Taxes

Wisconsin has a business-friendly and entrepreneurial mindset. The state legislature of Wisconsin has passed positive business tax changes in every biennial legislative session since the early 1970's.

Corporate Income tax
Base Net Income
Flat Rate 7.9%
Recycling Surcharge 3.0% of tax due before credits*
Apportionment 100% Sales
 
Capital Stock - Net Worth Tax
None
 
Income Tax Credit,for Manufacturing and Agriculture
The State of Wisconsin is beginning a process of a gradual,increase of tax credits to individuals and entities for manufacturing and agricultural activities in Wisconsin. To learn more, read the Wisconsin Department of Revenue, Wisconsin Manufacturing and Agriculture Credit fact sheet 1107 (PDF).
 
The rate range increases as follows:
2012 1.875%
2013 3.75%
2014 5.526%
2015 and beyond 7.5%
 
Income Tax - Personal
Rate Range 4.60% to 7.75%
Recycling Surcharge 0.2% application to net business income of individuals*
 
Property Tax
Base: Real property and tangible personal property.
Exemptions: Machinery and equipment used in manufacturing:manufacturing merchant and farm inventories; and computer hardware and software. This benefit is built directly into Wisconsin's tax code and is available to all businesses that are eligible. Read the Property Tax Exemption for Manudacturing Machinery and Equipment (PDF).
City of Madison net mill rate of $24.2006 per $1,000 of full value.
 
Sales and Use Tax
Dane County Rate 5.5% (State = 5.0%, Dane County = 0.5%)
Exemptions: Manufacturing equipment, manufacturing consumables, pollution control equipment, and production fuel and electricity
 
Unemployment Compensation
Base $14,000
Rate range 0.27% to 9.80%
New Employers: 3.25% with payroll under $500,000; 4.10% with payroll over $500,000; 6.60% for construction employers
 
*The Wisconsin recycling surcharge is limited to a maximum of $9,800 (minimum $25). The surcharge is generally imposed on taxpayers engaged in a trade or business with gross receipts of at least $4,000,000 for the taxable year.
 
Last Updated: 07/12/2013

Contact the Office of Business Resources

Office of Business Resources
(608) 267-4933
obr@cityofmadison.com