Taxes and Incentives

Tax Incentive Highlights for Businesses Brochure

Tax Incentive Highlights for Businesses Brochure [693 kB PDF]

The Wisconsin Economic Development Corp

The Wisconsin Economic Development Corp has an online economic impact map showing the grants, loans and tax credits awarded to Wisconsin businesses.

Wisconsin's main focus is on job creation and attracting business owners to start, expand or relocate in the state. This is evidenced in recent tax and regulatory reforms designed to make Wisconsin a more competitive place to do business. Recent initiatives include a two-year tax exemption for businesses that relocate to Wisconsin and a tax credit for businesses that create jobs.

Wisconsin's favorable tax rates and incentives make it easy to do business in the state and the Greater Madison region.

Wisconsin corporate income tax

Wisconsin's corporate income tax is a flat rate of 7.9%

Wisconsin individual income tax

There are five tax brackets for both single and married taxpayers, ranging from 4.6% to 7.75%.

Wisconsin sales tax

The Wisconsin sales and use tax are both 5% for consumers, which is below the national average of 5.85%.

County sales tax

Dane County, which includes most of the greater Madison region, assesses an additional 0.5% county tax rate for a total (Wisconsin plus county) sales tax of 5.5%

Tax benefits for individuals

Wisconsin encourages long-term commitment to living in our state.

  • No capital gains tax on investments held for five years or longer.
  • No estate tax in Wisconsin.
  • Social Security benefits are not taxable in Wisconsin.

Business incentives

There are many programs and tax exemptions, deductions and credits available to businesses that start, expand or relocate in Wisconsin.

  • Job creation tax incentive: $2,000 to $4,000 per employee.
  • Relocation credit: Two-year tax holiday for businesses relocating to Wisconsin.
  • Sales and property tax exemptions for machinery and equipment used by manufacturers.
  • Research and development incentives for corporations conducting research activities in Wisconsin.
  • Manufacturing and agriculture tax credit: Up to 7.5% for income derived from manufacturing or agricultural property located in Wisconsin.
  • Angel and early stage investment tax credits: 25% tax credit for investments made in qualified new business ventures.

For more information on these available business incentives: