Overview
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.
State Income Tax (SIT)
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.
| Tax Structure | Progressive with brackets |
| State Withholding Form | Form WT-4 |
| Filing Statuses | S, M, H |
| Standard Deduction | Phases out at higher income levels |
| Reciprocal States | IL, IN, KY, MI |
Supplemental Wages
Wisconsin supports the following supplemental calculation methods. Supplemental wages such as bonuses and commissions will be calculated using the applicable method.
Employer State Unemployment Tax (SUTA)
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%.
| Tax Type | Employer-paid only |
| Default New Employer Rate | 3.05% |
| Rate Assignment | Experience-rated; assigned annually by the state |
Other Taxes & Obligations
Wisconsin does not currently impose significant additional state-level payroll taxes beyond SIT and SUTA. This keeps payroll relatively streamlined compared to states with multiple layers of tax obligations.
Disclaimer: This content is provided for general informational purposes only and does not constitute legal, tax, or accounting advice. Netchex does not provide tax or legal guidance and makes no representations regarding the accuracy or applicability of this information. Laws and regulations may change. The information on this page reflects payroll tax guidelines as of March 2026. For the most current requirements, please refer to:
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