No question is asked more often of WISTAX researchers by the public and press than: How does Wisconsin’s tax burden compare with other states? And no issue is more debated by partisans and interest group advocates at the State Capitol.
Two reliable tax rankings
Based on the most recent national data available (fiscal year 2004) from the most commonly used source (U.S. Census Bureau), facts show that Wisconsin state and local taxes claimed 12.2% of personal income, the sixth-highest percentage in the nation. The U.S. average was 11.0%.
An equally useful ranking results if population, rather than income, is used. State-local taxes here totalled $3,714 per capita in 2004, or 12th highest. The U.S. average was $3,447. Because Wisconsin per capita income is below the national average, tax rankings based on population are generally lower than those based on income.