Wisconsin Drops to 16th Highest Taxed
And now ranks 22nd among states when all fees included, new report shows.
New Census Bureau figures just released for 2014 show Wisconsin’s state-local tax burden declining from 15th highest among the states in 2013 to 16th in 2014. Taxes here fell from 10.9% of personal income in 2013 to 10.8% in 2014. Nationally, taxes relative to income rose from 10.4% in 2013 to 10.6% in 2014. Census figures always lag two years.
After reaching 11.8% of income in 2011, Wisconsin’s state-local tax burden declined for three consecutive years, due largely to a drop in local taxes as a share of personal income. During 2011-14, Wisconsin’s local tax burden fell from 4.8% to 4.1% of income. By comparison, state taxes as a share of personal income dropped less—0.3 percentage points, from 7.0% to 6.7%. A tightening of property tax limits imposed by the state on local governments explain the drop in local tax burden.
The newly-released Census figures also show that, among Wisconsin’s major taxes:
- Property taxes claimed 3.9% of income, 11th highest among the states;
- Individual income taxes claimed 2.8% of income, 12th highest nationally;
- Sales taxes took 2.0% of income, 34th highest; and
- Corporate income taxes claimed 0.4% of income, 15th highest.
A broader measure of state-local revenue adds to taxes fees charged by state or local governments. Combined, taxes and fees in Wisconsin claimed 13.8% of income in 2014, down from 14.0% in 2013. The state’s rank on this tax-and-fee measure declined from 18th to 22nd.
WISTAX is a nonpartisan, nonprofit organization dedicated to public policy research and citizen education.