71.05(25m)(a)2.2. “Wisconsin qualified opportunity fund” means a qualified opportunity fund, as defined in 26 USC 1400Z-2 (d) (1), that holds at least 90 percent of its assets in Wisconsin qualified opportunity zone property, as measured on the last day of the first 6-month period of the fund’s taxable year and the last day of the fund’s taxable year. 71.05(25m)(a)3.3. “Wisconsin qualified opportunity zone” means a population census tract located in this state that is designated as a qualified opportunity zone under 26 USC 1400Z-1. 71.05(25m)(a)4.4. “Wisconsin qualified opportunity zone property” means qualified opportunity zone property, as defined in 26 USC 1400Z-2 (d) (2), except that qualified opportunity zone business property, as defined in 26 USC 1400Z-2 (d) (2) (D) and (3) (A) (i), shall be located in a Wisconsin qualified opportunity zone. 71.05(25m)(b)(b) For taxable years beginning after December 31, 2019, a claimant may subtract from federal adjusted gross income the amount of gain excluded from federal gross income in the taxable year due to the application of 26 USC 1400Z-2 (b) (2) (B) (iii) for an investment held in a Wisconsin qualified opportunity fund for at least 5 years or due to the application of 26 USC 1400Z-2 (b) (2) (B) (iv) for an investment held in a Wisconsin qualified opportunity fund for at least 7 years; except that the gain may not include any amount for which the claimant claimed a subtraction under sub. (25) (b) or any gain described under s. 71.05 (26) (b), 2023 stats. 71.05(25m)(c)(c) In the form and manner prescribed by the department, a fund shall annually certify to each investor and the department that it qualifies as a Wisconsin qualified opportunity fund for the fund’s taxable year. A fund shall make the annual certifications under this paragraph no later than the due date, including extensions, of the fund’s corresponding income or franchise tax return under this chapter. 71.05(25m)(d)(d) Nothing in this subsection affects, or requires an adjustment to, a subtraction by the claimant under sub. (6) (b) 9. for the same taxable year. 71.05(25m)(e)(e) An individual partner, member, or shareholder may not make a subtraction under par. (b) if the entity of which the individual is a partner, member, or shareholder makes a subtraction under par. (b) when computing net income under s. 71.21 (6) (d) 1. or makes a subtraction under s. 71.34 (1k) (p) when computing net income under s. 71.365 (4m) (d) 1. 71.05(26)(26) Income tax deferral; qualified Wisconsin business. 71.05(26)(a)1.1. “Claimant” means an individual; an individual partner or member of a partnership, limited liability company, or limited liability partnership; or an individual shareholder of a tax-option corporation. 71.05(26)(a)2m.2m. “Investment” means amounts paid to acquire stock or other ownership interest in a partnership, corporation, tax-option corporation, or limited liability company treated as a partnership or corporation. 71.05(26)(a)3.3. “Long-term capital gain” means the gain realized from the sale of any capital asset held more than one year that is treated as a long-term gain under the Internal Revenue Code. 71.05(26)(a)4.4. “Qualified Wisconsin business” means a business certified by the Wisconsin Economic Development Corporation under s. 238.146, 2011 stats., or registered with the department under s. 73.03 (69). 71.05(26)(bm)(bm) For taxable years beginning after December 31, 2013, a claimant may subtract from federal adjusted gross income any amount of a long-term capital gain if the claimant does all of the following: 71.05(26)(bm)1.1. Within 180 days after the sale of the asset that generated the gain, invests all of the gain in a qualified Wisconsin business. 71.05(26)(bm)2.2. After making the investment as described under subd. 1., notifies the department, on a form prepared by the department, that the claimant will not declare the gain on the claimant’s income tax return because the claimant has reinvested the capital gain as described under subd. 1. The form shall be sent to the department along with the claimant’s income tax return for the year to which the claim relates. 71.05(26)(c)(c) The basis of the investment described in s. 71.05 (26) (b) 2., 2023 stats., shall be calculated by subtracting the gain described in s. 71.05 (26) (b) 1., 2023 stats., from the amount of the investment described in s. 71.05 (26) (b) 2., 2023 stats. The basis of the investment described in par. (bm) 1. shall be calculated by subtracting the gain described in par. (bm) 1. from the amount of the investment described in par. (bm) 1. 71.05(26)(d)(d) If a claimant defers the payment of income taxes on a capital gain under this subsection, the claimant may not use the gain to net capital gains and losses, as described under sub. (10) (c). 71.05(26)(f)(f) If a claimant claims a subtraction for a capital gain under s. 71.05 (26) (b), 2023 stats., or par. (bm), the gain may not be used as a qualifying gain under sub. (25). 71.05 HistoryHistory: 1987 a. 312; 1987 a. 411 ss. 42, 43, 45, 47 to 49, 51 to 53; 1989 a. 31, 46; 1991 a. 2, 37, 39, 269; 1993 a. 16, 112, 204, 263, 437; 1995 a. 27, 56, 209, 227, 261, 371, 403, 453; 1997 a. 27, 35, 39, 237; 1999 a. 9, 32, 44, 54, 65, 167; 2001 a. 16, 104, 105, 109; 2003 a. 85, 99, 119, 135, 183, 255, 289, 321, 326; 2005 a. 22, 25, 216, 254, 335, 361, 479, 483; 2007 a. 20, 96, 226; 2009 a. 2, 28, 205, 265, 269, 276, 295, 332, 344; 2011 a. 3, 5, 10, 32, 212, 232, 237; 2011 a. 260 ss. 80, 81; 2013 a. 19, 20, 128, 145; 2013 a. 166 s. 76; 2013 a. 173, 227; 2015 a. 55, 60, 84, 195; 2015 a. 197 s. 51; 2015 a. 216, 312; 2017 a. 17, 58, 59, 197, 231, 368; 2019 a. 7, 9, 54, 136; 2021 a. 1, 58, 127, 156, 157, 239; 2021 a. 240 ss. 12, 30; 2023 a. 19, 104, 138, 146, 148, 267; 2025 a. 15, 118, 127, 130. 71.05 AnnotationShareholder distributions derived from investments in direct obligations of the federal government are exempt under sub. (6) (b) 1. Capital Preservation Fund, Inc. v. DOR, 145 Wis. 2d 841, 429 N.W.2d 551 (Ct. App. 1988). 71.05 AnnotationThe fact that federal employees whose service is interrupted can repurchase prior years of employment for benefit determination purposes does not erase their absence from employment on December 31, 1963, so that they may be considered to have been employed on that date under sub. (1) (a). Hafner v. DOR, 2000 WI App 216, 239 Wis. 2d 218, 619 N.W.2d 300, 00-0511. 71.05 AnnotationSub. (6) (a) 1. requires adding to Wisconsin income all types of interest excluded from federal interest. All distributions characterized as interest under federal tax law must be included as interest income. Borge v. Wisconsin Tax Appeals Commission, 2002 WI App 14, 250 Wis. 2d 624, 639 N.W.2d 757, 01-0488. 71.05 AnnotationWhen an agreement is silent on the allocation of a payment between a covenant not to compete and other claims or compensation, the commission may make a reasonable allocation if it is: 1) based on credible evidence; 2) the parties intended a portion of the payment as compensation for the covenant not to compete; and 3) the payment is economically reasonable. Schwartz v. DOR, 2002 WI App 255, 258 Wis. 2d 112, 653 N.W.2d 150, 02-0372. 71.05 AnnotationUnder sub. (1) (a), if one was a member of one of the listed funds on December 31, 1963, retirement benefits paid on that person’s behalf may not be exempt. Withdrawal of contributions terminated membership and the purchase of previously forfeited years of service did not reinstate the account as of December 31, 1963. Kamps v. DOR, 2003 WI App 106, 264 Wis. 2d 794, 663 N.W.2d 306, 02-2355. 71.05 AnnotationSub. (6) (b) 5. requires that there be a recovery of a federal itemized deduction, for which no tax benefit was received for Wisconsin purposes. The tax benefit rule means that if an amount deducted from gross income in one taxable year is recoverable in a later year, the recovery is income in the later year. Dettwiler v. DOR, 2007 WI App 125, 301 Wis. 2d 512, 731 N.W.2d 663, 06-1660. 71.05 AnnotationAdoption Assistance Offers Tax Relief. Franklin. Wis. Law. Feb. 1998.
71.0671.06 Rates of taxation. 71.06(1q)(1q) Fiduciaries, single individuals, and heads of households; 2012 to 2024. The tax to be assessed, levied, and collected upon the taxable incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and single individuals and heads of households shall be computed at the following rates for taxable years beginning after December 31, 2012, and before January 1, 2025: 71.06(1q)(a)(a) On all taxable income from $0 to $7,500, 4.40 percent, except that for taxable years beginning after December 31, 2013, 4.0 percent, less fifty hundredths for taxable years beginning after December 2022. 71.06(1q)(b)(b) On all taxable income exceeding $7,500 but not exceeding $15,000, 5.84 percent, except that for taxable years beginning after December 31, 2018, 5.21 percent, less eighty-one hundredths for taxable years beginning after December 2022. 71.06(1q)(c)(c) On all taxable income exceeding $15,000 but not exceeding $225,000, 6.27 percent, except that for taxable years beginning after December 31, 2020, 5.30 percent. 71.06(1q)(d)(d) On all taxable income exceeding $225,000, 7.65 percent. 71.06(1r)(1r) Fiduciaries, single individuals, and heads of household; after 2024. The tax to be assessed, levied, and collected upon the taxable incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and single individuals and heads of households shall be computed at the following rates for taxable years beginning after December 31, 2024: 71.06(1r)(a)(a) On all taxable income from $0 to $14,680, 3.50 percent. 71.06(1r)(b)(b) On all taxable income exceeding $14,680 but not exceeding $50,480, 4.40 percent. 71.06(1r)(c)(c) On all taxable income exceeding $50,480 but not exceeding $323,290, 5.30 percent. 71.06(1r)(d)(d) On all taxable income exceeding $323,290, 7.65 percent. 71.06(2)(2) Married persons. The tax to be assessed, levied and collected upon the taxable incomes of all married persons shall be computed at the following rates: 71.06(2)(i)(i) For joint returns, for taxable years beginning after December 31, 2012, and before January 1, 2025: 71.06(2)(i)1.1. On all taxable income from $0 to $10,000, 4.40 percent, except that for taxable years beginning after December 31, 2013, 4.0 percent, less fifty hundredths for taxable years beginning after December 2022. 71.06(2)(i)2.2. On all taxable income exceeding $10,000 but not exceeding $20,000, 5.84 percent, except that for taxable years beginning after December 31, 2018, 5.21 percent, less eighty-one hundredths for taxable years beginning after December 2022. 71.06(2)(i)3.3. On all taxable income exceeding $20,000 but not exceeding $300,000, 6.27 percent, except that for taxable years beginning after December 31, 2020, 5.30 percent. 71.06(2)(i)4.4. On all taxable income exceeding $300,000, 7.65 percent. 71.06(2)(j)(j) For married persons filing separately, for taxable years beginning after December 31, 2012, and before January 1, 2025: 71.06(2)(j)1.1. On all taxable income from $0 to $5,000, 4.40 percent, except that for taxable years beginning after December 31, 2013, 4.0 percent, less fifty hundredths for taxable years beginning after December 2022. 71.06(2)(j)2.2. On all taxable income exceeding $5,000 but not exceeding $10,000, 5.84 percent, except that for taxable years beginning after December 31, 2018, 5.21 percent, less eighty-one hundredths for taxable years beginning after December 2022. 71.06(2)(j)3.3. On all taxable income exceeding $10,000 but not exceeding $150,000, 6.27 percent, except that for taxable years beginning after December 31, 2020, 5.30 percent. 71.06(2)(j)4.4. On all taxable income exceeding $150,000, 7.65 percent. 71.06(2)(k)(k) For joint returns, for taxable years beginning after December 31, 2024: 71.06(2)(k)1.1. On all taxable income from $0 to $19,580, 3.50 percent. 71.06(2)(k)2.2. On all taxable income exceeding $19,580 but not exceeding $67,300, 4.40 percent. 71.06(2)(k)3.3. On all taxable income exceeding $67,300 but not exceeding $431,060, 5.30 percent. 71.06(2)(k)4.4. On all taxable income exceeding $431,060, 7.65 percent. 71.06(2)(L)(L) For married persons filing separately, for taxable years beginning after December 31, 2024: 71.06(2)(L)1.1. On all taxable income from $0 to $9,790, 3.50 percent. 71.06(2)(L)2.2. On all taxable income exceeding $9,790 but not exceeding $33,650, 4.40 percent. 71.06(2)(L)3.3. On all taxable income exceeding $33,650 but not exceeding $215,530, 5.30 percent. 71.06(2)(L)4.4. On all taxable income exceeding $215,530, 7.65 percent. 71.06(2e)(a)(a) For taxable years beginning after December 31, 1998, and before January 1, 2000, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1m) and (2) (c) and (d), and for taxable years beginning after December 31, 1999, and before January 1, 2025, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1n), (1p) (a) to (c), (1q) (a) and (b), and (2) (e), (f), (g) 1. to 3., (h) 1. to 3., (i) 1. and 2., and (j) 1. and 2., shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 1997, as determined by the federal department of labor, except that for taxable years beginning after December 31, 2000, and before January 1, 2002, the dollar amount in the top bracket under subs. (1p) (c) and (d), (2) (g) 3. and 4. and (h) 3. and 4. shall be increased by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 1999, as determined by the federal department of labor, except that for taxable years beginning after December 31, 2011, the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year. 71.06(2e)(b)(b) For taxable years beginning after December 31, 2009, and before January 1, 2025, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1p) (d), (1q) (c), and (2) (g) 4., (h) 4., (i) 3., and (j) 3., and the dollar amount in the top bracket under subs. (1p) (e), (1q) (d), and (2) (g) 5., (h) 5., (i) 4., and (j) 4., shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 2008, as determined by the federal department of labor, except that for taxable years beginning after December 31, 2011, the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year. 71.06(2e)(bm)(bm) For taxable years beginning after December 31, 2025, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1r) and (2) (k) and (L), shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 2024, as determined by the federal department of labor, except that the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year. 71.06(2e)(c)(c) Each amount that is revised under this subsection shall be rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount shall be increased to the next higher multiple of $10. The department of revenue shall annually adjust the changes in dollar amounts required under this subsection and incorporate the changes into the income tax forms and instructions. 71.06(2m)(2m) Rate changes. If a rate under sub. (1r) or (2) (k) or (L) changes during a taxable year, the taxpayer shall compute the tax for that taxable year by the methods applicable to the federal income tax under section 15 of the Internal Revenue Code. 71.06(2s)(2s) Nonresidents and part-year residents. 71.06(2s)(a)(a) For taxable years beginning after December 31, 1996, and before January 1, 1998, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under subs. (1) and (2) [sub. (2) and s. 71.06 (1), 2023 stats.,] shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income and the denominator of which is federal adjusted gross income. In this paragraph, for married persons filing separately “adjusted gross income” means the separate adjusted gross income of each spouse, and for married persons filing jointly “adjusted gross income” means the total adjusted gross income of both spouses. If an individual and that individual’s spouse are not both domiciled in this state during the entire taxable year, the tax brackets under subs. (1) and (2) [sub. (2) and s. 71.06 (1), 2023 stats.,] on a joint return shall be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income. 71.06 NoteNOTE: The correct cross-reference is shown in brackets. Section 71.06 (1) was repealed by 2025 Wis. Act 118. Corrective legislation is pending. 71.06(2s)(b)(b) For taxable years beginning after December 31, 1997, and before January 1, 2000, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under subs. (1m) and (2) (c) and (d) [s. 71.06 (1m), 2023 stats., s. 71.06 (2) (c), 2023 stats., and s. 71.06 (2) (d), 2023 stats.,] shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income and the denominator of which is federal adjusted gross income. In this paragraph, for married persons filing separately “adjusted gross income” means the separate adjusted gross income of each spouse, and for married persons filing jointly “adjusted gross income” means the total adjusted gross income of both spouses. If an individual and that individual’s spouse are not both domiciled in this state during the entire taxable year, the tax brackets under subs. (1m) and (2) (c) and (d) [s. 71.06 (1m), 2023 stats., s. 71.06 (2) (c), 2023 stats., and s. 71.06 (2) (d), 2023 stats.,] on a joint return shall be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income. 71.06 NoteNOTE: The correct cross-references are shown in brackets. Section 71.06 (1m) and (2) (c) and (d) were repealed by 2025 Wis. Act 118. Corrective legislation is pending. 71.06(2s)(c)(c) For taxable years beginning after December 31, 1999, and before January 1, 2001, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under subs. (1n) and (2) (e) and (f) [s. 71.06 (1n), 2023 stats., s. 71.06 (2) (e), 2023 stats., and s. 71.06 (2) (f), 2023 stats.,] shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income and the denominator of which is federal adjusted gross income. In this paragraph, for married persons filing separately “adjusted gross income” means the separate adjusted gross income of each spouse, and for married persons filing jointly “adjusted gross income” means the total adjusted gross income of both spouses. If an individual and that individual’s spouse are not both domiciled in this state during the entire taxable year, the tax brackets under subs. (1n) and (2) (e) and (f) [s. 71.06 (1n), 2023 stats., s. 71.06 (2) (e), 2023 stats., and s. 71.06 (2) (f), 2023 stats.,] on a joint return shall be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income. 71.06 NoteNOTE: The correct cross-references are shown in brackets. Section 71.06 (1n) and (2) (e) and (f) were repealed by 2025 Wis. Act 118. Corrective legislation is pending. 71.06(2s)(d)(d) For taxable years beginning after December 31, 2000, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under subs. (1p), (1q), (1r), and (2) (g), (h), (i), (j), (k), and (L) [subs. (1q), (1r), and (2) (i), (j), (k), and (L) and s. 71.06 (1p), 2023 stats., s. 71.06 (2) (g), 2023 stats., and s. 71.06 (2) (h), 2023 stats.,] shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income and the denominator of which is federal adjusted gross income. In this paragraph, for married persons filing separately “adjusted gross income” means the separate adjusted gross income of each spouse, and for married persons filing jointly “adjusted gross income” means the total adjusted gross income of both spouses. If an individual and that individual’s spouse are not both domiciled in this state during the entire taxable year, the tax brackets under subs. (1p), (1q), (1r), and (2) (g), (h), (i), (j), (k), and (L) [subs. (1q), (1r), and (2) (i), (j), (k), and (L) and s. 71.06 (1p), 2023 stats., s. 71.06 (2) (g), 2023 stats., and s. 71.06 (2) (h), 2023 stats.,] on a joint return shall be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income. 71.06 NoteNOTE: The correct cross-references are shown in brackets. Section 71.06 (1p) and (2) (g) and (h) were repealed by 2025 Wis. Act 118. Corrective legislation is pending. Effective date noteNOTE: Par. (d) is amended eff. 1-1-31 by 2025 Wis. Act 118 to read: Effective date text(d) For taxable years beginning after December 31, 2000, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under subs. (1p), (1q), (1r), and (2) (g), (h), (k), and (L) [subs. (1r) and (2) (k) and (L) and s. 71.06 (1p), 2023 stats., s. 71.06 (2) (g), 2023 stats., s. 71.06 (2) (h), 2023 stats., and s. 71.06 (1q), 2029 stats.,] shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income and the denominator of which is federal adjusted gross income. In this paragraph, for married persons filing separately “adjusted gross income” means the separate adjusted gross income of each spouse, and for married persons filing jointly “adjusted gross income” means the total adjusted gross income of both spouses. If an individual and that individual’s spouse are not both domiciled in this state during the entire taxable year, the tax brackets under subs. (1p), (1q), (1r), and (2) (g), (h), (k), and (L) [subs. (1r) and (2) (k) and (L) and s. 71.06 (1p), 2023 stats., s. 71.06 (2) (g), 2023 stats., s. 71.06 (2) (h), 2023 stats., and s. 71.06 (1q), 2029 stats.,] on a joint return shall be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income.
Effective date noteNOTE: The correct cross-references are shown in brackets. Section 71.06 (1p) and (2) (g) and (h) were repealed eff. 3-29-26 by 2025 Wis. Act 118, and s. 71.06 (1q) is repealed by eff. 1-1-31 by 2025 Wis. Act 118. Corrective legislation is pending. 71.06(3)(3) Tax table. The secretary of revenue shall prepare a table from which the tax in effect on taxable personal income shall be determined. Such table shall be published in the department’s appropriate instructional booklets. The form and the tax computations of the table shall be substantially as follows: 71.06(3)(b)(b) The first 2 columns shall contain the minimum and the maximum amounts, respectively, of taxable income in brackets of not more than $100. Computation of tax on taxable income in excess of the amount shown on the table may be set forth at the foot of such table. 71.06(3)(c)(c) The 3rd column shall show the amount of the tax payable for each bracket before the allowance of any credit. The tax shall be computed at the rates in effect, which rates shall be applied to the amount of income at the middle of each bracket. The amount of tax for each bracket shall be computed to the nearest dollar.
