Taxation in Wisconsin

Updated on Tuesday 21st May 2019

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Companies in Wisconsin are subject to the corporate franchise tax or the corporate income tax, plus the economic development surcharge. The personal income tax ranges from 4.6% to 7.65% and it is applicable to incomes of business entities like limited liability companies. Let our team of company formation specialists in USA tell you more in this sense and guide you throughout the registration process of companies in Wisconsin.

What is the corporate franchise tax in Wisconsin?

7.9% represents the corporate franchise tax rate in Wisconsin which is applicable to C and S corporations and their net income. All the returns and payments must be done by April 15th (every year), respecting the requirements of the Wisconsin Tax Revenue Department. Feel free to talk to our consultants for more details in this matter.

What is the economic development surcharge rate?

C corporations and most of the S corporations established in Wisconsin are subject to the economic development surcharge, especially if the gross receipts achieve $4 million. 3% of the net business income of a company in Wisconsin or $25 represent the economic development surcharge rate, mentioning that such a tax cannot surpass $8,900. It is good to know that limited liability companies and partnerships are not subject to the economic development surcharge in Wisconsin. If you would like to start a business in USA, and especially in Wisconsin, you need to pay attention to the tax structure in this American state. You are recommended to talk to our company formation agents in USA for additional details in this direction.

What is the sales tax in Wisconsin?

The standard sales tax in Wisconsin is set at a 5% rate applicable to most of the products and services meant for sale purposes in this state. Furthermore, 62 districts can impose a supplementary sales tax of 0.5%. The county use tax of the same amount is imposed for the sales of boats, aircraft, and vehicles in Wisconsin. The sales tax in Wisconsin is applicable to clothing, electronics, computers and software and also to varied services including hotel room rentals in Wisconsin. There are also sales tax exemptions in  Wisconsin and refer to food products (except prepared ones like soft drinks), newspapers, prescription drugs, water supply.

The personal income tax in Wisconsin

The personal income registered in Wisconsin is taxable under four brackets as follows in the table below:
Wisconsin Taxable Income Tax Rate
Between $0 and $11,450   4.00%
Between $11,450 and $22,900 5.84%
Between $22,900 and $252,150 6.27%
For more than $252,150 7.65%

If you are a foreign entrepreneur wanting to open a company in USA and particularly in Wisconsin, it is suggested to first ask about the tax requirements imposed in this state. As for the company formation in USA and all the conditions imposed, our team of company formation agents in USA can supervise the entire registration process. Let us remind you that you can also read the general guide to company formation in Wisconsin and find out more about how the business is done in this American state.

The property tax in Wisconsin

1.94% is the average property tax rate in Wisconsin, mentioning that ten of the municipalities can impose their own property tax rate of 2%. Wisconsin imposed the fifth-highest property tax rate in USA. Let us remind you that our team of consultants can tell you more about the taxes you need to pay in Wisconsin.

Other tax facts in Wisconsin

The Gas Tax, the Cigarette Tax, and the Mobile Home Tax are among the taxes to consider in Wisconsin. In the case of limited liability companies in Wisconsin, these are pass-through entities and therefore the taxation is made on the personal income of each forming member of the company. The same thing is available for partnerships registered in Wisconsin. There are also companies incorporated in Wisconsin which are subject to Nexus. This means that if the business operates in other American states too, but generates incomes in Wisconsin, such business is subject to the taxes in those states. In most cases, Nexus might be a complicated aspect when talking about taxes for companies in Wisconsin. This is why a tax professional or an accountant in Wisconsin is not only recommended but mandatory. You might want to direct your attention to an accounting firm in USA that can be in charge of all the aspects regarding the taxes, filings, and payments among many things.
If you would like to know more about the taxation in Wisconsin and about how to set up a company in USA, regardless of the chosen state, we invite you to contact our team of company formation experts in USA.