Wisconsin State Income Tax Rates and Brackets for 2025

Key Takeaways

• Wisconsin expands the 4.4% income tax bracket for 2025, affecting residents, workers, immigrants, and employers.
• New tax rates apply to income earned after December 31, 2024; employers must update payroll by January 1, 2025.
• Highest tax rate remains 7.65%; changes offer relief mainly for middle-income taxpayers and international students.

Wisconsin has recently updated its state income tax rates and brackets for the 2025 tax year. These changes, signed into law by Governor Tony Evers on July 3, 2025, as part of the 2025-2027 biennial state budget, will affect many residents, including immigrants, workers, students, and families living in the state. The new tax brackets take effect for taxable years beginning after December 31, 2024. This update explains what has changed, who is affected, when the changes take effect, what actions are required, and what these changes mean for people with pending or future tax filings in Wisconsin.

Summary of What Changed

The most important update is the adjustment of Wisconsin’s state income tax rates and brackets for 2025. The new law expands the second income tax bracket, which means more income will be taxed at the lower 4.4% rate instead of higher rates. This change is designed to give tax relief to many residents, especially those with middle incomes. However, the highest tax rate of 7.65% remains unchanged for those with the highest incomes.

Here are the new tax brackets for 2025:

For Single Filers:
– 3.5% on taxable income from $0 to $14,680
– 4.4% on taxable income over $14,680 up to $50,480
– 5.3% on taxable income over $50,480 up to $323,290
– 7.65% on taxable income over $323,290

For Married Filing Jointly:
– 3.5% on taxable income from $0 to $19,580
– 4.4% on taxable income over $19,580 up to $67,300
– 5.3% on taxable income over $67,300 up to $431,060
– 7.65% on taxable income over $431,060

For Married Filing Separately:
– The rates are similar, but the income thresholds are adjusted. The exact numbers are not detailed in the latest update, but they usually follow the same pattern as the other filing statuses.

The main change is the expansion of the second bracket, which now covers a larger range of income. This means more people will pay the lower 4.4% rate on a bigger part of their income, instead of moving into the higher 5.3% bracket as quickly as before.

Who Is Affected by These Changes?

These new tax brackets affect anyone who lives or works in Wisconsin and is required to file a state income tax return. This includes:

• Residents: Anyone who lives in Wisconsin for the entire year must file a state tax return and will be subject to the new rates.
• Part-year Residents: If you moved into or out of Wisconsin during the year, you will need to calculate your income for the time you lived in the state using the new brackets.
• Nonresidents with Wisconsin Income: If you do not live in Wisconsin but earned income from sources in the state (such as a job or property), you may also need to file a Wisconsin tax return and pay taxes based on the new rates.
• Immigrants and International Students: If you are an immigrant or an international student living, working, or studying in Wisconsin, you are also affected if you have taxable income in the state.
• Employers: Businesses and employers in Wisconsin need to update their payroll systems to withhold the correct amount of state income tax from employees’ paychecks based on the new brackets.

Effective Dates

The new tax rates and brackets apply to taxable years beginning after December 31, 2024. This means that when you file your Wisconsin state income tax return for the 2025 tax year (which you will do in early 2026), you must use the new brackets. For the 2024 tax year (filed in 2025), the old rates and brackets still apply.

Required Actions for Taxpayers

If you live or work in Wisconsin, here’s what you need to do:

1. Check Your Withholding: Make sure your employer is using the new 2025 tax brackets to withhold the correct amount of state income tax from your paycheck. If you are self-employed, update your estimated tax payments.
2. Review Your Tax Situation: Look at your expected income for 2025 and see which bracket you will fall into. This can help you plan for any changes in your tax bill.
3. Update Tax Software or Forms: If you use tax software or a tax preparer, make sure they are using the updated 2025 rates and brackets.
4. File on Time: When it’s time to file your 2025 Wisconsin state income tax return in 2026, use the new rates and brackets. The official forms and instructions will be updated by the Wisconsin Department of Revenue.
5. Contact the Department of Revenue if Needed: If you have questions about your specific situation, you can reach out to the Wisconsin Department of Revenue for help. Their website provides contact information and resources.

For more details on filing requirements, forms, and credits, visit the Wisconsin Department of Revenue website.

Implications for Pending Applications and Future Filings

If you have a pending application or are planning to file your Wisconsin state income tax return for the 2025 tax year, you must use the new tax brackets. This is especially important for:

• People with Pending Tax Returns: If you are amending a previous year’s return, use the rates for that year. For 2025 returns, use the new brackets.
• Immigrants and New Residents: If you recently moved to Wisconsin or are planning to move, be aware that your income earned in 2025 will be taxed under the new system.
• Employers: Make sure payroll systems are updated before January 1, 2025, to avoid under- or over-withholding state income tax.

If you are unsure which tax year your income falls under, remember that the new brackets apply to income earned in 2025 and after.

How the Changes Affect Different Groups

Middle-Income Taxpayers:
The expansion of the 4.4% bracket means that people with middle incomes will pay less tax on a larger portion of their earnings. For example, a single filer earning $40,000 will now pay 3.5% on the first $14,680 and 4.4% on the next $25,320, instead of moving into a higher bracket as quickly as before.

High-Income Taxpayers:
The top rate of 7.65% still applies to income over $323,290 for single filers and $431,060 for married couples filing jointly. This means high earners will not see much change in their overall tax rate.

Low-Income Taxpayers:
The lowest bracket (3.5%) remains the same, so people with the lowest incomes will not see a change in their tax rate. However, the expanded second bracket may help some low-income taxpayers who earn just above the first threshold.

Immigrants and International Students:
If you are an immigrant or international student working in Wisconsin, you must pay state income tax on your earnings. The new brackets may lower your tax bill if your income falls within the expanded 4.4% range. It’s important to check your visa status and tax residency, as this can affect your filing requirements.

Employers and Payroll Departments:
Employers must update their payroll systems to reflect the new brackets starting January 1, 2025. This ensures that employees have the correct amount of state income tax withheld from their paychecks.

Background: How Wisconsin’s Income Tax System Works

Wisconsin uses a graduated income tax system. This means that different parts of your income are taxed at different rates. For example, if you are a single filer and earn $60,000, you pay:

• 3.5% on the first $14,680
• 4.4% on the next $35,800 (the amount between $14,680 and $50,480)
• 5.3% on the remaining $9,520 (the amount between $50,480 and $60,000)

You do not pay the highest rate on your entire income—only on the part that falls into each bracket.

Wisconsin also offers deductions and credits that can lower your taxable income. For example, you may be able to claim an itemized deduction credit for certain federal deductions. This can help reduce the amount of tax you owe.

Why Did Wisconsin Change Its Tax Brackets?

The main reason for the change is to provide tax relief to residents, especially those with middle incomes. By expanding the second bracket, the state allows more income to be taxed at a lower rate. This means people keep more of their earnings, which can help with the cost of living and encourage spending in the local economy.

Governor Tony Evers and lawmakers included these changes in the 2025-2027 biennial budget to balance tax relief with the need to fund state services like schools, roads, and healthcare. The top rate remains the same to ensure that the state still collects enough revenue from high earners.

What Experts and Analysts Say

According to analysis by VisaVerge.com, these changes are seen as a step toward making Wisconsin’s tax system more fair and balanced. By expanding the lower brackets, the state helps middle-income families and workers, who often feel the most pressure from rising costs.

Some economists believe that lowering taxes for middle-income earners can help the economy by giving people more money to spend. Others point out that the state must still collect enough revenue to pay for important services.

Policy makers, including Governor Tony Evers, say the new brackets reflect a careful balance between giving tax relief and keeping the state’s finances healthy.

Practical Steps for Taxpayers

Here’s what you should do to prepare for the new tax brackets:

• Check Your Paystub: Starting in January 2025, look at your paystub to make sure your employer is withholding the correct amount of state income tax.
• Update Your W-4 Form: If your income or family situation changes, update your Wisconsin withholding form with your employer.
• Use Updated Tax Software: When you file your 2025 tax return in 2026, make sure your tax software or preparer is using the new brackets.
• Plan for Refunds or Payments: If you usually get a refund or owe money at tax time, the new brackets may change your situation. Plan ahead so you are not surprised.
• Seek Help if Needed: If you have questions, contact the Wisconsin Department of Revenue or a tax professional.

For more information, visit the Wisconsin Department of Revenue website, which has updated forms, instructions, and contact details.

Special Considerations for Immigrants and International Students

If you are new to Wisconsin or the United States 🇺🇸, state income tax rules can be confusing. Here are some tips:

• Check Your Residency Status: Your tax obligations depend on whether you are a resident, part-year resident, or nonresident. The Wisconsin Department of Revenue website has guides to help you figure this out.
• Understand Your Income Sources: If you earn money from a job, business, or property in Wisconsin, you may need to file a state tax return, even if you live elsewhere.
• Use the Correct Forms: Make sure you use the right tax forms for your situation. The main form for individuals is Form 1, which you can find on the Wisconsin Department of Revenue website. If you need to file as a nonresident or part-year resident, use Form 1NPR, also available on the official site.
• Get Help if Needed: Many colleges and community organizations offer free tax help for immigrants and international students.

What Happens Next?

The new tax brackets are now law and will be used for the 2025 tax year. The Wisconsin Department of Revenue will update its forms, instructions, and online tools to reflect the changes. Employers and payroll providers must update their systems by January 1, 2025.

If you have questions or need help, you can contact the Wisconsin Department of Revenue through their official website.

Key Takeaways

• Wisconsin’s state income tax rates and brackets have changed for 2025.
• The second bracket has been expanded, so more income is taxed at the lower 4.4% rate.
• The changes take effect for income earned in 2025 and after.
• All residents, workers, immigrants, and employers in Wisconsin are affected.
• Check your withholding, update your tax forms, and use the new brackets when filing your 2025 return.
• Visit the Wisconsin Department of Revenue website for the latest forms and guidance.

By staying informed and taking the right steps, you can make sure you pay the correct amount of state income tax and avoid surprises at tax time. If you have any doubts or special circumstances, reach out to the Wisconsin Department of Revenue or a trusted tax professional for help.

Learn Today

Income Tax Brackets → Ranges of income taxed at specific rates, affecting how much tax a person pays on each income portion.
Withholding → The process where employers deduct taxes from employees’ paychecks to pay government income taxes.
Part-year Resident → A person who lived in Wisconsin for only part of the tax year and must file taxes accordingly.
Taxable Income → The portion of income subject to tax after deductions and exemptions are applied.
Amended Return → A tax return filed to correct or update information from a previous tax year.

This Article in a Nutshell

Wisconsin’s 2025 state income tax brackets expand the 4.4% rate to cover more middle incomes. Residents, immigrants, and employers must update withholding systems. The highest rate stays at 7.65%. Changes impact tax filings from 2025 onward, providing relief while maintaining essential state revenue funding.
— By VisaVerge.com