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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 seamlessly. With a background in finance, he often finds himself advising stores on sales tax and good financial systems.
January 22, 2024 Reviewed by
Kevin is a licensed CPA in the state of California. Prior to Numeral, Kevin operated multiple ecommerce businesses and worked at KPMG as a tax advisor.
Stay tax-savvy with our Wisconsin Sales Tax Guide, your resource for compliance, rates, and business regulations
In this articleStay tax-savvy with our Wisconsin Sales Tax Guide, your resource for compliance, rates, and business regulations
| State taxing authority | Wisconsin Department of Revenue |
|---|---|
| Wisconsin base sales tax rate | 5% |
| Local tax rates | Vary by locality, up to 1.5% |
| 2023 Wisconsin sales tax rate | 5% - 6.5% |
| Tax threshold | $100,000 in sales |
| Website | revenue.wi.gov |
| Tax Line | (608) 266-2776 |
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%.
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.
| City | Sales Tax Rate |
|---|---|
| Madison | 5.5% |
| Milwaukee | 5.6% |
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.
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.
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.
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.
Yes, Wisconsin is a full member state of the Streamlined Sales and Use Tax Agreement (SSUTA).
| Type of nexus | Threshold |
|---|---|
| Physical presence | Any physical presence, including office, place of business, and employees in the state. Ownership of real or personal property |
| Economic nexus | $100,000 in sales or 200 transactions |
| Nexus with marketplaces | Marketplace facilitator laws |
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.
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.
Wisconsin provides sales tax exemptions on many items, including:
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.
Clothing is taxable under Wisconsin sales tax. This includes shirts, pants, coats, shoes, belts, underwear, diapers, and other apparel items.
Yes, digital products like software downloads, Streaming media, ebooks, music downloads, apps, and more are generally taxable in Wisconsin.
No, SaaS and other online services are not subject to Wisconsin sales tax.
Most services are not taxable in Wisconsin. However, some specific services like landscaping, pet grooming, and investigative services are taxable.
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.
Wisconsin does not have a general sales tax on food and beverages. However, there are excise taxes on some specific items:
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.
Wisconsin has the following prepaid sales tax rates per gallon of fuel:
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 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.
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.
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.
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.
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. .
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.
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.
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:
Payments must be made at the same time the return is filed. Filing and payment deadlines vary based on reporting period.
The following due dates apply to Wisconsin sales tax returns:
Monthly
| Period | Due Date |
|---|---|
| January | Last day of February |
| February | Last day of March |
| March | Last day of April |
| April | Last day of May |
| May | Last day of June |
| June | Last day of July |
| July | Last day of August |
| August | Last day of September |
| September | Last day of October |
| October | Last day of November |
| November | Last day of December |
| December | Last day of January |
Quarterly
| Period | Due Date |
|---|---|
| Jan – Mar (Q1) | Last day of April |
| Apr – Jun (Q2) | Last day of July |
| Jul – Sep (Q3) | Last day of October |
| Oct – Dec (Q4) | Last day of January |
Annual
| Period | Due Date |
|---|---|
| Jan – Dec | Last day of January |
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.
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.
Yes, even with $0 sales tax collected you must file a Wisconsin return for every period to avoid late penalties.
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.
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.
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.
The steps in a Wisconsin sales tax audit are:
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.
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.
Follow these steps to register for a Wisconsin seller's permit:
There is a one-time $20 registration fee when applying for a new seller’s permit 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.
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.
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 seamlessly. With a background in finance, he often finds himself advising stores on sales tax and good financial systems.
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