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2023 - 2024 LEGISLATURE
2023 ASSEMBLY BILL 1
January 19, 2023 - Introduced by Representatives BROOKS, KNODL, RETTINGER,
ROZAR, ALLEN, BODDEN, BRANDTJEN, DITTRICH, GUNDRUM, GUSTAFSON,
MAGNAFICI, MURPHY, PENTERMAN, SPIROS, TUSLER and BEHNKE, cosponsored by
Senators LEMAHIEU, BALLWEG, BRADLEY, CABRAL-GUEVARA, FEYEN, JAMES,
NASS, STROEBEL, TOMCZYK, HUTTON and FELZKOWSKI. Referred to Committee on
Ways and Means.
***AUTHORS SUBJECT TO CHANGE***
AN ACT to repeal 71.06 (1q), 71.06 (1r) (a), 71.06 (1r) (b), 71.06 (1r) (c), 71.06 (2)
(i), 71.06 (2) (j), 71.06 (2) (k), 71.06 (2) (km), 71.06 (2) (L), 71.06 (2) (Lm), 71.06
(2) (m), 71.06 (2) (mm), 71.06 (2e) (be), 71.06 (2e) (bm), 71.06 (2e) (bs), 71.06 (2s)
(e), 71.06 (2s) (f), 71.06 (2s) (g) and 73.03 (71); to renumber 71.06 (1r) (d); to
amend 71.06 (1q) (intro.), 71.06 (1r) (title), 71.06 (2) (i) (intro.), 71.06 (2) (j)
(intro.), 71.06 (2e) (a), 71.06 (2e) (b), 71.06 (2m), 71.06 (2s) (d), 71.125 (1), 71.125
(2), 71.17 (6), 71.64 (9) (b) (intro.), 71.67 (5) (a), 71.67 (5m), 73.03 (71) (c) 2. and
73.03 (71) (d) 2.; and to create 71.06 (1r), 71.06 (2) (k), 71.06 (2) (km), 71.06 (2)
(L), 71.06 (2) (Lm), 71.06 (2) (m), 71.06 (2) (mm), 71.06 (2) (n), 71.06 (2e) (be),
71.06 (2e) (bm), 71.06 (2e) (bs), 71.06 (2s) (e), 71.06 (2s) (f) and 71.06 (2s) (g) of
the statutes; relating to: establishing a flat individual income tax rate.
Analysis by the Legislative Reference Bureau
Under this bill, beginning in taxable year 2026, all individual taxpayers,
regardless of their income, pay the individual income tax at the rate of 3.25 percent.
In addition, for taxable years 2023 through 2025, the bill decreases individual
income tax rates each year for each tax bracket.
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Under current law, there are four income tax brackets for single individuals,
certain fiduciaries, heads of households, and married persons, and the brackets are
indexed for inflation. The rate of taxation under current law for the lowest bracket
for single individuals, certain fiduciaries, heads of households, and married persons
is 3.54 percent of taxable income. The rate for the second bracket is 4.65 percent.
The rate for the third bracket is 5.3 percent. And the rate for the highest bracket is
7.65 percent. After bracket indexing for taxable year 2022, the four brackets for
individuals, certain fiduciaries, and heads of households, to which the above rates
apply, are as follows: 1) taxable income from $0 to $12,760; 2) taxable income
exceeding $12,760 but not exceeding $25,520; 3) taxable income exceeding $25,520
but not exceeding $280,950; and 4) taxable income exceeding $280,950.
The bill establishes the following rates of taxation for taxable year 2023:
1. For the lowest tax bracket, 3.47 percent.
2. For the second bracket, 4.3 percent.
3. For the third bracket, 4.79 percent.
4. For the highest bracket, 6.55 percent.
The bill establishes the following rates of taxation for taxable year 2024:
1. For the lowest tax bracket, 3.4 percent.
2. For the second bracket, 3.95 percent.
3. For the third bracket, 4.28 percent.
4. For the highest bracket, 5.45 percent.
The bill establishes the following rates of taxation for taxable year 2025:
1. For the lowest tax bracket, 3.32 percent.
2. For the second bracket, 3.6 percent.
3. For the third bracket, 3.76 percent.
4. For the highest bracket, 4.35 percent.
Under the bill, for taxable year 2026 and after, the rate of taxation is 3.25
percent for all taxable income. The bill also requires the Department of Revenue to
update, by October 1 before the start of the applicable tax year, the individual income
tax withholding tables to reflect the tax rates, brackets, and sliding scale standard
deduction that are in effect for taxable years 2024, 2025, and 2026.
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:
SECTION 1. 71.06 (1q) (intro.) of the statutes is amended to read:1 - 3 -2023 - 2024 Legislature
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71.06 (1q) FIDUCIARIES, SINGLE INDIVIDUALS, AND HEADS OF HOUSEHOLDS; AFTER
2012 2013 TO 2022. (intro.) 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, 2023:
SECTION 2. 71.06 (1q) of the statutes is repealed.
SECTION 3. 71.06 (1r) (title) of the statutes, as created by 2023 Wisconsin Act
.... (this act), is amended to read:
71.06 (1r) (title) FIDUCIARIES, SINGLE INDIVIDUALS, AND HEADS OF HOUSEHOLDS;
AFTER 2022 2025.
SECTION 4. 71.06 (1r) of the statutes is created to read:
71.06 (1r) FIDUCIARIES, SINGLE INDIVIDUALS, AND HEADS OF HOUSEHOLDS; AFTER
2022. (a) 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, 2022, and before January 1, 2024:
1. On all taxable income from $0 to $7,500, 3.47 percent.
2. On all taxable income exceeding $7,500 but not exceeding $15,000, 4.30
percent.
3. On all taxable income exceeding $15,000 but not exceeding $225,000, 4.79
percent.
4. On all taxable income exceeding $225,000, 6.55 percent.
(b) 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
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single individuals and heads of households shall be computed at the following rates
for taxable years beginning after December 31, 2023, and before January 1, 2025:
1. On all taxable income from $0 to $7,500, 3.40 percent.
2. On all taxable income exceeding $7,500 but not exceeding $15,000, 3.95
percent.
3. On all taxable income exceeding $15,000 but not exceeding $225,000, 4.28
percent.
4. On all taxable income exceeding $225,000, 5.45 percent.
(c) 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, and before January 1, 2026:
1. On all taxable income from $0 to $7,500, 3.32 percent.
2. On all taxable income exceeding $7,500 but not exceeding $15,000, 3.60
percent.
3. On all taxable income exceeding $15,000 but not exceeding $225,000, 3.76
percent.
4. On all taxable income exceeding $225,000, 4.35 percent.
(d) 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 rate of 3.25
percent for taxable years beginning after December 31, 2025.
SECTION 5. 71.06 (1r) (a) of the statutes, as created by 2023 Wisconsin Act ....
(this act), is repealed.
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SECTION 6. 71.06 (1r) (b) of the statutes, as created by 2023 Wisconsin Act ....
(this act), is repealed.
SECTION 7. 71.06 (1r) (c) of the statutes, as created by 2023 Wisconsin Act ....
(this act), is repealed.
SECTION 8. 71.06 (1r) (d) of the statutes, as created by 2023 Wisconsin Act ....
(this act), is renumbered 71.06 (1r).
SECTION 9. 71.06 (2) (i) (intro.) of the statutes is amended to read:
71.06 (2) (i) (intro.) For joint returns, for taxable years beginning after
December 31, 2012, and before January 1, 2023:
SECTION 10. 71.06 (2) (i) of the statutes is repealed.
SECTION 11. 71.06 (2) (j) (intro.) of the statutes is amended to read:
71.06 (2) (j) (intro.) For married persons filing separately, for taxable years
beginning after December 31, 2012, and before January 1, 2023:
SECTION 12. 71.06 (2) (j) of the statutes is repealed.
SECTION 13. 71.06 (2) (k) of the statutes is created to read:
71.06 (2) (k) For joint returns, for taxable years beginning after December 31,
2022, and before January 1, 2024:
1. On all taxable income from $0 to $10,000, 3.47 percent.
2. On all taxable income exceeding $10,000 but not exceeding $20,000, 4.30
percent.
3. On all taxable income exceeding $20,000 but not exceeding $300,000, 4.79
percent.
4. On all taxable income exceeding $300,000, 6.55 percent.
SECTION 14. 71.06 (2) (k) of the statutes, as created by 2023 Wisconsin Act ....
(this act), is repealed.
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SECTION 15. 71.06 (2) (km) of the statutes is created to read:
71.06 (2) (km) For married persons filing separately, for taxable years
beginning after December 31, 2022, and before January 1, 2024:
1. On all taxable income from $0 to $5,000, 3.47 percent.
2. On all taxable income exceeding $5,000 but not exceeding $10,000, 4.30
percent.
3. On all taxable income exceeding $10,000 but not exceeding $150,000, 4.79
percent.
4. On all taxable income exceeding $150,000, 6.55 percent.
SECTION 16. 71.06 (2) (km) of the statutes, as created by 2023 Wisconsin Act
.... (this act), is repealed.
SECTION 17. 71.06 (2) (L) of the statutes is created to read:
71.06 (2) (L) For joint returns, for taxable years beginning after December 31,
2023, and before January 1, 2025:
1. On all taxable income from $0 to $10,000, 3.40 percent.
2. On all taxable income exceeding $10,000 but not exceeding $20,000, 3.95
percent.
3. On all taxable income exceeding $20,000 but not exceeding $300,000, 4.28
percent.
4. On all taxable income exceeding $300,000, 5.45 percent.
SECTION 18. 71.06 (2) (L) of the statutes, as created by 2023 Wisconsin Act ....
(this act), is repealed.
SECTION 19. 71.06 (2) (Lm) of the statutes is created to read:
71.06 (2) (Lm) For married persons filing separately, for taxable years
beginning after December 31, 2023, and before January 1, 2025:
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1. On all taxable income from $0 to $5,000, 3.40 percent.
2. On all taxable income exceeding $5,000 but not exceeding $10,000, 3.95
percent.
3. On all taxable income exceeding $10,000 but not exceeding $150,000, 4.28
percent.
4. On all taxable income exceeding $150,000, 5.45 percent.
SECTION 20. 71.06 (2) (Lm) of the statutes, as created by 2023 Wisconsin Act
.... (this act), is repealed.
SECTION 21. 71.06 (2) (m) of the statutes is created to read:
71.06 (2) (m) For joint returns, for taxable years beginning after December 31,
2024, and before January 1, 2026:
1. On all taxable income from $0 to $10,000, 3.32 percent.
2. On all taxable income exceeding $10,000 but not exceeding $20,000, 3.60
percent.
3. On all taxable income exceeding $20,000 but not exceeding $300,000, 3.76
percent.
4. On all taxable income exceeding $300,000, 4.35 percent.
SECTION 22. 71.06 (2) (m) of the statutes, as created by 2023 Wisconsin Act ....
(this act), is repealed.
SECTION 23. 71.06 (2) (mm) of the statutes is created to read:
71.06 (2) (mm) For married persons filing separately, for taxable years
beginning after December 31, 2024, and before January 1, 2026:
1. On all taxable income from $0 to $5,000, 3.32 percent.
2. On all taxable income exceeding $5,000 but not exceeding $10,000, 3.60
percent.
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3. On all taxable income exceeding $10,000 but not exceeding $150,000, 3.76
percent.
4. On all taxable income exceeding $150,000, 4.35 percent.
SECTION 24. 71.06 (2) (mm) of the statutes, as created by 2023 Wisconsin Act
.... (this act), is repealed.
SECTION 25. 71.06 (2) (n) of the statutes is created to read:
71.06 (2) (n) For joint returns and married persons filing separately, for taxable
years beginning after December 31, 2025, on all taxable income 3.25 percent.
SECTION 26. 71.06 (2e) (a) of the statutes is amended to read:
71.06 (2e) (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, 2023, 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
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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.
SECTION 27. 71.06 (2e) (a) of the statutes, as affected by 2023 Wisconsin Act ....
(this act), is amended to read:
71.06 (2e) (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, 2023, 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., and (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,
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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.
SECTION 28. 71.06 (2e) (b) of the statutes is amended to read:
71.06 (2e) (b) For taxable years beginning after December 31, 2009, and before
January 1, 2023, 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.
SECTION 29. 71.06 (2e) (b) of the statutes, as affected by 2023 Wisconsin Act ....
(this act), is amended to read:
71.06 (2e) (b) For taxable years beginning after December 31, 2009, and before
January 1, 2023, 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., and (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., and (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
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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.
SECTION 30. 71.06 (2e) (be) of the statutes is created to read:
71.06 (2e) (be) 1. For taxable years beginning after December 31, 2022, and
before January 1, 2024, the maximum dollar amount in each tax bracket, and the
corresponding minimum dollar amount in the next bracket, under subs. (1r) (a) 1.
and 2. and (2) (k) 1. and 2. and (km) 1. and 2., 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 1997, 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.
2. For taxable years beginning after December 31, 2022, and before January
1, 2024, the maximum dollar amount in each tax bracket, and the corresponding
minimum dollar amount in the next bracket, under subs. (1r) (a) 3. and (2) (k) 3. and
(km) 3., and the dollar amount in the top bracket under subs. (1r) (a) 4. and (2) (k)
4. and (km) 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 2008, as determined
by the federal department of labor, except that the adjustment may occur only if the
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resulting amount is greater than the corresponding amount that was calculated for
the previous year.
SECTION 31. 71.06 (2e) (be) of the statutes, as created by 2023 Wisconsin Act
.... (this act), is repealed.
SECTION 32. 71.06 (2e) (bm) of the statutes is created to read:
71.06 (2e) (bm) 1. For taxable years beginning after December 31, 2023, 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. (1r) (b) 1.
and 2. and (2) (L) 1. and 2. and (Lm) 1. and 2., 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 1997, 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.
2. For taxable years beginning after December 31, 2023, 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. (1r) (b) 3. and (2) (L) 3. and
(Lm) 3., and the dollar amount in the top bracket under subs. (1r) (b) 4. and (2) (L)
4. and (Lm) 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 2008, as determined
by the federal department of labor, except that the adjustment may occur only if the
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resulting amount is greater than the corresponding amount that was calculated for
the previous year.
SECTION 33. 71.06 (2e) (bm) of the statutes, as created by 2023 Wisconsin Act
.... (this act), is repealed.
SECTION 34. 71.06 (2e) (bs) of the statutes is created to read:
71.06 (2e) (bs) 1. For taxable years beginning after December 31, 2024, and
before January 1, 2026, the maximum dollar amount in each tax bracket, and the
corresponding minimum dollar amount in the next bracket, under subs. (1r) (c) 1.
and 2. and (2) (m) 1. and 2. and (mm) 1. and 2., 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 1997, 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.
2. For taxable years beginning after December 31, 2024, and before January
1, 2026, the maximum dollar amount in each tax bracket, and the corresponding
minimum dollar amount in the next bracket, under subs. (1r) (c) 3. and (2) (m) 3. and
(mm) 3., and the dollar amount in the top bracket under subs. (1r) (c) 4. and (2) (m)
4. and (mm) 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 2008, as determined
by the federal department of labor, except that the adjustment may occur only if the
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resulting amount is greater than the corresponding amount that was calculated for
the previous year.
SECTION 35. 71.06 (2e) (bs) of the statutes, as created by 2023 Wisconsin Act
.... (this act), is repealed.
SECTION 36. 71.06 (2m) of the statutes is amended to read:
71.06 (2m) RATE CHANGES. If a rate under sub. (1), (1m), (1n), (1p), (1q), (1r),
or (2) 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.
SECTION 37. 71.06 (2m) of the statutes, as affected by 2023 Wisconsin Act ....
(this act), is amended to read:
71.06 (2m) RATE CHANGES. If a rate under sub. (1), (1m), (1n), (1p), (1q), (1r),
or (2) 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.
SECTION 38. 71.06 (2s) (d) of the statutes is amended to read:
71.06 (2s) (d) For taxable years beginning after December 31, 2000, and before
January 1, 2023, with respect to nonresident individuals, including individuals
changing their domicile into or from this state, the tax brackets under subs. (1p), (1q),
and (2) (g), (h), (i), and (j) 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
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domiciled in this state during the entire taxable year, the tax brackets under subs.
(1p), (1q), and (2) (g), (h), (i), and (j) 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.
SECTION 39. 71.06 (2s) (d) of the statutes, as affected by 2023 Wisconsin Act ....
(this act), is amended to read:
71.06 (2s) (d) For taxable years beginning after December 31, 2000, and before
January 1, 2023, with respect to nonresident individuals, including individuals
changing their domicile into or from this state, the tax brackets under subs. (1p), (1q),
and (2) (g), and (h), (i), and (j) 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), and (2) (g), and (h), (i), and (j) 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.
SECTION 40. 71.06 (2s) (e) of the statutes is created to read:
71.06 (2s) (e) For taxable years beginning after December 31, 2022, and before
January 1, 2024, with respect to nonresident individuals, including individuals
changing their domicile into or from this state, the tax brackets under subs. (1r) (a)
and (2) (k) and (km) shall be multiplied by a fraction, the numerator of which is
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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.
(1r) (a) and (2) (k) and (km) 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.
SECTION 41. 71.06 (2s) (e) of the statutes, as created by 2023 Wisconsin Act ....
(this act), is repealed.
SECTION 42. 71.06 (2s) (f) of the statutes is created to read:
71.06 (2s) (f) For taxable years beginning after December 31, 2023, and before
January 1, 2025, with respect to nonresident individuals, including individuals
changing their domicile into or from this state, the tax brackets under subs. (1r) (b)
and (2) (L) and (Lm) 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.
(1r) (b) and (2) (L) and (Lm) 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.
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SECTION 43. 71.06 (2s) (f) of the statutes, as created by 2023 Wisconsin Act ....
(this act), is repealed.
SECTION 44. 71.06 (2s) (g) of the statutes is created to read:
71.06 (2s) (g) For taxable years beginning after December 31, 2024, and before
January 1, 2026, with respect to nonresident individuals, including individuals
changing their domicile into or from this state, the tax brackets under subs. (1r) (c)
and (2) (m) and (mm) 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.
(1r) (c) and (2) (m) and (mm) 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.
SECTION 45. 71.06 (2s) (g) of the statutes, as created by 2023 Wisconsin Act ....
(this act), is repealed.
SECTION 46. 71.125 (1) of the statutes is amended to read:
71.125 (1) Except as provided in sub. (2), the tax imposed by this chapter on
individuals and the rates under s. 71.06 (1), (1m), (1n), (1p), (1q), (1r), and (2) shall
apply to the Wisconsin taxable income of estates or trusts, except nuclear
decommissioning trust or reserve funds, and that tax shall be paid by the fiduciary.
SECTION 47. 71.125 (1) of the statutes, as affected by 2023 Wisconsin Act ....
(this act), is amended to read:
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71.125 (1) Except as provided in sub. (2), the tax imposed by this chapter on
individuals and the rates under s. 71.06 (1), (1m), (1n), (1p), (1q), (1r), and (2) shall
apply to the Wisconsin taxable income of estates or trusts, except nuclear
decommissioning trust or reserve funds, and that tax shall be paid by the fiduciary.
SECTION 48. 71.125 (2) of the statutes is amended to read:
71.125 (2) Each electing small business trust, as defined in section 1361 (e) (1)
of the Internal Revenue Code, is subject to tax at the highest rate under s. 71.06 (1),
(1m), (1n), (1p), or (1q), or (1r), whichever taxable year is applicable, on its income
as computed under section 641 of the Internal Revenue Code, as modified by s. 71.05
(6) to (12), (19) and (20).
SECTION 49. 71.125 (2) of the statutes, as affected by 2023 Wisconsin Act ....
(this act), is amended to read:
71.125 (2) Each electing small business trust, as defined in section 1361 (e) (1)
of the Internal Revenue Code, is subject to tax at the highest rate under s. 71.06 (1),
(1m), (1n), (1p), (1q), or (1r), whichever taxable year is applicable, on its income as
computed under section 641 of the Internal Revenue Code, as modified by s. 71.05
(6) to (12), (19) and (20).
SECTION 50. 71.17 (6) of the statutes is amended to read:
71.17 (6) FUNERAL TRUSTS. If a qualified funeral trust makes the election under
section 685 of the Internal Revenue Code for federal income tax purposes, that
election applies for purposes of this chapter and each trust shall compute its own tax
and shall apply the rates under s. 71.06 (1), (1m), (1n), (1p), or (1q), or (1r).
SECTION 51. 71.17 (6) of the statutes, as affected by 2023 Wisconsin Act .... (this
act), is amended to read:
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71.17 (6) FUNERAL TRUSTS. If a qualified funeral trust makes the election under
section 685 of the Internal Revenue Code for federal income tax purposes, that
election applies for purposes of this chapter and each trust shall compute its own tax
and shall apply the rates under s. 71.06 (1), (1m), (1n), (1p), (1q), or (1r).
SECTION 52. 71.64 (9) (b) (intro.) of the statutes is amended to read:
71.64 (9) (b) (intro.) The department shall from time to time adjust the
withholding tables to reflect any changes in income tax rates, any applicable surtax
or any changes in dollar amounts in s. 71.06 (1), (1m), (1n), (1p), (1q), (1r), and (2)
resulting from statutory changes, except as follows:
SECTION 53. 71.64 (9) (b) (intro.) of the statutes, as affected by 2023 Wisconsin
Act .... (this act), is amended to read:
71.64 (9) (b) (intro.) The department shall from time to time adjust the
withholding tables to reflect any changes in income tax rates, any applicable surtax
or any changes in dollar amounts in s. 71.06 (1), (1m), (1n), (1p), (1q), (1r), and (2)
resulting from statutory changes, except as follows:
SECTION 54. 71.67 (5) (a) of the statutes is amended to read:
71.67 (5) (a) Wager winnings. A person holding a license to sponsor and
manage races under s. 562.05 (1) (b) or (c) shall withhold from the amount of any
payment of pari-mutuel winnings under s. 562.065 (3) (a) or (3m) (a) an amount
determined by multiplying the amount of the payment by the highest rate applicable
to individuals under s. 71.06 (1) (a) to (c), (1m), (1n), (1p), or (1q), or (1r) if the amount
of the payment is more than $1,000.
SECTION 55. 71.67 (5) (a) of the statutes, as affected by 2023 Wisconsin Act ....
(this act), is amended to read:
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71.67 (5) (a) Wager winnings. A person holding a license to sponsor and
manage races under s. 562.05 (1) (b) or (c) shall withhold from the amount of any
payment of pari-mutuel winnings under s. 562.065 (3) (a) or (3m) (a) an amount
determined by multiplying the amount of the payment by the highest rate applicable
to individuals under s. 71.06 (1) (a) to (c), (1m), (1n), (1p), (1q), or (1r) if the amount
of the payment is more than $1,000.
SECTION 56. 71.67 (5m) of the statutes is amended to read:
71.67 (5m) WITHHOLDING FROM PAYMENTS TO PURCHASE ASSIGNMENT OF LOTTERY
PRIZE. A person that purchases an assignment of a lottery prize shall withhold from
the amount of any payment made to purchase the assignment the amount that is
determined by multiplying the amount of the payment by the highest rate applicable
to individuals under s. 71.06 (1) (a) to (c), (1m), (1n), (1p), or (1q), or (1r). Subsection
(5) (b), (c) and (d), as it applies to the amounts withheld under sub. (5) (a), applies
to the amount withheld under this subsection.
SECTION 57. 71.67 (5m) of the statutes, as affected by 2023 Wisconsin Act ....
(this act), is amended to read:
71.67 (5m) WITHHOLDING FROM PAYMENTS TO PURCHASE ASSIGNMENT OF LOTTERY
PRIZE. A person that purchases an assignment of a lottery prize shall withhold from
the amount of any payment made to purchase the assignment the amount that is
determined by multiplying the amount of the payment by the highest rate applicable
to individuals under s. 71.06 (1) (a) to (c), (1m), (1n), (1p), (1q), or (1r). Subsection
(5) (b), (c) and (d), as it applies to the amounts withheld under sub. (5) (a), applies
to the amount withheld under this subsection.
SECTION 58. 73.03 (71) of the statutes is repealed.
SECTION 59. 73.03 (71) (c) 2. of the statutes is amended to read:
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73.03 (71) (c) 2. No later than October 20, 2020, the secretary of revenue shall
certify and report the determinations made under pars. (a) 2. and (b) 2. to the
secretary of the department of administration, the governor, the joint committee on
finance, and the legislative audit bureau and specify with that certification and
report that the new tax rates take effect for the taxable year beginning after
December 31, 2019, and before January 1, 2021, and for each taxable year thereafter
beginning after December 31, 2020, and before January 1, 2023, subject to par. (d)
2.
SECTION 60. 73.03 (71) (d) 2. of the statutes is amended to read:
73.03 (71) (d) 2. The legislative audit bureau shall review the determinations
reported under par. (c) 2. and report its findings to the joint legislative audit
committee and the joint committee on finance no later than November 1, 2020. If the
legislative audit bureau's review of the determinations reported under par. (c) 2.
results in a different calculation of the tax rates than that made under par. (b) 2., the
joint committee on finance shall determine which tax rates to apply to the taxable
year beginning after December 31, 2019, and before January 1, 2021, and to each
taxable year thereafter beginning after December 31, 2020, and before January 1,
2023, and report its determination to the governor, the secretary of administration,
and the secretary of revenue no later than November 10, 2020.
SECTION 61.0Nonstatutory provisions.
(1) WITHHOLDING TABLE ADJUSTMENTS FOR 2024. No later than October 1, 2023,
the department of revenue shall update the individual income tax withholding tables
under s. 71.64 (9) to reflect the tax rates, brackets, and sliding scale standard
deduction that are in effect for taxable year 2024. The adjustments made under this
subsection to the withholding tables shall take effect on January 1, 2024.
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SECTION 61 ASSEMBLY BILL 1
(2) WITHHOLDING TABLE ADJUSTMENTS FOR 2025. No later than October 1, 2024,
the department of revenue shall update the individual income tax withholding tables
under s. 71.64 (9) to reflect the tax rates, brackets, and sliding scale standard
deduction that are in effect for taxable year 2025. The adjustments made under this
subsection to the withholding tables shall take effect on January 1, 2025.
(3) WITHHOLDING TABLE ADJUSTMENTS FOR 2026. No later than October 1, 2025,
the department of revenue shall update the individual income tax withholding tables
under s. 71.64 (9) to reflect the tax rate and sliding scale standard deduction that is
in effect for taxable year 2026. The adjustments made under this subsection to the
withholding tables shall take effect on January 1, 2026.
SECTION 62.0Effective dates. This act takes effect on the day after publication,
except as follows:
(1) The treatment of ss. 71.06 (1q) (by SECTION 2), (2) (i) (by SECTION 10) and (j)
(by SECTION 12), (2e) (a) (by SECTION 27) and (b) (by SECTION 29), (2m) (by SECTION 37),
and (2s) (d) (by SECTION 39), 71.125 (1) (by SECTION 47) and (2) (by SECTION 49), 71.17
(6) (by SECTION 51), 71.64 (9) (b) (intro.) (by SECTION 53), 71.67 (5) (a) (by SECTION 55)
and (5m) (by SECTION 57), and 73.03 (71) (by SECTION 58) takes effect on January 1,
2029.
(2) The treatment of s. 71.06 (1r) (a) (by SECTION 5), (2) (k) (by SECTION 14) and
(km) (by SECTION 16), (2e) (be) (by SECTION 31), and (2s) (e) (by SECTION 41) takes effect
on January 1, 2030.
(3) The treatment of s. 71.06 (1r) (b) (by SECTION 6), (2) (L) (by SECTION 18) and
(Lm) (by SECTION 20), (2e) (bm) (by SECTION 33), and (2s) (f) (by SECTION 43) takes
effect on January 1, 2031.
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(4) The treatment of s. 71.06 (1r) (title) (by SECTION 3), (c) (by SECTION 7), and
(d) (by SECTION 8), (2) (m) (by SECTION 22) and (mm) (by SECTION 24), (2e) (bs) (by
SECTION 35), and (2s) (g) (by SECTION 45) takes effect on January 1, 2032.
(END)
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