(Madison, Wis.) – A new report from Forward Analytics, A Decade of Change: Wisconsin’s Income Tax Since 2012, highlights the significant changes over the past 10 years to the individual income tax, the largest source of revenue for the Wisconsin state government. The report showcases how four major tax cuts since 2012 generated nearly $7 billion of significant tax relief through 2023 for Wisconsin taxpayers.
Since 2012, the groups that saw the largest cuts in percentage terms were single filers with incomes under $48,000 and married-joint filers with incomes less that $68,000. These two groups saw their tax rates reduced by 24-26%. In 2022, 69% of single filers and 39% of married-joint filers were part of these income groups.
Filers with incomes above $48,000 (single) and $68,000 (married) also experienced significant relief with savings gradually declining as incomes rose. However, even some filers with relatively high incomes saw significant relief. Single filers with incomes between $400,000-$600,000 and married-joint filers with incomes between $530,000-$800,000 saw reductions in their tax rates ranging from 10%-15%. Filers with incomes over $1 million saw reductions of 8% or less.
Net Effect of the Rate Reductions:
- A 24% cut from 4.6% to 3.5% in the lowest income tax bracket.
- A 28% cut from 6.15% to 4.4% in the second bracket.
- A 19% and 22% cut from 6.5% and 6.75% to 5.3% in the third bracket (underwent a merging of two brackets in 2013).
- A 1.3% cut from 7.75% to 7.65% in the top bracket.
While the income tax cuts were primarily intended to ease the financial burden on Wisconsin residents, they also improved the competitiveness of the state’s income tax on a national level in multiple metrics. However, the improvements were not as large as might be expected due to the other states also cutting rates.
Wisconsin went from having the 4th highest bottom rate of all 35 states with a graduated income tax to having the 8th highest in 2025 with a cut from 4.65% to 3.5%. However, Wisconsin’s ranking in the top tax rate remains among the highest in the nation and worsened from 11th highest in 2012 to 9th highest in 2025.
Looking at the broader picture, Wisconsin’s rank on income tax collections per capita improved from 13th highest in 2012 to 26th highest in 2022. Its ranking on collections relative to personal income improved more dramatically, from 9th to 29th. “Wisconsin has long been viewed as a high income-tax state,” said Forward Analytics Director Dale Knapp. “The changes enacted since 2013 alters that narrative which is a positive for the state.”
Find the entire study HERE.
