Wisconsin’s tax burden remained at an all-time low in 2025, as its residents’ combined incomes grew at the same rate as state and local tax collections, a new Wisconsin Policy Forum report finds.
This ratio between what Wisconsin residents pay in all state and local taxes and what they receive in income from all sources held steady at 9.60% in 2025 — matching the previous year’s record low to remain at the lowest total burden since at least the 1970s.
Each year, the Wisconsin Policy Forum examines every local and state tax paid, from bingo license fees ($187,039 in 2025) to gross local property taxes ($13.64 billion). To these fiscal year 2025 figures, we compare state personal income data from the prior calendar year, in this case 2024, to calculate tax burdens.
Overall state and local tax collections in 2025 rose 5.0%, making it one of the largest annual increases in the last two decades. That was due in part to the largest percentage increase in local tax revenue in two decades. However, the state and local tax burden held steady because statewide personal income also grew by 5.0% in 2025.
However, the experience of individual taxpayers will vary. The average tax burden may be felt differently depending on where in the state a taxpayer lives, his or her level and source of income, type of business, and other factors.