semi-monthly paycheck for a single individual with two personal allowances. We applied relevant deductions and exemptions before calculating income tax withholding. To better compare withholding across counties, we assumed a $50,000 annual income. We then indexed the paycheck amount for each county to reflect the counties with the lowest withholding burden, or greatest take-home pay.
We then created a purchasing power index for each county. This reflects the counties with the highest ratio of household income to cost of living. We also created an unemployment index that shows the counties with the lowest rate of unemployment. For income growth, we calculated the annual growth in median income throughout a five year period for each county and then indexed the results.
Finally, we calculated the weighted average of the indices to yield an overall paycheck friendliness score. We used a one-half weighting for semi-monthly paycheck and a one-sixth weighting for purchasing power, unemployment rate and income growth. We indexed the final number, so higher values reflect the most paycheck friendly places.
Sources: SmartAsset, government websites, US Census Bureau 2018 American Community Survey, MIT Living Wage Study, Bureau of Labor Statistics
