Wisconsin Tax Guide for Employers (2026)

Wisconsin uses a progressive income tax system with its own withholding form. The state uses standard deductions that vary by filing status and a standard deduction phase-out for higher earners. Wisconsin also has reciprocal agreements with Illinois, Indiana, Kentucky, and Michigan. 

Wisconsin’s progressive income tax features multiple brackets with a standard deduction that phases out at higher income levels. Employees complete Form WT-4 to specify their filing status. The state has reciprocal agreements with four neighboring states, meaning employees from those states working in Wisconsin may be exempt from Wisconsin withholding. 

Wisconsin supports the following supplemental calculation methods. Supplemental wages such as bonuses and commissions will be calculated using the applicable method. 

Your assigned SUTA rate will be based on your company’s experience with unemployment claims. New employers typically start at the default rate of 3.05%. 

Follow these steps to begin withholding Wisconsin payroll taxes for your employees:

1. Obtain your Federal EIN at irs.gov
2. Register with the Wisconsin Department of Revenue at tap.revenue.wi.gov
3. Register for SUTA with the Wisconsin Department of Workforce Development at dwd.wisconsin.gov
4. Submit a Netchex tax team request to enable Wisconsin SIT and SUTA
5. Have each employee complete their tax forms with an automated onboarding task in Netchex, digitally storing tax forms
6. Configure any additional tax settings in the employee profile

Once setup is complete in Netchex, the system will automatically calculate, withhold, and remit all Wisconsin payroll taxes on your behalf.

The following are general filing and deposit deadlines for Wisconsin payroll taxes. Deadlines may vary based on your employer size and deposit frequency. Always verify current schedules at Wisconsin Department of Revenue.

Note: Deadlines are subject to change. Always confirm current requirements directly with Wisconsin Department of Revenue at https://www.revenue.wi.gov/Pages/Businesses/Withholding.aspx.

The following official resources will help you stay current on Wisconsin payroll tax requirements:

• Wisconsin Department of Revenue
• Wisconsin DOR Withholding Tax
• Wisconsin Reciprocal Agreements

Does Wisconsin have reciprocal tax agreements?
Yes. Wisconsin has reciprocal agreements with Illinois, Indiana, Kentucky, and Michigan. Employees who live in those states and work in Wisconsin may be exempt from Wisconsin withholding.

What form do Wisconsin employees complete?
Employees complete Wisconsin Form WT-4, the Employee’s Wisconsin Withholding Exemption Certificate.

What is Wisconsin’s top income tax rate?
Wisconsin’s top marginal income tax rate is 7.65%.

What is Wisconsin’s SUTA wage base?
Wisconsin’s SUTA wage base is $14,000 per employee per year. Verify at dwd.wisconsin.gov.

What is Wisconsin’s supplemental withholding rate?
Wisconsin uses a flat supplemental withholding rate of 7.65%.