LRB-1944/1
JK:amn
2021 - 2022 LEGISLATURE
February 18, 2021 - Introduced by Representatives Katsma, Wittke and Macco,
cosponsored by Senator Kooyenga. Referred to Committee on Ways and
Means.
AB78,1,4 1An Act to repeal 71.06 (2e) (a) and 71.64 (9) (b) 1. and 2.; to renumber and
2amend
71.64 (9) (b) (intro.); to amend 71.06 (2e) (b); and to repeal and
3recreate
71.06 (1q), 71.06 (2) (i), 71.06 (2) (j) and 71.06 (2s) of the statutes;
4relating to: individual income tax brackets and rates.
Analysis by the Legislative Reference Bureau
This bill reduces the number of individual income tax brackets from four to
three. Under current law, there are four income tax brackets for single individuals,
certain fiduciaries, heads of households, and married persons. The brackets are
indexed for inflation.
For single individuals, certain fiduciaries, and heads of households, the tax rate
is 3.54 percent of taxable income from zero to $11,970; 4.65 percent of taxable income
for income exceeding $11,970, but not exceeding $23,930; 6.27 percent of taxable
income exceeding $23,930, but not exceeding $263,480; and 7.65 percent of taxable
income exceeding $263,480.
For married individuals filing jointly, the tax rate is 3.54 percent of taxable
income from zero to $15,960; 4.65 percent of taxable income for income exceeding
$15,960, but not exceeding $31,910; 6.27 percent of taxable income for income
exceeding $31,910, but not exceeding $351,310; and 7.65 percent of taxable income
exceeding $351,310.
For married individuals filing separately, the tax rate is 3.54 percent of taxable
income from zero to $7,980; 4.65 percent of taxable income for income exceeding
$7,980, but not exceeding $15,960; 6.27 percent of taxable income for income

exceeding $15,960, but not exceeding $175,660; and 7.65 percent of taxable income
exceeding $175,660.
Under the bill, the individual income tax rates and brackets are as follows:
1. For single individuals, certain fiduciaries, and heads of households, the tax
rate is 3.54 percent of taxable income from zero to $23,930; 6.27 percent of taxable
income exceeding $23,930, but not exceeding $263,480; and 7.65 percent of taxable
income exceeding $263,480.
2. For married individuals filing jointly, the tax rate is 3.54 percent of taxable
income from zero to $31,910; 6.27 percent of taxable income for income exceeding
$31,910, but not exceeding $351,310; and 7.65 percent of taxable income exceeding
$351,310.
3. For married individuals filing separately, the tax rate is 3.54 percent of
taxable income from zero to $15,960; 6.27 percent of taxable income for income
exceeding $15,960, but not exceeding $175,660; and 7.65 percent of taxable income
exceeding $175,660.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB78,1 1Section 1. 71.06 (1q) of the statutes is repealed and recreated to read:
AB78,2,62 71.06 (1q) Fiduciaries, single individuals, and heads of households; after
32020.
The tax to be assessed, levied, and collected upon the taxable incomes of all
4fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and
5single individuals and heads of households shall be computed at the following rates
6for taxable years beginning after December 31, 2020:
AB78,2,77 (a) On all taxable income from $0 to $23,930, 3.54 percent.
AB78,2,98 (b) On all taxable income exceeding $23,930 but not exceeding $263,480, 6.27
9percent.
AB78,2,1010 (c) On all taxable income exceeding $263,480, 7.65 percent.
AB78,2 11Section 2. 71.06 (2) (i) of the statutes is repealed and recreated to read:
AB78,2,1312 71.06 (2) (i) For joint returns, for taxable years beginning after
13December 31, 2020:
AB78,3,1
11. On all taxable income from $0 to $31,910, 3.54 percent.
AB78,3,32 2. On all taxable income exceeding $31,910 but not exceeding $351,310, 6.27
3percent.
AB78,3,44 3. On all taxable income exceeding $351,310, 7.65 percent.
AB78,3 5Section 3. 71.06 (2) (j) of the statutes is repealed and recreated to read:
AB78,3,76 71.06 (2) (j) For married persons filing separately, for taxable years beginning
7after December 31, 2020:
AB78,3,88 1. On all taxable income from $0 to $15,960, 3.54 percent.
AB78,3,109 2. On all taxable income exceeding $15,960 but not exceeding $175,660, 6.27
10percent.
AB78,3,1111 3. On all taxable income exceeding $175,660, 7.65 percent.
AB78,4 12Section 4. 71.06 (2e) (a) of the statutes is repealed.
AB78,5 13Section 5. 71.06 (2e) (b) of the statutes is amended to read:
AB78,3,2514 71.06 (2e) (b) For taxable years beginning after December 31, 2009 2020, the
15maximum dollar amount in each tax bracket, and the corresponding minimum dollar
16amount in the next bracket, under subs. (1p) (d), (1q) (c), (a) and (b) and (2) (g) 4., (h)
174.,
(i) 3., 1. and 2. and (j) 3. 1. and 2., and the dollar amount in the top bracket under
18subs. (1p) (e), (1q) (d), (c) and (2) (g) 5., (h) 5., (i) 4., 3. and (j) 4. 3., shall be increased
19each year by a percentage equal to the percentage change between the U.S. consumer
20price index for all urban consumers, U.S. city average, for the month of August of the
21previous year and the U.S. consumer price index for all urban consumers, U.S. city
22average, for the month of August 2008 2019, as determined by the federal
23department of labor, except that for taxable years beginning after December 31,
242011,
the adjustment may occur only if the resulting amount is greater than the
25corresponding amount that was calculated for the previous year.
AB78,6
1Section 6. 71.06 (2s) of the statutes is repealed and recreated to read:
AB78,4,142 71.06 (2s) Nonresidents and part-year residents. For taxable years
3beginning after December 31, 2020, with respect to nonresident individuals,
4including individuals changing their domicile into or from this state, the tax brackets
5under subs. (1q) and (2) (i) and (j) shall be multiplied by a fraction, the numerator
6of which is Wisconsin adjusted gross income and the denominator of which is federal
7adjusted gross income. In this paragraph, for married persons filing separately
8“adjusted gross income" means the separate adjusted gross income of each spouse,
9and for married persons filing jointly “adjusted gross income" means the total
10adjusted gross income of both spouses. If an individual and that individual's spouse
11are not both domiciled in this state during the entire taxable year, the tax brackets
12under subs. (1q) and (2) (i) and (j) on a joint return shall be multiplied by a fraction,
13the numerator of which is their joint Wisconsin adjusted gross income and the
14denominator of which is their joint federal adjusted gross income.
AB78,7 15Section 7. 71.64 (9) (b) (intro.) of the statutes is renumbered 71.64 (9) (bm) and
16amended to read:
AB78,4,2017 71.64 (9) (bm) The department shall from time to time adjust the withholding
18tables to reflect any changes in income tax rates, any applicable surtax or any
19changes in dollar amounts in s. 71.06 (1), (1m), (1n), (1p), (1q), and (2) resulting from
20statutory changes, except as follows:.
AB78,8 21Section 8. 71.64 (9) (b) 1. and 2. of the statutes are repealed.
AB78,9 22Section 9. Nonstatutory provisions.
AB78,5,223 (1) Tax rates and brackets. No later than 90 days after the effective date of this
24subsection, the department of revenue shall update its income tax withholding

1tables to reflect the changes made in this act by s. 71.06 (1q) and (2) (i) and (j) for
2taxable years beginning after December 31, 2020.
AB78,10 3Section 10. Initial applicability.
AB78,5,64 (1) Tax rates and brackets. The treatment of ss. 71.06 (2e) (a) and (b) and (2s)
5and 71.64 (9) (b) (intro.), 1., and 2. first applies to taxable years beginning after
6December 31, 2020.
AB78,5,77 (End)
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