Wisconsin State Income Tax Withholding
Last Updated: January 2026
Overview
Wisconsin uses a progressive income tax system with four tax brackets. The state requires employees to complete a state-specific withholding form (Form WT-4) and uses a unique exemption-based calculation method.
2026 Tax Rates
Single Filers
| Taxable Income | Tax Rate |
|---|---|
| $0 - $14,320 | 3.50% |
| $14,321 - $28,640 | 4.40% |
| $28,641 - $315,310 | 5.30% |
| Over $315,310 | 7.65% |
Married Filing Jointly
| Taxable Income | Tax Rate |
|---|---|
| $0 - $19,090 | 3.50% |
| $19,091 - $38,190 | 4.40% |
| $38,191 - $420,420 | 5.30% |
| Over $420,420 | 7.65% |
Top Marginal Rate: 7.65%
Deductions and Exemptions
Standard Deduction (2026)
| Filing Status | Maximum Amount |
|---|---|
| Single | $13,230 |
| Married Filing Jointly | $24,480 |
| Head of Household | $17,330 |
Note: Wisconsin's standard deduction is reduced (slides) as income increases above certain thresholds.
Personal Exemption
- Withholding Exemption Amount: $700 per exemption (2026)
- This amount is used in withholding calculations, not the actual tax return
Supplemental Wage Rate
- Supplemental wages: 7.65% (top marginal rate) or use aggregate method
Special Considerations
- Form WT-4: Wisconsin REQUIRES employees to complete Form WT-4 for state withholding
- No Local Income Taxes: Wisconsin does not have local income taxes
- Sliding Standard Deduction: Wisconsin's standard deduction decreases as income increases
Form WT-4 Requirements
Wisconsin requires employees to complete Form WT-4 to indicate:
- Filing status (single, married, head of household)
- Number of exemptions claimed
- Additional withholding amount (if any)
- Exempt status (if applicable)
New Employees: Must complete Form WT-4 at the start of employment. If no form is received, withhold at the single rate with zero exemptions.
Exemption Calculation
Wisconsin withholding uses exemptions to reduce taxable wages:
Exemption Value: $700 per exemption (2026)
Formula: _CODE_BLOCK_0_
Then apply the appropriate tax bracket rates to the result.
Retirement Income
Wisconsin provides favorable treatment for certain retirement income:
- Private Pension Exclusion: Up to $5,000 for qualifying retirement income
- Social Security: Exempt from Wisconsin income tax
- Military Retirement: Partially exempt
Recent Changes
Wisconsin periodically adjusts its tax brackets and standard deduction for inflation. Employers should:
- Check for updated withholding tables each January
- Update payroll systems with new bracket thresholds
- Verify exemption amounts