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On December 2, 2025, the state of Wisconsin announced a new taxation plan aimed at boosting state revenue and addressing budget deficits. The plan includes several key measures that will impact residents and businesses across the state.One of the main components of the new plan is an increase in the sales tax rate from 5% to 6%. This increase is expected to generate an additional $500 million in revenue for the state each year. The extra revenue will be used to fund essential services such as education, healthcare, and infrastructure projects.In addition to the sales tax increase, the state will also be implementing a new tax on online purchases. With the rise of e-commerce in recent years, Wisconsin has seen a significant decline in revenue from sales tax. By levying a tax on online purchases, the state hopes to level the playing field for brick-and-mortar retailers and generate much-needed revenue.Another key measure in the new taxation plan is a tax increase on high-income earners. Individuals earning over $250,000 a year will see a marginal tax rate increase from 7.65% to 8.5%. This change is expected to bring in an additional $300 million in revenue annually.Governor Sarah Davis, who spearheaded the new taxation plan, emphasized the importance of ensuring that all Wisconsinites pay their fair share to support vital state services. She stated, "These changes are necessary to address our budget deficits and provide the necessary funding for our schools, hospitals, and roads. We must all contribute to ensure a prosperous future for Wisconsin."While some residents have expressed concerns about the tax increases, others see them as a necessary step to balance the state budget and maintain essential services. Business organizations have generally supported the new plan, recognizing the need for stable state funding to create a favorable environment for economic growth.Overall, the new taxation plan in Wisconsin represents a significant shift in the state's fiscal policy. By implementing these measures, the state aims to increase revenue, address budget deficits, and ensure the long-term financial health of Wisconsin.