MADISON, Wis. — The amount of taxes Wisconsinites pay has fallen to its lowest level on record per a recent analysis from a nonpartisan, independent statewide policy research organization.

,Wisconsin was once ranked the third highest for taxes in the nation as recently as 2000. However, the latest data showed in 2022 the state’s tax ranking dropped to 35th in the country, which is the lowest since at least the 1990s, according to a new report from Wisconsin Policy Forum.

What You Need To Know

  • State and local taxes in 2022 fell to a record low of just 9.9% of personal income in Wisconsin, down from 10.3% the year before, according to federal data in a new report from the Wisconsin Policy Forum

  • Once a state ranked in the top 10 for tax levels, Wisconsin’s tax ranking has fallen to 35th nationally

  • According to the report, rising incomes, state limits on local property taxes, and a recent large state income tax cut are reasons for the drop

  • Though the tax burden has dropped for Wisconsinites, so too has spending in key areas, including K-12 education

“What we call the tax burden in Wisconsin is just the percentage of personal income, all the income that people in Wisconsin receive, how much of that goes to state and local taxes,” Jason Stein, Wisconsin Policy Forum’s president, explained.

Federal data shows state and local taxes fell to a record low of just 9.9% of personal income for Wisconsinites in 2022, which is down from 10.3% in the prior year.

“First off, incomes have been rising, rose rapidly in the years that we’re talking about,” Stein said. “At the same time, the state kept very tight limits on property taxes in those years and the state did a $1 billion income tax cut.”

Though the tax burden has dropped for Wisconsinites, so has spending in key areas, including K-12 education.

“When we chart K-12 spending, it’s the same thing — where Wisconsin is above the national average and falls below, so those two things are very closely correlated with one another,” Stein added.

As for why taxes in Wisconsin have dropped more than in other states, Stein said the answer could have to do with who is in the Capitol.

“One big factor has been the legislature has been under the control of one party since 2011 and that party has made it a very aggressive priority, maybe the number one priority is to hold down the growth in taxes,” Stein said.

Regardless of the reason, there is one more thing Stein wants people to know.

“It doesn’t mean everybody’s taxes have gone down over the past 20 years,” Stein added. “We’re just talking about that average, and, in fact, for some groups more than others.”

While Republicans want to cut income taxes again in the next state budget, there has been disagreement on how to do that with Democrat Gov. Tony Evers in the past.

Another factor to consider is depending on where you live, several local property tax referenda passed this fall, and those increases will hit tax bills in December.

Read the full report from the Wisconsin Policy Forum, here.

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