Wisconsin's 5% state rate plus typically 0.5% county taxes creates a low combined rate around 5.5% in most of the state. Milwaukee added a 2% city sales tax in 2024, making it an outlier at 5.75% combined. Wisconsin exempts groceries and prescriptions but taxes clothing and most consumer goods. Wisconsin has no sales tax holidays.
Wisconsin sales tax overview
| Component | 2026 Rate |
|---|---|
| State sales tax | 5.00% |
| Avg local add-on | 0.440% |
| Avg combined | 5.44% |
| Maximum combined | 5.75% |
Note: Milwaukee implemented its 2% city sales tax in 2024.
Wisconsin sales tax by city
Combined state + local sales tax rates for major cities in Wisconsin:
| City | Combined Rate |
|---|---|
| Milwaukee | 5.75% |
| Madison | 5.50% |
| Green Bay | 5.50% |
What's exempt in Wisconsin
Groceries
Exempt from Wisconsin state sales tax. Local jurisdictions may still tax.
Clothing & footwear
Taxed at standard rate.
Prescription drugs
Exempt from sales tax (typical across most states).
How Wisconsin sales tax is calculated
Sales tax in Wisconsin is calculated by multiplying the pre-tax purchase price by the applicable combined rate. The formula is simple:
Sales Tax = Purchase Price × 5.44% (avg combined)
Total = Purchase Price + Sales Tax
The exact rate depends on where the purchase occurs — the state base rate (5.00%) plus any local city or county add-ons. Wisconsin allows local jurisdictions to add their own taxes, so the rate varies by location.
Quick calculation examples at average rate 5.44%:
$100 item
$5.44 tax
$105.44 total
$250 item
$13.60 tax
$263.60 total
$500 item
$27.20 tax
$527.20 total
$1,000 item
$54.40 tax
$1054.40 total
Additional tax-free items in Wisconsin
Beyond the standard exemptions, Wisconsin also provides sales tax relief on these categories:
Exemptions may have conditions. Always verify with the Wisconsin Department of Revenue for complete rules.
Wisconsin sales tax in context: rates, history, and neighbors
Wisconsin's 5% state sales tax (since 1982 — among the longest-stable rates in the US) plus minor county/city add-ons gives an average combined rate of 5.44% — among the lowest in the Midwest. Madison 5.5%, Green Bay 5.5%, Milwaukee 5.75% (city tax added 2024 — first major rate change in years), Racine 5.5%, Appleton 5.5%. Wisconsin exempts groceries and prescription drugs. WI takes a narrow approach to services taxation — most professional/personal services exempt. Compared to neighbors: Illinois (~8.82% Chicago combined), Iowa (~6.94%), Minnesota (~8.05%), Michigan (6%) — Wisconsin's combined rate is the lowest of any major Midwest state. WI is a Streamlined Sales Tax (SST) Agreement member. Milwaukee implementing its 2% city sales tax in 2024 was a notable change from Wisconsin's traditional simplicity.
Online shopping & Wisconsin sales tax
Wisconsin requires economic nexus — remote sellers with $100,000+ or 200+ Wisconsin transactions must collect Wisconsin sales tax. Wisconsin is a member of the Streamlined Sales Tax (SST) Agreement, making multi-state compliance simpler. Marketplace facilitators collect Wisconsin tax on all third-party platform sales.
Use Tax reminder: If you purchase taxable goods online from a seller who does NOT collect Wisconsin sales tax, you technically owe Use Tax — the same rate as sales tax, reportable on your Wisconsin state tax return. Use Tax enforcement on consumers is rare but the obligation exists for significant purchases.
How much Wisconsin sales tax on common purchases?
Using Wisconsin's average combined rate of 5.44%:
| Purchase | Price | Sales Tax | Total |
|---|---|---|---|
| Grocery cart | $150 | Exempt | $150.00 |
| Clothing / shoes | $120 | $6.53 | $126.53 |
| Prescription drug | $80 | Exempt | $80.00 |
| Smartphone | $999 | $54.35 | $1053.35 |
| Laptop / tablet | $1,299 | $70.67 | $1369.67 |
| New car ($35,000) | $35,000 | $1904.00 | $36904.00 |
| Home appliance | $1,500 | $81.60 | $1581.60 |
| Restaurant meal | $60 | $3.26 | $63.26 |
Based on Wisconsin's average combined rate of 5.44%. Exact tax depends on city/county. Use our calculator above for specific locations and amounts.
Collecting sales tax in Wisconsin: business guide
If you sell goods or taxable services to Wisconsin customers, here's what you need to know:
- Registration: Register for a Wisconsin sales tax permit/license through the Wisconsin Department of Revenue before making your first taxable sale. Most states process registrations online within a few days.
- Economic nexus (online sellers): If you have $100,000+ in Wisconsin annual sales or 200+ transactions, you must collect Wisconsin sales tax even without a physical presence in the state — per South Dakota v. Wayfair (2018). You must collect both state (5.00%) and applicable local rates.
- Destination vs origin sourcing: Wisconsin uses destination-based sourcing for most sales — the tax rate where the buyer receives the goods applies. Always use the customer's delivery address to determine the rate.
- Filing frequency: Frequency depends on your Wisconsin sales volume — monthly for high-volume sellers, quarterly or annually for low-volume sellers. Check with the Wisconsin Department of Revenue for your specific filing schedule.
- Marketplace sales: If you sell through Amazon, Etsy, eBay, or similar platforms, the marketplace is required to collect and remit Wisconsin sales tax on your behalf — you don't need to collect it separately on marketplace transactions.
- Resale certificates: Businesses purchasing goods for resale can provide a Wisconsin resale certificate to suppliers to avoid paying sales tax on wholesale purchases. Keep copies of all resale certificates for audits.
Streamlined Sales Tax (SST): Wisconsin is a full member of the Streamlined Sales Tax (SST) Agreement, which simplifies multi-state sales tax registration and compliance through a single registration portal (streamlinedsalestax.org).
Wisconsin-specific business compliance details
Wisconsin businesses register with the WI Department of Revenue at revenue.wi.gov for a Wisconsin Seller's Permit. Filing frequency: monthly for $1,200+/year tax, quarterly for $300-$1,200, annually for under $300. Out-of-state sellers with $100,000+ in WI sales (or 200+ transactions) must collect WI tax (economic nexus, since October 2018). WI is a Streamlined Sales Tax (SST) Agreement member. Marketplace facilitators collect WI tax. WI uses destination-based sourcing. WI's narrow services taxation makes it relatively easy for service businesses (consultants, lawyers, accountants, hairstylists) — minimal sales tax compliance for them. Milwaukee's new 2% city tax (2024) requires city-aware POS configuration. Penalties: 5% of unpaid tax + interest.
Wisconsin sales tax frequently asked questions
What is the sales tax rate in Milwaukee, Wisconsin after the 2024 city tax?
Milwaukee implemented a 2% city sales tax in January 2024, pushing the combined rate to 5.75% (5% state + 0.5% Milwaukee County + 0.25% baseball stadium district + smaller levies = approximately 5.75%). Before 2024, Milwaukee's rate was similar to the rest of the state at around 5.5%. The new city tax is funding pension obligations and city services facing fiscal strain.
How does Wisconsin's sales tax compare to neighboring states?
Wisconsin's 5.5% average combined rate is among the lowest in the Midwest — Illinois averages 8.82%, Minnesota averages 8.05%, Michigan is 6%, Indiana is 7%. For major purchases, Wisconsin's rate advantage is meaningful: a $10,000 appliance in Wisconsin (~$550 tax) vs Chicago ($1,025 tax). Many border residents in Illinois and Iowa shop in Wisconsin specifically for the lower sales tax rate.
Does Wisconsin tax services like haircuts or car repairs?
Most services in Wisconsin are NOT taxable — Wisconsin takes a narrow approach to services taxation. Specifically exempt: professional services (legal, medical, accounting), personal services (haircuts, salons), repair services, and most business services. Taxable services are more limited: telecommunications, cable TV, digital goods, and certain lodging-adjacent services. This is a consumer-friendly approach compared to states like Iowa and Kentucky that have expanded service taxation.