Racine Sales Tax Guide 2025 (Wisconsin)
Navigating sales tax compliance and the sales tax registration process in Racine, Wisconsin, can be challenging for businesses of all sizes. Understanding the local regulations, Wisconsin sales tax rates, use tax obligations, and filing requirements is critical to staying compliant and avoiding penalties. At Kintsugi, we simplify business sales tax compliance, including seamless integrations with your financial systems, helping you focus on growth without the headache of managing complex tax rules. In this guide, we'll break down everything you need to know about sales tax in Racine for 2025.
Racine Sales Tax Rate (Wisconsin)
As of February 2025, Racine, Wisconsin, imposes a 5.0% state sales tax. Effective April 1, 2025, Racine County will implement an additional 0.5% county sales tax, bringing the total to 5.5%. Wisconsin's state sales tax was first enacted in 1962.
| Jurisdiction | Sales tax rate |
|---|---|
| State Tax | 5.00% |
| County Tax | 0.50% |
| City Tax | 0.00% |
| Special Tax | 0.00% |
| Combined Tax | 5.50% |
(Note: Sales tax rates are subject to change. Check the Wisconsin Department of Revenue’s website for the latest updates.)
Racine Sales Tax Calculator
Imagine you run a home decor shop in Racine and are selling a designer lamp for $350 and you need to calculate the correct sales tax on your products.
Current Sales Tax Rate in Racine, WI
Starting April 1, 2025, the total Racine sales and use tax rate will be:
- Wisconsin State Sales Tax: 5%
- Racine County Sales Tax: 0.5%
- Total Sales Tax Rate: 5.5%
Step 1: Convert the Sales Tax Rate to Decimal Form
To calculate the tax, convert the percentage to a decimal:
5.5% = 0.055 (just divide by 100).
Step 2: Multiply the Price by the Sales Tax Rate
Multiply the lamp's price by the decimal sales tax rate:
$350 × 0.055 = $19.25
This $19.25 is the sales tax your customer owes.
Step 3: Add the Sales Tax to the Original Price
Add the calculated sales tax to the product’s original price:
$350 + $19.25 = $369.25
Final Price the Customer Pays: $369.25
Key Reminders for Racine Business Owners:
- Stay updated on local tax changes (like Racine’s new 0.5% tax starting April 2025).
- Use reliable point-of-sale systems to automatically calculate sales tax.
- If you sell online, different tax rules may apply for out-of-state customers.
FAQ on Sales Tax in Racine WI
Does Racine County Have Sales Tax?
Yes, Racine County will impose a 0.5% county sales tax starting April 1, 2025, in addition to the state sales tax.
What is the Sales Tax Rate for Racine Wisconsin?
The total sales tax rate in Racine, WI, will be 5.5% (5% state tax + 0.5% county tax) effective April 1, 2025.
What is the Sales Tax for Racine County WI?
Racine County will apply a 0.5% sales tax beginning April 1, 2025, on top of Wisconsin’s 5% state sales tax, totaling 5.5%.
Racine Sales Tax Filing Steps
Who Needs to Collect Sales Tax in Racine?
Sales tax collection in Racine is required for businesses that meet the following criteria:
1. Physical Presence: Businesses with a store, office, warehouse, or employee in Racine.
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 Racine?
In Racine, 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 Racine
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 Racine 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 Racine?
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
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