Wisconsin Sales Tax Guide 2025: Rules, Rates, Compliance

Don’t let cheese curds and checkouts turn into tax troubles. Whether you’re a solo seller or scaling fast, this 2025 Wisconsin Sales Tax Guide covers everything you need to stay compliant, avoid penalties, and keep your ecommerce business moving forward.

Wisconsin Sales Tax Rates in 2025

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

In Wisconsin, the state sales tax rate is 5%. However, counties and only the city of Milwaukee can impose additional sales taxes. This leads to variations in the total tax rate across different areas.

Most counties in Wisconsin have adopted a 0.5% county sales tax, bringing the combined rate to 5.5%. Locations in Milwaukee County (outside the City of Milwaukee) like West Allis are 5.9% due to the county’s 0.9% rate.

The city of Milwaukee is the only municipality that imposes a 2% city tax. The additional 0.9% county tax brings the total sales tax rate in Milwaukee City to 7.9%, the highest in the state.

The Wisconsin Department of Revenue oversees compliance and enforcement in the state.

Wisconsin Sales Tax Calculations

Calculating sales tax in Wisconsin involves applying the state rate and any applicable local rates, usually county or special district taxes, based on the location where the buyer takes possession of the goods or services. Here’s how it works:

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) 4. Total cost = $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. Calculate your sales tax using Kintsugi’s sales tax calculator.

Sales Tax Nexus in Wisconsin

Sales tax nexus is a legal connection between a business and the state of Wisconsin. When a business triggers nexus, it is obligated to collect and remit sales tax on taxable sales made to customers in the state.

There are two types of nexus in Wisconsin – physical and economic.

Physical Nexus

You have a physical nexus in Wisconsin if your business has a tangible presence in the state and when any of the following is true to you:

• You own an office or place of business
• You own or lease property or office space in Wisconsin
• You have employees, contractors, or sales agents working in the state
• You store inventory in a Wisconsin warehouse or fulfillment center (including through third-party logistics)

Economic Nexus

Wisconsin enforces economic nexus laws under the post-Wayfair tax ruling. You establish an economic nexus in Wisconsin if, during the previous or current calendar year, you:

• Exceed $100,000 in gross sales in Wisconsin, and
• Sell taxable products or services to Wisconsin customers

In February 2021, Wisconsin removed the transaction threshold. Prior to the change, remote sellers who made 200 transactions were also required to collect and remit sales tax in the state.

Wisconsin Sales Tax Exemptions in 2025

In Wisconsin, certain goods and services are exempt from sales tax. These exemptions are designed to reduce the tax burden on essential items and to support specific industries and organizations.

Here’s an overview of key sales tax exemptions in Wisconsin.

What is a Wisconsin Sales Tax Exemption Certificate?

A Wisconsin Sales Tax Exemption Certificate (Form S-211) is a document that allows a buyer to purchase certain goods or services without paying sales tax. This can be used as long as the purchase qualifies under specific exemptions recognized by the Wisconsin Department of Revenue.

The form is used by:

• Retailers buying goods for resale
• Manufacturers purchasing machinery, equipment, or raw materials
• Farmers buying exempt agricultural items
• Nonprofit organizations, such as schools, churches, and charities, buying items for exempt use
• Government agencies making tax-exempt purchases
• Buyers from other states making sales tax–exempt purchases under specific conditions

The buyer must present a properly completed certificate to the seller at the time of purchase to validate the exemption. The sales tax exemption certificate can be used for single or recurring purchases.

The seller must keep a copy as proof during audits. Misuse of an exemption certificate may result in penalties or back taxes.

Valid Reasons for Sales Tax Exemption in Wisconsin

In Wisconsin, valid reasons for claiming a sales tax exemption are based on the purpose of the purchase and the type of buyer. These exemptions must be properly documented using the Wisconsin Sales and Use Tax Exemption Certificate (Form S-211).

The most common and valid reasons for exemptions are the following:

Resale. Buying goods to resell to others without using them first.

Manufacturing. Purchasing machinery, equipment, or raw materials directly used in manufacturing or processing tangible personal property.

Farming. Equipment, supplies, and certain services used exclusively in farming activities are exempt.

Nonprofit Organizations. Religious, charitable, educational, and certain other nonprofit entities may purchase tax-free items for use in their exempt mission. The user must be a certified exempt organization.

Government Purchases. Sales to the federal government and qualifying Wisconsin state and local government units are exempt.

Prescription Drugs and Durable Medical Equipment. Prescription medications, insulin, and some medical equipment prescribed by a physician are exempt.

Exempt Occasional Sales. Sales made by sellers who are not engaged in regular business activity (e.g., a one-time fundraiser or garage sale).

Interstate or Foreign Commerce. Items shipped directly out of state or to another country may be exempt.

Exempt Organizations (Tribal or Diplomatic). Sales to recognized Native American tribes or qualifying foreign diplomats may qualify for exemption.

Premier Resort Area Sales Exemption. Certain specific exemptions apply to businesses or buyers operating in designated premier resort areas.

Sales Tax Registration, Filing, & Remittance

Getting started with sales tax means more than just collecting it. This section breaks down the three key steps: registration, filing, and remittance to help you do compliance right.

Wisconsin Sales Tax Registration

You need to register to get Wisconsin sales tax permits.

How do I get a Wisconsin sales tax permit?

To obtain a Wisconsin sales tax permit, you can apply online through the Wisconsin Department of Revenue’s Business Tax Registration portal. You’ll need to provide your business details, including your Federal Employer Identification Number (FEIN), business address, and information about your business activities.

Once your application is processed, you’ll receive your permit, allowing you to collect and remit sales tax in Wisconsin.

Here’s a step-by-step guide for registration to obtain a Wisconsin sales tax permit.

Step 1: Determine If You Need a Seller’s Permit

You must register if you:

• Sell taxable goods or services in Wisconsin
• Have a physical presence (e.g., office, employees, inventory) in Wisconsin
• Are a remote seller exceeding $100,000 in annual sales into Wisconsin

Note: If all your sales are exempt or handled by a marketplace provider that collects tax for you, registration may not be required.

Step 2: Gather Required Information

Before starting your application, have the following details ready:

• Federal Employer Identification Number (FEIN)
• Legal business name and structure (e.g., LLC, sole proprietorship)
• Business address and contact information
• Start date of business activities in Wisconsin
• Estimated monthly sales
• North American Industry Classification System (NAICS) code for the products you sell

Step 3: Apply Online via My Tax Account

The fastest way to register is through Wisconsin’s My Tax Account portal:

• Visit the Business Tax Registration portal
• Create an account or log in
• Complete the application by providing the gathered information

A $20 registration fee will be collected from you. The Wisconsin Department of Revenue automatically renew the seller’s permit after every two years, unless you inform the state that you are not operating there anymore.

Step 4: Receive Your Seller’s Permit

Online applications are typically processed within 2 business days. You’ll receive your Wisconsin Seller’s Permit, allowing you to collect and remit sales tax.

Wisconsin Sales Tax Filing

Filing your Wisconsin sales tax return is quick and straightforward. Just follow this guide.

Step 1: Log in to My Tax Account

Go to Wisconsin My Tax Account. Log in using your username and password. If you don’t have an account, click “Create New Username” to register.

Step 2: Select Your Sales Tax Account

From the homepage dashboard, find your Sales and Use Tax account. Click on the period you want to file (e.g., Monthly, Quarterly, or Annual return).

Step 3: Enter Gross Sales

Enter your total gross sales for the filing period (including taxable and nontaxable sales). Do not deduct exempt sales yet because there’s a separate field for that.

Step 4: Enter Deductions

Report non-taxable or exempt sales (e.g., resale, government, nonprofit, out-of-state). The system will automatically calculate your taxable sales based on your deductions.

Step 5: Report Local (County) Taxes

If you made sales in counties with a local tax (e.g., Milwaukee, Dane), enter them in the appropriate section. The system may prompt you to allocate sales based on ZIP codes or county names.

Step 6: Review and Submit

Review your entries and confirm they are correct. If you are sure of the details and nothing is missed, submit your return electronically through the portal.

Step 7: Make a Payment

After submitting, you’ll be given the option to pay your tax due. You can pay via ACH debit, credit card, or bank transfer. Make sure to submit your payment by the due date to avoid penalties.

Wisconsin Filing Frequency & Due Date

In Wisconsin, sales tax filing frequency is determined by your total tax liability. The Wisconsin Department of Revenue (DOR) reviews this annually and notifies businesses of any changes effective January 1 of the following year.

Note: If a due date falls on a weekend or legal holiday, it automatically moves to the next business day.

FAQs

Does Wisconsin have sales tax?

Yes, Wisconsin has a state sales tax of 5%. Additional local taxes can range from 0% to 0.6%.

Are taxes high in Wisconsin?

Wisconsin’s sales tax is moderate compared to other states, but property taxes tend to be higher than average.

What does Wisconsin sales tax apply to?

Sales tax applies to most tangible personal property, some digital goods, and certain services.

Is there sales tax on groceries in Wisconsin?

Most unprepared food and groceries are exempt, but prepared foods and soda are taxable.

What is not taxed in Wisconsin?

Exemptions include most groceries, prescription drugs, resale items, manufacturing equipment, and certain nonprofit purchases.

What is sales tax on clothing in Wisconsin?

Clothing is generally taxable at the combined state and county rate, typically 5.5% in most areas.

How to pay Wisconsin sales tax?

You can pay online through the Wisconsin My Tax Account portal after filing your sales tax return.

1. Do you pay sales tax on a car in Wisconsin?

Yes, cars are subject to state and local sales tax, collected when the vehicle is titled or registered.

Is software taxable in Wisconsin?

Computer software, except custom software, is considered tangible personal property in Wisconsin and is subject to sales tax. This includes electronically delivered and remotely accessed (SaaS) software.

Does Wisconsin have a sales tax holiday?

No, as of now, Wisconsin does not offer a sales tax holiday.

Does Wisconsin charge sales tax on shipping?

Yes, shipping and handling charges are taxable if the sale itself is taxable.

Does Wisconsin require use tax reporting?

Yes, individuals and businesses must report and pay use tax on taxable purchases made without paying Wisconsin sales tax.

Additional Resources

For the most accurate and up-to-date information on Wisconsin sales tax, visit the official Wisconsin Department of Revenue website or contact them directly by phone. These resources are your go-to for questions, forms, and guidance straight from the state.

Website: Wisconsin Department of Revenue

Phone: (608) 266-2772