New Fed Tax Figures Show Little Change in State Tax Rank
State-Local Taxes Here Claimed 11.3% of Income in 2013, 11th Highest
MADISON—Newly-released figures from the U.S. Census Bureau show Wisconsin’s state-local tax rank among the states changed little in 2012-13 (2013). After Illinois and Minnesota leapfrogged the state in 2012 and dropped Wisconsin to 12th, the Badger State moved up a notch to 11th in 2013, despite its tax burden declining slightly from 11.4% to 11.3%.
The reason for Wisconsin’s change in rank was that Wyoming, which relies to a great extent on resource taxes, dropped out of the top 10 for the first time since 2000, falling from fourth to 13th. While Illinois’ burden and rank (eighth) were unchanged, Minnesota’s tax take rose from 11.6% to 11.8% and its rank climbed from ninth to seventh.
Wisconsin tax burden and rank changed little during 2008-13. Total tax collections as a share of income ranged from 11.2% to 11.4% of income during five of those years; in 2011 it jumped to 11.7%.
Our rank among the states ranged from ninth in 2010 to 13th in 2008.
Among Wisconsin’s major taxes:
- property taxes claimed 4.4% of income, 7th among the states;
- individual income taxes claimed 3.0% of income, 10th highest nationally;
- sales taxes were 2.0% of personal income and 34th; and
- corporate income taxes claimed 0.4% of income, 16th highest.
“In the weeks to come, WISTAX will examine these new federal figures in detail,” notes President Todd A. Berry, “and provide greater analysis through our biweekly Focus newsletter.”
In its 84th year, WISTAX is a nonpartisan, nonprofit organization that aims to improve Wisconsin government through independent policy research and citizen education.