Income growth puts Wisconsin tax burden at lowest level since at least 1970

Last updated on March 17th, 2020 at 01:31 pm

Growth in personal income helped push the share of income Wisconsinites pay in state and local taxes down to 10.3%, according to a new report from the Wisconsin Policy Forum.

The drop from 10.4% in 2018 marks the eighth straight year the state’s tax burden has declined. It is the lowest tax burden in Wisconsin Policy Forum records that go back to 1970.

“This extends a long-running trend that is attributed both to limited growth in taxes and relatively strong growth in income,” the report says.

While total state and local tax revenues increased by 4.5% in fiscal 2019, total personal income, which includes wages, salaries, investment income and government benefits, increased 5.1% to nearly $300 billion, according to the report.

Tax revenue growth was primarily driven by an increase in state collections, up 6%. Corporate income tax revenue grew almost 50%, largely because of changes to federal tax law. Individual income taxes increased 6.1%

Local taxes grew 1.8%, a drop from the 1.9% increase in local tax revenues in 2018.

Get our email updates

Arthur covers banking and finance and the economy at BizTimes while also leading special projects as an associate editor. He spent also five years covering manufacturing at BizTimes. He previously was managing editor at The Waukesha Freeman. He is a graduate of Carroll University and did graduate coursework at Marquette. A native of southeastern Wisconsin, he is also a nationally certified gymnastics judge and enjoys golf on the weekends.

No posts to display