Madison Sales Tax Guide 2025 (Wisconsin)
Navigating Madison sales tax is essential for businesses to apply accurate rates and ensure compliance with local taxes and state regulations. Businesses selling tangible personal property must complete sales tax registration, obtain a sales tax permit, and stay informed about tax changes to properly file sales tax returns and maximize revenue. This guide provides key insights to help businesses handle sales tax rates, exemptions, use tax, and manage sales tax rates to remain compliant with Wisconsin sales tax legislation while leveraging the streamlined sales tax program and resources from the Department of Revenue for simplified compliance.
Madison WI Sales Tax Rate (Wisconsin)
In Madison, Wisconsin, the combined sales tax rate is 5.5%, comprising a 5.0% state sales tax and a 0.5% Dane County tax; there is no additional city tax.
| Jurisdiction | Sales tax rate |
|---|---|
| State Tax | 5.00% |
| County Tax | 0.50% |
| City Tax | 0.00% |
| Special Tax | 0.00% |
| Total Combined Tax | 5.50% |
Sales Tax Calculator Madison WI
A sales tax calculator is a useful tool for businesses and consumers in Madison, WI, to determine the correct tax amount on taxable purchases. Using a tax rate lookup, retailers can ensure they apply the correct state, county, and city tax rates while staying compliant with Wisconsin tax laws. Below is an example demonstrating how sales tax is calculated in Madison.
Scenario: Let’s say a retailer sells a $900 item in Madison, WI. Now, let’s calculate the tax amounts:
- State Tax: $900 × 5.00% = $45.00
- County Tax: $900 × 0.50% = $4.50
- City Tax: $900 × 0.00% = $0.00
- Special Tax: $900 × 0.00% = $0.00
- Total Combined Tax: $45.00 + $4.50 + $0.00 + $0.00 = $49.50
Final Total Price: $900 + $49.50 = $949.50
Thus, the total amount the customer pays is $949.50 ($900 + $49.50 in tax). By using a sales tax calculator, retailers in Madison can ensure they apply the correct 5.50% sales tax rate for accurate pricing and compliance with Wisconsin tax laws.
FAQs
What is the sales tax in Madison, WI?
The sales tax in Madison, WI, is 5.50%, which includes a 5.00% state sales tax and a 0.50% Dane County tax. There is no additional city or special district tax applied.
How much is sales tax in Madison, WI?
The total sales tax in Madison, WI, is 5.50%, meaning businesses must collect this rate on taxable goods and services. Consumers and retailers can use a tax rate lookup tool to verify the latest rate.
What is Madison, Wisconsin’s state sales tax rate?
The state sales tax rate in Madison, WI, is 5.00%, which applies across all cities in Wisconsin. Madison also has an additional 0.50% county tax, bringing the total sales tax rate to 5.50%.
Who Needs to Collect Sales Tax in Madison?
Sales tax collection in Madison is required for businesses that meet the following criteria:
1. Physical Presence: Businesses with a store, office, warehouse, or employee in Madison.
2. Economic Nexus: Out-of-state businesses exceeding $100,000 in Wisconsin.
Not sure if your business meets these criteria? Kintsugi’s Nexus Analysis Tool can help you determine your sales tax obligations.
What Is Taxable in Madison?
In Madison, Wisconsin, sales tax applies to:
1. Tangible personal property (e.g., electronics, clothing, furniture).
2. Certain services.
There are also exemptions for items like Grocery Food, Machinery, Raw Materials, Utilities & Fuel, Medical Devices, Newspapers, Periodicals, General Occasional Sales, Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts, General Trade-Ins, Food Vending Machine. Ensure you check with your state’s tax authority or consult Kintsugi for clarity.
How to File Sales Tax in Madison
Here’s a step-by-step guide for filing your sales tax returns:
1. Register Your Business: Get a sales tax permit through the https://www.revenue.wi.gov/Pages/SalesAndUse/Home.aspx.
2. Collect Sales Tax: Accurately calculate sales tax on taxable transactions.
3. File and Pay: Submit sales tax returns through https://www.revenue.wi.gov/Pages/SalesAndUse/Home.aspx by the [state-specific deadline]—monthly, quarterly, or annually depending on your sales volume.
Kintsugi’s Automated Filing Service streamlines the process, ensuring accuracy and timeliness.
Common Challenges in Sales Tax Compliance
Businesses in Madison often face these issues:
1. Tracking tax rate changes for city, county, and special districts.
2. Managing exemptions and resale certificates.
3. Reconciling returns for accurate filing.
Kintsugi’s AI-Driven Compliance Solution takes the guesswork out of sales tax, handling rate calculations, exemption management, and filing across all jurisdictions.
Why Choose Kintsugi for Sales Tax Compliance?
Kintsugi is more than a software solution—we’re your trusted partner in sales tax compliance. Here’s how we help:
1. Real-Time Rate Calculation across billing, payments, and e-commerce platforms.
2. Nexus Tracking to identify where you need to register and collect tax.
3. Automated Filing to save time and reduce errors.
4. Audit Support to give you peace of mind.
A direct-to-consumer brand, recovered over $200K in overpaid sales tax within their first month of switching to Kintsugi. Your business could be next.
Ready to Simplify Sales Tax Compliance in Madison?
With Kintsugi, managing sales tax is effortless. Whether you're just starting out or scaling across multiple states, we have the tools to help you stay compliant and grow with confidence.
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Find Sales Tax Information for Other Cities in Wisconsin
Looking for sales tax rates and compliance details for other cities in Wisconsin? Check out our comprehensive table of sales tax information for cities across the state in the table below
| City | Sales tax rate |
|---|---|
| Bagley | 5.50% |
| Beetown | 5.50% |
| Benton | 5.50% |
| Bloomington | 5.50% |
| Boscobel | 5.50% |
| Cassville | 5.50% |
| Cuba City | 5.50% |
| Dickeyville | 5.50% |
| Fennimore | 5.50% |
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