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On December 29, 2025, Wisconsin Governor announced new tax breaks and changes to the state's tax system that are set to benefit residents in 2026. The changes come as part of a broader effort to stimulate the state's economy and provide relief to individuals and businesses struggling in the wake of the COVID-19 pandemic.One of the key changes announced is a reduction in income tax rates for middle-class families. The new tax rates are set to go into effect starting in 2026 and will provide relief to families earning between $30,000 and $100,000 annually. This reduction in income tax rates is expected to put more money back into the pockets of Wisconsin residents, providing a much-needed boost to household budgets.In addition to the reduction in income tax rates, the state also announced new tax breaks for small businesses. Under the new changes, small businesses with annual revenues of $1 million or less will be eligible for a tax credit of up to $5,000. This tax credit is designed to help small businesses recover from the financial hardships brought on by the pandemic and support their continued growth and success.Furthermore, the state also introduced a new tax deduction for homeowners who have recently purchased a property. Homeowners who bought a new home in 2025 will be eligible for a deduction on their property taxes for the first three years of ownership. This deduction is aimed at providing relief to new homeowners who may be facing higher property taxes as a result of rising housing prices.Overall, these new tax breaks and changes to the state's tax system are expected to provide much-needed relief to Wisconsin residents and businesses in 2026. Governor expressed confidence that these measures will help stimulate the state's economy and support continued growth and prosperity for all residents.