Wisconsin Sales Tax Guide 2025: Rules, Rates, Compliance

Simplify Wisconsin sales tax compliance with this guide, offering insights on rates, exemptions, and filing requirements. Keep your business in good standing with state regulations.

Wisconsin Sales Tax

Sales tax in Wisconsin was introduced in 1961, establishing a statewide tax system to fund public services. Under Wisconsin sales tax law, a 5% tax applies to most goods and services, with additional Wisconsin sales and use tax obligations for out-of-state purchases. The Wisconsin Department of Revenue oversees compliance and enforcement.

Wisconsin Sales Tax Rate

Jurisdiction	Sales tax rate
State tax	5.0%
Local tax	0.0%-0.6%
Combined Tax	5.0% - 5.6%

Learn more and check out the city-based tax rates in Wisconsin.

Wisconsin Sales Tax Calculator

A Wisconsin sales tax calculator is a tool that helps retailers calculate the total sales tax owed on taxable items based on the state’s 5% sales tax rate and any applicable local sales taxes (usually 0.5%). This ensures accurate pricing for customers and compliance with Wisconsin sales tax law.

Scenario: A retailer in Dane County (which has an additional 0.5% local sales tax) sells a taxable item for $100.

1. Calculate the State Sales Tax:
   1. $100 × 5% = $5.00
2. Calculate the Local Sales Tax: 2. $100 × 0.5% = $0.50
3. Add the Taxes Together: 3. $5.00 (state tax) + $0.50 (local tax) = $5.50
4. Total Cost to Customer: 4. $100 (item price) + $5.50 (total sales tax) = $105.50

Using a sales tax calculator simplifies this process by automating the calculations, ensuring retailers charge the correct Wisconsin sales and use tax to customers.

FAQs on Sales Tax

What is the sales tax rate in Wisconsin?

The state sales tax rate in Wisconsin is 5%, with an additional 0.5% local sales tax in certain counties.

How to calculate Wisconsin sales tax?

Multiply the item’s price by the state sales tax rate of 5% and add any applicable local sales tax, typically 0.5%, based on the sale location.

What is the sales tax in Milwaukee?

The total sales tax in Milwaukee is 5.5%, which includes the state’s 5% tax and the county’s 0.5% local tax.

Sales Tax Nexus in Wisconsin

Type of Nexus	Threshold
Physical presence	Any physical presence
Economic nexus	$100,000 in gross sales
Marketplace nexus	$100,000 in gross sales

FAQs on Sales Tax Nexus

What is the sales tax nexus in Wisconsin?

Sales tax nexus in Wisconsin refers to the connection between a business and the state that requires the business to collect and remit sales tax on taxable transactions.

How to file for sales tax nexus in Joliet, Wisconsin?

Businesses can register for sales tax nexus by creating an account with the Wisconsin Department of Revenue and submitting the required registration forms through their online portal.

What constitutes sales tax nexus in Wisconsin?

Sales tax nexus in Wisconsin can be established through a physical presence, such as an office or warehouse, or by meeting economic thresholds like $100,000 in sales or 200 transactions annually.

Wisconsin Sales Tax Exemptions​

Wisconsin provides various sales tax exemptions to reduce the tax burden for specific transactions, entities, and industries. Common exemptions include items purchased for resale, manufacturing equipment, agricultural supplies, and certain nonprofit or government purchases.

These exemptions help businesses avoid double taxation and support essential activities, such as production and charitable operations. To claim these benefits, businesses must comply with Wisconsin sales tax law and provide proper documentation, such as exemption certificates, during transactions.

FAQs on Sales Tax Exemptions

What’s a Wisconsin sales tax exemption certificate?

A Wisconsin sales tax exemption certificate is a document businesses use to claim exemption from paying sales tax on qualifying purchases, such as goods for resale or nonprofit use.

What are the things I need to know about Wisconsin sales tax exemption?

Wisconsin offers exemptions for items like manufacturing equipment, agricultural supplies, and nonprofit purchases, and businesses must provide proper documentation to claim these exemptions.

Is SaaS taxable in Wisconsin?

Yes, SaaS (Software as a Service) is generally taxable in Wisconsin as it is considered a taxable service.

Does Wisconsin have sales tax on clothing?

Yes, most clothing is subject to Wisconsin’s 5% sales tax, along with any applicable local taxes. Learn more about Wisconsin sales tax on clothing.

What is the Wisconsin sales tax exemption?

The Wisconsin sales tax exemption allows certain entities or transactions to avoid sales tax, such as items for resale, nonprofit purchases, or specific industry-related goods. Learn more about Wisconsin sales tax exemption.

What services are exempt from sales tax in Wisconsin?

Services such as medical, legal, and educational services are generally exempt from sales tax in Wisconsin.

Are nonprofits exempt from sales tax in Wisconsin?

Yes, qualifying nonprofits in Wisconsin are exempt from sales tax on purchases made for their organizational purposes.

What items are exempt from Wisconsin sales tax?

Exempt items include unprepared groceries, prescription medications, certain medical equipment, and goods purchased for resale.

What sales are exempt from sales tax in Wisconsin?

Sales exempt from tax include those to nonprofits, government entities, resale transactions, and interstate commerce sales.

What is the clothing tax rate in Wisconsin?

The clothing tax rate in Wisconsin is 5%, plus an additional 0.5% in counties with a local tax.

What's the Wisconsin Sales Tax Registration Process?

1. Determine if Your Business Needs to Register. Evaluate whether your business has nexus in Wisconsin, which may include a physical presence, economic nexus (over $100,000 in sales or 200 transactions annually), or out-of-state sales to Wisconsin customers.

2. Gather Required Information. Prepare the necessary details for registration, including:

• Business name and address
• Federal Employer Identification Number (FEIN)
• Social Security Number (SSN) for sole proprietors
• Business structure (LLC, sole proprietorship, corporation, etc.)
• Estimated sales revenue in Wisconsin

3. Visit the Wisconsin Department of Revenue Website. Go to the Wisconsin Department of Revenue's official website and access the online One Stop Business Registration portal or the My Tax Account system.

4. Create an Account. If you are a new user, create an account in the My Tax Account system by providing your email address and other identifying information.

5. Complete the Sales Tax Registration Form. Fill out the sales and use tax registration form by providing your business details, nexus status, and expected sales activities in Wisconsin. Ensure all information is accurate to avoid processing delays.

6. Submit the Application. Submit your completed application through the online portal. If needed, you can also submit forms via mail, although online registration is faster and more efficient.

7. Receive Your Sales Tax Permit. Once your application is processed, you will receive your Wisconsin Sales Tax Permit, which allows your business to legally collect and remit sales tax. The permit will include your Wisconsin Tax Account Number.

8. Set Up Your Tax Collection System. Implement systems to charge the correct sales tax rate, including the state’s 5% base rate and any applicable local taxes.

9. Understand Filing Requirements. Review your assigned filing frequency (monthly, quarterly, or annually) based on your anticipated sales volume. Ensure you meet these deadlines to avoid penalties.

10. Maintain Compliance. Keep detailed records of all sales transactions, exemption certificates, and filings to ensure smooth compliance with Wisconsin sales tax laws.

Wisconsin Sales Tax Filing

Filing Wisconsin sales tax involves reporting and remitting the sales and use tax your business has collected to the Wisconsin Department of Revenue. Businesses must file their sales tax returns based on their assigned frequency—monthly, quarterly, or annually—depending on their sales volume.

Accurate records of taxable and exempt sales, as well as exemption certificates, are required to complete the process. This ensures compliance with Wisconsin sales tax laws, and penalties can be avoided with timely and accurate filings.

What are the Wisconsin Sales filing requirements?

Wisconsin requires businesses to file sales tax returns by reporting taxable and exempt sales, remitting collected sales and use tax, and maintaining accurate records through the Wisconsin Department of Revenue's My Tax Account portal.

How do I file sales tax in Wisconsin?

You can file Wisconsin sales tax returns online through the My Tax Account portal, where you report sales, exemptions, and remit the tax due.

How often do I need to file sales tax in Wisconsin?

Filing frequency (monthly, quarterly, or annually) depends on your business's sales volume as determined by the Wisconsin Department of Revenue.

Can Wisconsin state sales taxes be deducted when filing taxes?

Yes, Wisconsin state sales taxes can be deducted on federal tax returns if you itemize deductions, but only for taxes paid on personal purchases, not for business-related sales tax collections.

What is Wisconsin early monthly sales tax filing?

Wisconsin requires early monthly filers, typically large businesses, to prepay estimated sales tax for the following month if their annual tax liability exceeds $3,600.

Wisconsin Sales Tax Due Date​

Filing Frequency	Due Date
Monthly	Last day of the following month (Ex. Due date for January is February 28)
Quarterly	Last day of the month following the quarter’s end. (Ex. Due date for Q1 (January 1 – March 31) is April 30)
Annually	January 31 of the following year

What day is Wisconsin sales tax due?

Wisconsin sales tax is typically due on the last day of the month following the reporting period, unless otherwise specified by the Wisconsin Department of Revenue.

What is the penalty for filing sales tax late in Wisconsin?

Late filings in Wisconsin incur a penalty of 5% of the unpaid tax per month, up to a maximum of 25%, plus interest on the unpaid balance.

Wisconsin Sales Tax Revenue Service

For any concerns about Wisconsin sales tax registration, filing or general inquiries, you can reach out to them through the following:

• Phone: (608) 266-2776
• Fax: (608) 267-1030
• Email:  DORSalesandUse@wisconsin.gov

With this guide, managing Wisconsin sales tax is easier than ever. However if you want to focus on your business you can let Kintsugi handle the details—sign up or book a demo  now.