Gov. Evers Celebrates Work to Lower Out-of-Pocket Costs for Working Families as Sales Tax on Residential Utility Bills Ends

MADISON — Gov. Tony Evers today celebrated his plan to lower energy bill costs for Wisconsin’s working families, a crucial piece of which will go into effect tomorrow, Oct. 1, 2025. Beginning tomorrow, thanks to the bipartisan, pro-kid budget Gov. Evers enacted this summer, Wisconsin residents will no longer pay sales and use tax on electricity and natural gas consumed in their homes, helping to lower out-of-pocket costs on energy and utility bills across the state. The proposal, which Gov. Evers originally proposed in the executive budget he introduced in February, is projected to save Wisconsin households more than $178 million over the next two years. The governor will be visiting communities across the state this week to celebrate the end of the sales tax on home utilities, along with other efforts in the 2025-27 Biennial Budget designed to lower costs for working folks and families statewide.

“A top priority for me has been working to give working families across our state more breathing room in their household budgets. There’s no doubt about it—Wisconsinites are feeling the squeeze of President Trump’s tariff taxes and reckless Republican decisions that will cause prices to go up on things like school supplies, healthcare, groceries, clothes, gas, and everything in between. It’s why I spent months fighting to make sure our state budget included my plan to help lower out-of-pocket costs on energy bills, which will go a long way toward helping folks and families make ends meet,” said Gov. Evers. “Starting this week, Wisconsinites will no longer see sales and use taxes on utility bills, which means you’ll be keeping more of your hard-earned paychecks in your pockets—and that’s great news for folks, families, seniors, and so many others across our state.”

Beginning Oct. 1, electricity and natural gas sold for residential use is exempt from Wisconsin sales and use tax regardless of when it is sold. Residential use is defined as use in a structure or portion of a structure that is an individual’s permanent residence, but does not include use in transient accommodations, motor homes, travel trailers, or other recreational vehicles. Additional information on the residential utilities tax elimination is available from the Wisconsin Department of Revenue (DOR) here, and questions should be directed to the DOR by phone at (608) 266-2776 or email DORSalesandUse@wisconsin.gov.

Working families across the state and nation continue to face an array of rising costs that are putting a significant strain on household budgets. According to the U.S. Bureau of Labor Statistics, last month, grocery prices were up 2.7 percent from 2024, and according to the Budget Lab at Yale, the nation is facing the highest overall average effective tariff rate since the Great Depression, resulting in an average loss of $2,400 per household just this year.

The governor’s announcement today will be welcome news as President Trump and Republicans in Congress continue to pursue policies that will cause costs to go up for Wisconsinites across the state. In addition to new tariff taxes recently announced by President Trump, for example, the governor’s announcement today comes as President Trump and Republicans in Congress work to roll back clean energy investments will cause the average household energy costs across the U.S. to increase by an additional $170 annually over the next decade, according to a recent analysis by Energy Innovation. In Wisconsin alone, Wisconsinites will face a $300 annual increase on household energy bills due to the actions of the Trump Administration by 2035.

Gov. Evers last month also released new estimates showing President Trump’s signature legislation, the ‘Big Beautiful Bill,’ which was supported and passed by Republicans in Congress, including every Republican member of Wisconsin’s congressional delegation, will increase costs to Wisconsin taxpayers by over $284 million in future budgets—$142 million annually—while forcing over 270,000 Wisconsinites to lose their health insurance and tens of thousands of Wisconsinites to lose access to basic food necessities. More about the devastating impacts of Republicans’ ‘Big Beautiful Bill,’ is available here.

Similarly, unless Congress approves an extension, premium tax credits designed help lower the cost of healthcare coverage premiums are set to expire at the end of the year, which will force millions of Americans to pay higher healthcare costs. Over 300,000 Wisconsinites depend on coverage through the Affordable Care Act, including 270,000 who receive premium tax credits that save them on average $585 each month. If Republicans in Congress fail to extend the tax credits, a new estimate released yesterday indicates affected Wisconsinites will face premiums increasing for comparable plans by as much as nearly $600 annually.

As families and communities face devastating federal cuts to basic needs programs, as well as efforts to gut measures that help lower out-of-pocket costs for working families, Gov. Evers is working to lower everyday, out-of-pocket costs for working families, from lowering the cost of child care to expanding healthcare access, especially in rural communities, to cutting taxes for middle-class families.

NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. While it is believed to be reliable, Urban Milwaukee does not guarantee its accuracy or completeness.