This guide provides an overview of Wisconsin sales tax rules, rates, and compliance requirements for businesses selling products or services in the state. It covers the latest 2023 sales tax changes in Wisconsin and highlights key information needed to remain compliant.
Wisconsin sales tax at a glance
Wisconsin sales tax rates & calculations in 2023
The Wisconsin sales tax rate in 2023 is 5%. This comprises a base rate of 5% plus no mandatory local rate. Depending on the local sales tax jurisdiction, the total tax rate can be as high as 5.5%.
List of local sales tax rates in Wisconsin
You can look up the full table of sales tax rates in each city and county in Wisconsin on the govt website. But here’s a snippet of the same.
Recent tax rate changes in Wisconsin
Starting January 1, 2024, both Milwaukee County and the City of Milwaukee will increase its sales taxes. Sales taxes in the City of Milwaukee will rise from 5.5% to 7.9%, while sales taxes outside the city, but still within Milwaukee County, will rise from 5.5% to 5.9%.
Additionally, Milwaukee County will adopt another 0.5% sales tax increase on January 1, 2025. This will bring the total sales and use tax rate to 7.1% in Milwaukee County.
FAQs
How do you calculate Wisconsin sales tax?
To calculate Wisconsin sales tax, you can use the following formula:
Sales tax = (base rate + local rate) * purchase price
For instance, if the base rate is 5%, the local rate is 0.5%, and the purchase price is $100, then the sales tax would be $5.50.
What are the penalties for not paying Wisconsin sales tax?
Penalties for not paying Wisconsin sales tax can include fines of up to $500 per violation and interest charges of 1.5% per month. Criminal charges may also apply in cases of tax evasion.
What’s the difference between destination-based and origin-based sales tax states?
Destination-based sales tax states collect tax based on where the purchase is delivered, while origin-based states collect tax based on where the sale originated. Wisconsin is a destination-based sales tax state.
Is Wisconsin a streamlined sales tax state?
Yes, Wisconsin is a full member state of the Streamlined Sales and Use Tax Agreement (SSUTA).
Sales tax nexus table in Wisconsin
FAQs
Do I need a Wisconsin seller's permit if I’m only a wholesaler?
Yes, you likely need a Wisconsin seller’s permit if you are making any wholesale sales in the state. Wholesale transactions are generally taxable unless the buyer provides a valid resale certificate.
Do I need a Wisconsin seller's permit if I only sell temporarily in the state?
Yes, if you are making retail sales in Wisconsin, even temporarily, you likely need a Wisconsin seller’s permit. There is no exception for temporary sellers.
Exemptions from sales tax in Wisconsin
Wisconsin provides sales tax exemptions on many items, including:
- Most groceries
- Prescription drugs and medical devices
- Most services
- Manufacturing equipment
FAQs
Are groceries taxable in Wisconsin?
Most groceries are exempt from sales tax in Wisconsin, including meat, produce, dairy products, bakery items, and more. However, prepared foods, soft drinks, candy, dietary supplements, and certain luxury foods are taxable.
Is clothing taxable in Wisconsin?
Clothing is taxable under Wisconsin sales tax. This includes shirts, pants, coats, shoes, belts, underwear, diapers, and other apparel items.
Are digital products taxable in Wisconsin?
Yes, digital products like software downloads, Streaming media, ebooks, music downloads, apps, and more are generally taxable in Wisconsin.
Is software-as-a-service (SaaS) taxable in Wisconsin?
No, SaaS and other online services are not subject to Wisconsin sales tax.
Are services taxable in Wisconsin?
Most services are not taxable in Wisconsin. However, some specific services like landscaping, pet grooming, and investigative services are taxable.
Excise taxes in Wisconsin (alcohol, tobacco, gasoline, fuel, marijuana)
Wisconsin levies excise taxes on alcohol, tobacco, gasoline, diesel, and other fuels. The state does not allow recreational marijuana, so there are currently no marijuana excise taxes.
Food and beverage tax in Wisconsin
Wisconsin does not have a general sales tax on food and beverages. However, there are excise taxes on some specific items:
- Alcoholic beverages: $0.858 per liter
- Soda and soft drinks
Remote sellers in Wisconsin
Remote sellers with no physical presence in Wisconsin may still have economic sales tax nexus if they exceed $100,000 in sales or 200 transactions in the state. Remote sellers meeting either threshold must register, collect, file, and remit Wisconsin sales tax.
Prepaid sales tax rates for fuel products in Wisconsin
Wisconsin has the following prepaid sales tax rates per gallon of fuel:
Discretionary taxes in Wisconsin (local sales taxes)
In addition to the 5% state sales tax, there are several local sales taxes in various Wisconsin jurisdictions. Local sales tax rates currently range from 0.5% - 1.75%.
Collecting sales tax in Wisconsin
Collecting sales tax in Wisconsin involves registering for a seller's permit, integrating your sales channels to track taxable transactions, calculating the correct amount of sales tax owed on each order, filing regular sales tax returns, and remitting payments to the Wisconsin Department of Revenue.
Determining if you need to collect Wisconsin sales tax
You must collect and remit Wisconsin sales tax if you have either physical or economic nexus in the state.
Physical nexus means having property, employees, inventory, or other tangible assets in Wisconsin. Economic nexus means exceeding $100,000 in Wisconsin sales or 200 Wisconsin transactions in the current or previous year.
Sellers who meet either threshold must register for a Wisconsin seller's permit and begin collecting, reporting, and paying sales tax to the state. Wisconsin also has marketplace facilitator laws requiring platforms like Amazon, eBay, or Etsy to collect tax on behalf of third-party sellers in certain situations.
Registering for a Wisconsin seller's permit
To legally collect and remit Wisconsin sales tax, businesses must first register for a Wisconsin seller's permit, also known as a seller's license or sales tax permit. You can quickly register online at the Wisconsin Business Tax Registration portal.
The online application will guide you through entering key details about your business. You'll need to have handy your FEIN, business start date, NAICS industry code, business activity classification, ownership structure, and more.
Physical signatures are no longer required - you can submit the application entirely online. Once submitted, you should receive your 15-digit Wisconsin seller's permit number within a few days via email and postal mail. This officially authorizes your business to collect, file, and remit Wisconsin sales tax.
Charging customers the correct sales tax rate
As a seller with nexus in Wisconsin, your next obligation is charging customers the proper amount of state and local sales tax at checkout. Wisconsin has over 1,400 local tax jurisdictions, so rates can vary widely based on shipping location.
Filing Wisconsin sales tax returns
Returns and payments are due the last day of the month following the reporting period. For example, if you file quarterly returns, your Q1 (Jan-Mar) taxes are due April 30. High-volume sellers may also be required to make sales tax prepayments by the 20th of the following month.
Filing your Wisconsin sales tax return involves tallying your gross sales, allowable deductions, taxable sales, sales tax collected, and sales tax owed for the period. You can file returns through the My Tax Account portal or mail paper returns. Payments can be submitted online or mailed.
Consider leveraging a white-glove sales tax compliance service like Numeral to eliminate manual calculations and submissions. With Numeral, you can rest assured that your taxes are being taken care of and you spend only 5 minutes each month to approve or reject any filings. .
Managing sales tax exemptions
Some Wisconsin transactions may qualify for exemption from sales tax, like sales for resale, manufacturing machinery purchases, farm equipment, and more. As the seller, it's your responsibility to collect a valid exemption certificate for any tax-exempt sales.
The Wisconsin DOR provides fillable exemption certificate templates you can have buyers complete. Be sure to collect the full customer details, exemption reason, products covered, and authorizing signature. Keep certificates on file for at least seven years in case of audit.
Record-keeping requirements
As a Wisconsin sales tax collector, you must keep detailed records of all taxable sales and exempt transactions for at least seven years. Records should include exemption certificates, gross receipts totals, deductions worksheets, tax calculation formulas, bank statements, tax return copies, and proof tax payments were remitted on time.
Maintaining meticulous records is vital because Wisconsin can audit sellers for 4 years back to check for unintentional errors or intentional tax avoidance. Leverage bookkeeping software and cloud storage to efficiently retain searchable, digital copies of everything required.
Filing and paying sales taxes in Wisconsin
To file and pay Wisconsin sales tax, businesses must tally their gross sales, exemptions, deductions, taxable sales, and sales tax collected during each reporting period. This information is then entered on the appropriate sales tax return form and submitted along with payment to the Wisconsin DOR.
Filing frequency depends on the annual sales volume:
- Monthly filing: Over $20,000 in estimated annual taxable sales
- Quarterly filing: $4,000 - $20,000 in estimated annual taxable sales
- Annual filing: Under $4,000 in estimated annual taxable sales
Payments must be made at the same time the return is filed. Filing and payment deadlines vary based on reporting period.
Sales tax return filing schedule and due dates in Wisconsin
The following due dates apply to Wisconsin sales tax returns:
Monthly
Quarterly
Annual
Filing penalties in Wisconsin
Wisconsin charges a 5% late filing penalty, plus 1.5% per month interest on unpaid tax. Total penalties will not exceed 25% per reporting period. The minimum penalty is $25 per month.
FAQs
What are the Wisconsin sales tax due dates?
Due dates vary based on monthly, quarterly or annual filing status. Generally returns and payments are due by the last day of the month following the tax period.
I didn’t collect any Wisconsin sales tax during this period. Do I still need to file a return?
Yes, even with $0 sales tax collected you must file a Wisconsin return for every period to avoid late penalties.
Can I get an extension on filing my Wisconsin sales tax return?
Yes, you can submit a written request at least one month before the due date to receive a 30-day filing extension. An extension gives more time to file, but not more time to pay.
Can I amend a Wisconsin sales tax return?
Yes, you can file an amended Wisconsin return to correct errors or omissions. Indicate that your return is an amended filing and submit related payments owed, if any.
Audit & appeals process
The Wisconsin DOR routinely conducts sales and use tax field audits on registered businesses to ensure proper tax payments. Audits typically cover a 31⁄2 year lookback period.
Wisconsin sales tax audit process
The steps in a Wisconsin sales tax audit are:
- Notification letter: Wisconsin DOR sends a letter requesting access to records
- Initial meeting: The auditor explains the audit process and documents needed
- Information submission: Provide data on gross sales, exemptions, deductions, tax charged, and more
- Review: Auditor analyzes records to determine taxes paid vs. taxes owed
- Audit findings report: Final determinations on tax due, interest, and penalties
What to expect during the audit?
In the audit, the auditor will review your Wisconsin tax returns, sales records, exemption certificates, and proof of tax payments. You may need to pull bank statements, accounting software exports, invoices, receipts, and other documentation.
The auditor is looking for common errors like incorrect tax rates charged, computation mistakes, unreported cash sales, invalid exemptions, and failure to file returns. Any discrepancies result in tax assessments plus interest and penalties.
After the audit – Appealing the results
If you disagree with the audit results, you have 30 days after receiving the notice of assessment to file a petition for redetermination contesting the amount due. The appeals process has multiple stages including an independent review, hearing, and ability to take the dispute to tax court.
How to register for sales tax in Wisconsin
Follow these steps to register for a Wisconsin seller's permit:
- Gather your FEIN, NAICS code, ownership structure details
- Complete the online application through Wisconsin Business Tax Registration
- Enter your business information and submit
- Receive your 15-digit seller's permit number
- Begin collecting, reporting, and remitting WI sales tax
There is a one-time $20 registration fee when applying for a new seller’s permit in Wisconsin.
Registration requirements for online sellers in Wisconsin
Online retailers have the same sales tax requirements as brick-and-mortar stores when selling taxable goods or services to Wisconsin customers. If you exceed $100,000 in Wisconsin sales or 200 transactions, you must register and collect Wisconsin sales tax regardless of physical presence.
More Information & Contacts
- Authority Name: Wisconsin Department of Revenue
- Phone number: (608) 266-2776
- Website: revenue.wi.gov
There you have it—a comprehensive guide on Wisconsin's sales tax systems. Need help filing taxes for your ecommerce store? Get a demo with Numeral now.
Wisconsin sales tax at a glance
Wisconsin sales tax rates & calculations in 2023
The Wisconsin sales tax rate in 2023 is 5%. This comprises a base rate of 5% plus no mandatory local rate. Depending on the local sales tax jurisdiction, the total tax rate can be as high as 5.5%.
List of local sales tax rates in Wisconsin
You can look up the full table of sales tax rates in each city and county in Wisconsin on the govt website. But here’s a snippet of the same.
Recent tax rate changes in Wisconsin
Starting January 1, 2024, both Milwaukee County and the City of Milwaukee will increase its sales taxes. Sales taxes in the City of Milwaukee will rise from 5.5% to 7.9%, while sales taxes outside the city, but still within Milwaukee County, will rise from 5.5% to 5.9%.
Additionally, Milwaukee County will adopt another 0.5% sales tax increase on January 1, 2025. This will bring the total sales and use tax rate to 7.1% in Milwaukee County.
FAQs
How do you calculate Wisconsin sales tax?
To calculate Wisconsin sales tax, you can use the following formula:
Sales tax = (base rate + local rate) * purchase price
For instance, if the base rate is 5%, the local rate is 0.5%, and the purchase price is $100, then the sales tax would be $5.50.
What are the penalties for not paying Wisconsin sales tax?
Penalties for not paying Wisconsin sales tax can include fines of up to $500 per violation and interest charges of 1.5% per month. Criminal charges may also apply in cases of tax evasion.
What’s the difference between destination-based and origin-based sales tax states?
Destination-based sales tax states collect tax based on where the purchase is delivered, while origin-based states collect tax based on where the sale originated. Wisconsin is a destination-based sales tax state.
Is Wisconsin a streamlined sales tax state?
Yes, Wisconsin is a full member state of the Streamlined Sales and Use Tax Agreement (SSUTA).
Sales tax nexus table in Wisconsin
FAQs
Do I need a Wisconsin seller's permit if I’m only a wholesaler?
Yes, you likely need a Wisconsin seller’s permit if you are making any wholesale sales in the state. Wholesale transactions are generally taxable unless the buyer provides a valid resale certificate.
Do I need a Wisconsin seller's permit if I only sell temporarily in the state?
Yes, if you are making retail sales in Wisconsin, even temporarily, you likely need a Wisconsin seller’s permit. There is no exception for temporary sellers.
Exemptions from sales tax in Wisconsin
Wisconsin provides sales tax exemptions on many items, including:
- Most groceries
- Prescription drugs and medical devices
- Most services
- Manufacturing equipment
FAQs
Are groceries taxable in Wisconsin?
Most groceries are exempt from sales tax in Wisconsin, including meat, produce, dairy products, bakery items, and more. However, prepared foods, soft drinks, candy, dietary supplements, and certain luxury foods are taxable.
Is clothing taxable in Wisconsin?
Clothing is taxable under Wisconsin sales tax. This includes shirts, pants, coats, shoes, belts, underwear, diapers, and other apparel items.
Are digital products taxable in Wisconsin?
Yes, digital products like software downloads, Streaming media, ebooks, music downloads, apps, and more are generally taxable in Wisconsin.
Is software-as-a-service (SaaS) taxable in Wisconsin?
No, SaaS and other online services are not subject to Wisconsin sales tax.
Are services taxable in Wisconsin?
Most services are not taxable in Wisconsin. However, some specific services like landscaping, pet grooming, and investigative services are taxable.
Excise taxes in Wisconsin (alcohol, tobacco, gasoline, fuel, marijuana)
Wisconsin levies excise taxes on alcohol, tobacco, gasoline, diesel, and other fuels. The state does not allow recreational marijuana, so there are currently no marijuana excise taxes.
Food and beverage tax in Wisconsin
Wisconsin does not have a general sales tax on food and beverages. However, there are excise taxes on some specific items:
- Alcoholic beverages: $0.858 per liter
- Soda and soft drinks
Remote sellers in Wisconsin
Remote sellers with no physical presence in Wisconsin may still have economic sales tax nexus if they exceed $100,000 in sales or 200 transactions in the state. Remote sellers meeting either threshold must register, collect, file, and remit Wisconsin sales tax.
Prepaid sales tax rates for fuel products in Wisconsin
Wisconsin has the following prepaid sales tax rates per gallon of fuel:
Discretionary taxes in Wisconsin (local sales taxes)
In addition to the 5% state sales tax, there are several local sales taxes in various Wisconsin jurisdictions. Local sales tax rates currently range from 0.5% - 1.75%.
Collecting sales tax in Wisconsin
Collecting sales tax in Wisconsin involves registering for a seller's permit, integrating your sales channels to track taxable transactions, calculating the correct amount of sales tax owed on each order, filing regular sales tax returns, and remitting payments to the Wisconsin Department of Revenue.
Determining if you need to collect Wisconsin sales tax
You must collect and remit Wisconsin sales tax if you have either physical or economic nexus in the state.
Physical nexus means having property, employees, inventory, or other tangible assets in Wisconsin. Economic nexus means exceeding $100,000 in Wisconsin sales or 200 Wisconsin transactions in the current or previous year.
Sellers who meet either threshold must register for a Wisconsin seller's permit and begin collecting, reporting, and paying sales tax to the state. Wisconsin also has marketplace facilitator laws requiring platforms like Amazon, eBay, or Etsy to collect tax on behalf of third-party sellers in certain situations.
Registering for a Wisconsin seller's permit
To legally collect and remit Wisconsin sales tax, businesses must first register for a Wisconsin seller's permit, also known as a seller's license or sales tax permit. You can quickly register online at the Wisconsin Business Tax Registration portal.
The online application will guide you through entering key details about your business. You'll need to have handy your FEIN, business start date, NAICS industry code, business activity classification, ownership structure, and more.
Physical signatures are no longer required - you can submit the application entirely online. Once submitted, you should receive your 15-digit Wisconsin seller's permit number within a few days via email and postal mail. This officially authorizes your business to collect, file, and remit Wisconsin sales tax.
Charging customers the correct sales tax rate
As a seller with nexus in Wisconsin, your next obligation is charging customers the proper amount of state and local sales tax at checkout. Wisconsin has over 1,400 local tax jurisdictions, so rates can vary widely based on shipping location.
Filing Wisconsin sales tax returns
Returns and payments are due the last day of the month following the reporting period. For example, if you file quarterly returns, your Q1 (Jan-Mar) taxes are due April 30. High-volume sellers may also be required to make sales tax prepayments by the 20th of the following month.
Filing your Wisconsin sales tax return involves tallying your gross sales, allowable deductions, taxable sales, sales tax collected, and sales tax owed for the period. You can file returns through the My Tax Account portal or mail paper returns. Payments can be submitted online or mailed.
Consider leveraging a white-glove sales tax compliance service like Numeral to eliminate manual calculations and submissions. With Numeral, you can rest assured that your taxes are being taken care of and you spend only 5 minutes each month to approve or reject any filings. .
Managing sales tax exemptions
Some Wisconsin transactions may qualify for exemption from sales tax, like sales for resale, manufacturing machinery purchases, farm equipment, and more. As the seller, it's your responsibility to collect a valid exemption certificate for any tax-exempt sales.
The Wisconsin DOR provides fillable exemption certificate templates you can have buyers complete. Be sure to collect the full customer details, exemption reason, products covered, and authorizing signature. Keep certificates on file for at least seven years in case of audit.
Record-keeping requirements
As a Wisconsin sales tax collector, you must keep detailed records of all taxable sales and exempt transactions for at least seven years. Records should include exemption certificates, gross receipts totals, deductions worksheets, tax calculation formulas, bank statements, tax return copies, and proof tax payments were remitted on time.
Maintaining meticulous records is vital because Wisconsin can audit sellers for 4 years back to check for unintentional errors or intentional tax avoidance. Leverage bookkeeping software and cloud storage to efficiently retain searchable, digital copies of everything required.
Filing and paying sales taxes in Wisconsin
To file and pay Wisconsin sales tax, businesses must tally their gross sales, exemptions, deductions, taxable sales, and sales tax collected during each reporting period. This information is then entered on the appropriate sales tax return form and submitted along with payment to the Wisconsin DOR.
Filing frequency depends on the annual sales volume:
- Monthly filing: Over $20,000 in estimated annual taxable sales
- Quarterly filing: $4,000 - $20,000 in estimated annual taxable sales
- Annual filing: Under $4,000 in estimated annual taxable sales
Payments must be made at the same time the return is filed. Filing and payment deadlines vary based on reporting period.
Sales tax return filing schedule and due dates in Wisconsin
The following due dates apply to Wisconsin sales tax returns:
Monthly
Quarterly
Annual
Filing penalties in Wisconsin
Wisconsin charges a 5% late filing penalty, plus 1.5% per month interest on unpaid tax. Total penalties will not exceed 25% per reporting period. The minimum penalty is $25 per month.
FAQs
What are the Wisconsin sales tax due dates?
Due dates vary based on monthly, quarterly or annual filing status. Generally returns and payments are due by the last day of the month following the tax period.
I didn’t collect any Wisconsin sales tax during this period. Do I still need to file a return?
Yes, even with $0 sales tax collected you must file a Wisconsin return for every period to avoid late penalties.
Can I get an extension on filing my Wisconsin sales tax return?
Yes, you can submit a written request at least one month before the due date to receive a 30-day filing extension. An extension gives more time to file, but not more time to pay.
Can I amend a Wisconsin sales tax return?
Yes, you can file an amended Wisconsin return to correct errors or omissions. Indicate that your return is an amended filing and submit related payments owed, if any.
Audit & appeals process
The Wisconsin DOR routinely conducts sales and use tax field audits on registered businesses to ensure proper tax payments. Audits typically cover a 31⁄2 year lookback period.
Wisconsin sales tax audit process
The steps in a Wisconsin sales tax audit are:
- Notification letter: Wisconsin DOR sends a letter requesting access to records
- Initial meeting: The auditor explains the audit process and documents needed
- Information submission: Provide data on gross sales, exemptions, deductions, tax charged, and more
- Review: Auditor analyzes records to determine taxes paid vs. taxes owed
- Audit findings report: Final determinations on tax due, interest, and penalties
What to expect during the audit?
In the audit, the auditor will review your Wisconsin tax returns, sales records, exemption certificates, and proof of tax payments. You may need to pull bank statements, accounting software exports, invoices, receipts, and other documentation.
The auditor is looking for common errors like incorrect tax rates charged, computation mistakes, unreported cash sales, invalid exemptions, and failure to file returns. Any discrepancies result in tax assessments plus interest and penalties.
After the audit – Appealing the results
If you disagree with the audit results, you have 30 days after receiving the notice of assessment to file a petition for redetermination contesting the amount due. The appeals process has multiple stages including an independent review, hearing, and ability to take the dispute to tax court.
How to register for sales tax in Wisconsin
Follow these steps to register for a Wisconsin seller's permit:
- Gather your FEIN, NAICS code, ownership structure details
- Complete the online application through Wisconsin Business Tax Registration
- Enter your business information and submit
- Receive your 15-digit seller's permit number
- Begin collecting, reporting, and remitting WI sales tax
There is a one-time $20 registration fee when applying for a new seller’s permit in Wisconsin.
Registration requirements for online sellers in Wisconsin
Online retailers have the same sales tax requirements as brick-and-mortar stores when selling taxable goods or services to Wisconsin customers. If you exceed $100,000 in Wisconsin sales or 200 transactions, you must register and collect Wisconsin sales tax regardless of physical presence.
More Information & Contacts
- Authority Name: Wisconsin Department of Revenue
- Phone number: (608) 266-2776
- Website: revenue.wi.gov
There you have it—a comprehensive guide on Wisconsin's sales tax systems. Need help filing taxes for your ecommerce store? Get a demo with Numeral now.
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About the author
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Deb Mukherjee
Deb is the head of marketing at Numeral. He has worked with the likes of Shopify and Wonderment and has helped countless ecommerce stores scale through seamlessly. With a background in finance, he often finds himself advising stores on sales tax and good financial systems.
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