Wisconsin sits in the northern United States. To reach the Canadian border, you have to cross either Michigan or Minnesota. Its other neighbors are Iowa to the west and Illinois to the south. The capital of this state of roughly 170,000 km² is Madison. The "Badger State" is home to almost 5.8 million people. Its largest city is Milwaukee, with 600,000 residents.
With a compelling mix of geography, natural resources, infrastructure and talent, Wisconsin is uniquely placed to help businesses reach their goals. Building on a strong work ethic that has made it one of the leading states in manufacturing and agriculture, Wisconsin is focused on excelling and expanding in its key industries.
Constant progress
Its location, with access to abundant fresh water and natural resources, gave Wisconsin an excellent start for industrial success. A business climate that encourages and rewards production and innovation, together with a skilled workforce, has put the state at the top in technology-driven industries today. Wisconsin is busy challenging conventions, moving industry forward and backing businesses.
Wisconsin has not abandoned its strong farming tradition; it has developed and expanded it. The result is outstanding strength in the food and beverage industry.
Its discoveries in biotechnology keep improving health and quality of life around the world. The state has also invested in centers of excellence for water research, energy technology, connected systems and biohealth to tackle the challenges of sustainable resource management worldwide.
Heavy investment in research and development
Wisconsin has a real passion for asking questions, testing limits, measuring results and making change happen. That is the driving force behind its first-class research and development.
This culture of discovery is fueled by more than a billion dollars a year in academic research and development. The state is committed to building the technologies and innovations of tomorrow, and businesses get the best possible support, whether through talent, programs or connections, so they can achieve great things. In Wisconsin, the biggest successes rest on partnerships between researchers, businesses and policymakers.
By the way, you can find the 10 most popular US states for foreign direct investment here.
A leader in manufacturing
The state brings its strengths to growing markets such as advanced engineering and materials science. 16 percent of the state's workforce is employed in manufacturing, the second-highest concentration in the entire US. The concentration of skilled workers is often three to four times higher than in competing states.
Technological advances by Wisconsin manufacturers in electrical equipment, metals and other fields have shaped industry trends in productivity and sustainability. These successes are vital to the local economy: in fact, 85 percent of Wisconsin's exports are manufactured goods.
On top of that, industry organizations and partners in academia and the public sector work hard to foster collaboration, so industry-leading innovations reach the market faster in Wisconsin. Together with a low cost of living, these factors make Wisconsin an ideal location for manufacturers of every kind.
Income tax in Wisconsin
Wisconsin levies an income tax of 3.5 to 7.65%, depending on income. On top of that, federal income tax is due.
Corporate tax in Wisconsin
Wisconsin levies a corporate tax of 7.9%. On top of that, federal corporate tax is due.
Sales tax in Wisconsin
The USA has no VAT on the European model. Instead, states, counties and municipalities levy a local sales tax on the sale of goods (but not services).
Sales tax rate in Wisconsin
The state sales tax in Wisconsin is 5%. Most counties add 0.5%; Milwaukee County adds 0.9%, and the City of Milwaukee adds another 2%. So the combined rate is usually 5.5%.
Wisconsin nexus laws & sales tax
Learn more about economic nexus laws and sales tax.
Effective date
October 1, 2018
Included transactions:
Annual gross sales of tangible personal property and services into the state
Treatment of exempt sales:
Exempt sales and exempt services count toward the threshold; businesses making only non-taxable sales in Wisconsin do not need to register for a sales tax account
Trigger:
Sales only (the 200-transaction threshold was removed effective February 20, 2021)
Sales/transaction threshold:
$100,000 (200-transaction threshold removed effective February 20, 2021)
Evaluation period:
Previous or current calendar year (based on the remote seller's tax year for federal income tax purposes); before February 20, 2021, based on the remote seller's tax year for federal income tax purposes.
Additional information:
- Registration requirements: A remote business must register and start collecting Wisconsin sales tax once it exceeds the economic nexus threshold. For more information, see Registration and collection dates for remote sellers.
- Information for remote sellers
- Wisconsin Act 368
- Assembly Bill 2
Wisconsin marketplace sellers & sales tax
Learn more about registration requirements for marketplace sellers
Effective date for marketplace facilitators:
January 1, 2020
Economic nexus threshold:
More than $100,000 in gross sales in the state in the current or previous calendar year (a transaction threshold was repealed effective February 20, 2021). Remote sellers should include sales made through a marketplace when calculating the threshold.
Registration requirements:
- Remote multichannel sellers: Once you exceed the economic nexus threshold, you must register with the Wisconsin Department of Revenue and collect Wisconsin sales tax on sales not taxed by a marketplace facilitator.
- Remote marketplace sellers: You do not need to register, even if you exceed the economic nexus threshold. Contact the Wisconsin Department of Revenue for more information.
- In-state multichannel sellers: You must register with the Wisconsin Department of Revenue and collect tax on sales not taxed by a marketplace facilitator.
- In-state marketplace sellers: You must register. Contact the Wisconsin Department of Revenue for more information.
- Learn more here.
For a look at every state, see our overview of the US states. Whether Wisconsin or another state is the right home for your US company is covered in the guide Which US state is best for your company?, and you will find the basics in our guide to forming a company in the USA.
How we help with Wisconsin:
If Wisconsin is to become your market, it starts with the right structure. Under US company formation you will find legal forms and states with prices; in a consultation we work out which fits you.