Filing Wisconsin Taxes and Amended Tax Returns
Wisconsin state income tax is divided into four rates between 3.5% and 7.65%. As with federal income tax, the Wisconsin tax is typically withheld from an employee’s paycheck.
For tax year 2025, the state has expanded the second income tax bracket to allow more income to be taxed at the lower 4.4% rate.
Single filers pay 3.5% on income up to $14,680, 4.4% on income from $14,680 to $50,480, 5.3% on income from $50,480 to $323,290, and 7.65% on income over $323,290.
Married couples filing jointly pay 3.5% on income up to $19,580, 4.4% on income from $19,580 to $67,300, 5.3% on income from $67,300 to $431,060, and 7.65% on income over $431,060.
The standard deduction for 2025 is $14,260 for single filers and $26,510 for married couples filing jointly.
All full and part-time residents as well as nonresidents must file Wisconsin taxes. The state's department of revenue website allows for easy tracking of tax refunds.
Full-year residents must file if their gross income meets or exceeds the filing threshold for their filing status and age.
For single filers under 65, the threshold is $13,930.
For married couples filing jointly where both are under 65, the threshold is $25,890. Part-year residents and nonresidents must file if their income from state sources is $2,000 or more.
More information on filing requirements can be found at the Wisconsin Department of Revenue website.
Estimated Taxes and Extensions
Individuals who have income not subject to withholdings, such as interest, real estate sales, and self-employment earnings, should file estimated taxes quarterly. Those who wish to pay by check or money order (payable to Wisconsin Department of Revenue) can send in a completed Form 1-ES. The state's department of revenue website also allows for estimated tax returns to be made online.
Those who cannot file state taxes by the deadline should apply for an extension which will provide an additional six-months to file and help to avoid failure-to-file penalties. Please note, all late payments will face a 1% interest charge per month following the original due date.
Amended Returns
An amended tax return may be necessary if the original return has been filed with an error or incorrect information. Full-year residents can do this by filing Form 1X for the year being amended. Partial-year and nonresidents should file a Form 1NPR and check the box for "amended" on the document. Those expecting a refund have four years from the original due date to file an amended return.
Late Payments
All late payments will face a 1% interest charge per month following the original due date.
Frequently Asked Questions
What is the retirement income exclusion for 2025?
Residents aged 67 or older can exclude up to $24,000 of retirement income annually from taxation, or $48,000 for married couples filing jointly. This exclusion applies to payments or distributions from qualified retirement plans under the Internal Revenue Code or from individual retirement accounts. Part-year residents may claim a portion based on their income sourced to the state.
Are Social Security benefits taxable?
Social Security and Railroad Retirement benefits are exempt from state taxation. This means residents do not pay state tax on these benefits regardless of income level.
What tax credits are available?
The state offers several tax credits including the Earned Income Tax Credit (up to 34% of the federal EITC), the Homestead Credit (up to $1,168 based on income and property taxes or rent paid), the Child and Dependent Care Credit (up to 100% of the federal credit), and the Married Couple Credit (up to $480 based on income and taxable wages earned in the state).
How is military income taxed?
Active-duty military pay is exempt from taxation. Military retirement income is also exempt. This applies to both residents serving in the military and military retirees living in the state.
What deductions are available for adoption expenses?
For tax year 2025, taxpayers can deduct up to $15,000 in adoption-related expenses, including adoption fees, court costs, and legal fees for a child for whom a final order of adoption has been entered. This increased from $5,000 in prior years.
Are capital gains taxed differently?
Capital gains are taxed as ordinary income at the same progressive rates that apply to wages and other income. Investment income, including dividends and interest, is also fully taxed as ordinary income.
Note: States & U.S. territories may make changes to their tax laws with little notice. We do our best to keep this information up-to-date, but it is provided on an "AS IS" basis. For more see our terms.