Ultimate Wisconsin Sales Tax Guide

Dealing with Wisconsin's sales tax system can seem challenging — but it doesn’t have to be. 

In this Wisconsin sales tax guide, we’ll cover everything you need to know—from calculating sales tax to understanding use tax information and exemption rules. 

We’ll also recommend a reliable solution to streamline your sales tax filing process and keep you compliant in Wisconsin and across the United States.

Wisconsin Sales Tax Rate Range 2024

Wisconsin has a state sales tax rate of 5%. Additionally, counties can impose up to a 0.9% tax.

For instance, Prairie Du Chien City has a sales tax rate of 5.5%. This rate includes the Wisconsin state sales tax of 5% and the 0.5% Crawford County sales tax.

How to Calculate Sales Tax in Wisconsin

To calculate your sales tax in Wisconsin, you’ll have to add these rates:

• State sales tax
• County sales tax
• City sales tax

For instance, let’s calculate the total sales tax in the City of Milwaukee, in Milwaukee County :

• Wisconsin state sales tax rate of 5%
• Milwaukee County sales tax of 0.9%
• Milwaukee City sales tax rate of 2%

This brings the total sales tax rate to 7.9%, the state's highest sales tax rate.

Sales Tax Rates in Wisconsin by County

Here are the sales tax rates of the most populated counties in Wisconsin:

Collecting Wisconsin Sales Tax from Customers

Let’s explore how you can collect Wisconsin state sales tax.

Do I Have to Collect Wisconsin Sales Tax from Customers?

If you meet these two requirements, then you’re liable to collect tax on sales revenue in Wisconsin: 

• You have sales tax nexus in Wisconsin.
• You sell taxable products or services in Wisconsin.

What Creates a Sales Tax Nexus in Wisconsin?

You have sales tax nexus in Wisconsin if you meet one of the following conditions:

• Economic Nexus: Out-of-state businesses whose gross sales into Wisconsin exceed $100,000 in the previous or current calendar year. 
• Physical Location: Businesses with employees or other personnel, a physical location, inventory, and other in-state business activities. 
• Events:  An out-of-state seller making sales at a temporary event in Wisconsin is liable for sales and use tax on its taxable sales. If the seller has no further business activity in the state after the end of their tax year, they may inactivate their Wisconsin seller’s permit. If a seller does not make any sales at the event itself but promotes future sales, the seller is still liable for tax on Wisconsin sales through the end of the seller’s tax year. A seller with an active seller’s permit remains liable for Wisconsin sales tax.

Learn more about sales tax nexus and when you’re required to collect sales tax.

Do I Have to Collect Sales Tax from Wisconsin Customers if I Sell on Amazon, Walmart, Ebay, or Etsy?

No.

Wisconsin has a marketplace facilitator law, which means that marketplaces like Etsy or Amazon are required to collect sales tax on behalf of third-party sellers on their platforms. 

If you have a sales tax nexus in Wisconsin, remember you still need to collect sales tax on your other non-marketplace Wisconsin sales.

Taxable Products in Wisconsin

Wisconsin taxes most tangible personal property and services. Although most food items for home consumption are tax-exempt, products like candy, prepared food, and soft drinks are taxable.

A few services, like cable television and photographic services, are also taxed in the state. 

Let’s take a detailed look at what items are taxed in Wisconsin:

Are Groceries Taxable in Wisconsin? 

Like most states, groceries are not taxable in Wisconsin.

Is Clothing Taxable in Wisconsin?

Yes, clothing is subject to sales tax in Wisconsin.

Are Digital Products Taxable in Wisconsin?

Yes, digital products are taxable in Wisconsin. 

Is Software-as-a-Service (SaaS) Taxable in Wisconsin?

Wisconsin doesn’t collect sales tax on SaaS products unless the service that is being provided is a taxable service (such as telecommunications service). 

Are Services Taxable in Wisconsin?

Some services in Wisconsin are taxable, such as:

• Admissions to amusement, athletic, and other recreational events and the use of amusement devices like arcade machines
• Boat docking and storage
• Cable television services
• Landscaping and lawn services
• Laundry and dry cleaning services
• Lodging - short-term rooms or lodging for less than one month
• Maintenance contracts
• Parking services (motor vehicles and aircraft)
• Photographic services
• Producing, fabricating, and printing
• Telecommunications services
• Towing and hauling of motor vehicles by a tow truck

Read more about service taxability in Wisconsin.

Tax-Exempt Items

Here are some items that have a Wisconsin sales tax exemption:

• Drugs prescribed by a physician for the treatment of a human being.
• Durable medical devices and prosthetics devices, like hearing aids, including repair parts and accessories. 
• Most food and food ingredients, including frozen prepared food sold without utensils or prepared food consisting of more than 50% yogurt. 
• Fuel oil, propane, coal, peat, fuel cubes produced from solid waste, and wood used for fuel, which is sold for residential use. Fuel and electricity sold for farming, agriculture, and horticulture. If you use exempt and non-exempt fuel, you must get a Wisconsin sales tax exemption certificate.
• All newspapers and periodicals sold by subscription and regularly issued at average intervals not exceeding three months.
• Repair and alteration parts for aircraft.
• Animal identification tags sold by the Wisconsin Department of Agriculture, Trade, and Consumer Protection.
• Water delivered by utilities, government agencies, and others through mains. 
• Tangible personal property used exclusively and directly for farming purposes, like tractors.

How to Register for a Wisconsin Sales Tax Permit

You can register for a Wisconsin sales tax permit online through the Department of Revenue's Online Business Tax Registration or the Streamlined Sales Tax Governing Board's website. Or, you can fill out Form BTR-101 and send it to the Department of Revenue. 

Learn how to register for a sales tax or seller's permit in every US state.

Do I Need a Wisconsin Seller's Permit if I Only Sell Temporarily in the State?

Yes. If you are located in Wisconsin, you’re required to register and collect sales tax, even if you’re only making temporary sales. If you are a remote seller, you only need to register and collect sales tax if you have a nexus in Wisconsin.

How to Collect Sales Tax in Wisconsin

Wisconsin is a “destination-based” sales tax sourcing state. This means that when you make taxable sales to an address in Wisconsin from inside or outside the state, you should charge the sales tax rate at the buyer’s ship-to address. 

Find out more about sales tax on shipping in every US state.

How to File and Pay Sales Tax in Wisconsin

Here are some ways you can file Wisconsin sales tax returns:

• File and pay online: File at MyTaxAccount
• Telefile: Call (608) 261-5340 (Madison) or (414) 227-3895 (Milwaukee) to telefile
• Let Zamp handle your Wisconsin sales tax filing and remittance so you never have to look at a sales tax return again!

Explore how you can file and pay sales tax in other US states.

FAQs on Paying and Filing Wisconsin Sales Tax

What Is Use Tax?

You’ll need to pay use tax on items purchased without sales tax. Additionally, if the items are used, stored, or consumed in a county or city that imposes local taxes, you’ll have to pay the combined sales tax as use tax.

For example, if the item is used in Milwaukee City, Milwaukee County, you’ll have to pay the combined sales tax rate of 7.9%.

I Didn’t Collect any Wisconsin Sales Tax During this Period. Do I still Need to File a Return?

Yes. 

You should still file a “zero” return with the state even if you didn’t collect any sales tax over the taxable period.  

What Is the Penalty for Filing and/or Paying Wisconsin Sales Tax Late?

If your return is not filed by the due date, you will be subject to interest on the total sales and use taxes due at the rate of 1.5% per month until the tax is paid. 

Returns filed after the due date are subject to a $20 late filing fee and a negligence penalty equal to 5% of the total sales and use taxes due for each month or a fraction of a month the return is late, with a maximum penalty of 25%.

If a return is not filed and the Wisconsin DOR (Department of Revenue) estimates that you have sales tax due, an estimated assessment may be issued, and the assessment will include a penalty of 25% of the estimated tax.

Additionally, there is interest of 18% per year on any unpaid taxes that are delinquent.

What Is a Retailer’s Discount?

A retailer can deduct a portion of the sales tax they report on a sales and use tax return to cover the costs of reporting and collecting the tax. 

This discount will be only available if the sales tax is reported on time and paid by the due date. You need to meet these conditions to qualify for timely tax payment:

• It’s mailed in a well-addressed envelope with sufficient postage.
• The envelope is postmarked on or before the due date.
• It’s received by the department five days or less after the due date.

However, you can’t claim a retailer’s discount when using a certified service provider who is receiving other compensation as provided under Wisconsin law. 

Does Wisconsin Offer Sales Tax Holidays?

Wisconsin has discontinued sales tax holidays since 2019.

Can I File a Buyer’s Claim for a Sales Tax Refund?

You can submit a claim for refund to the department if you meet any of the following requirements:

• The claim for refund is $50 or more of tax,
• The seller has stopped business operations,
• The buyer is under a field audit, or
• Periods covered in the claim for refund are within the statute of limitation for the buyer but are closed to the seller.

Can I Get an Extension on Filing My Wisconsin Sales Tax Return? 

You may request an extension of time to file by any of the following ways:: 

• Go to My Tax Account and click “Request Extension”
• Email DORTOBWithholdingProcess@wisconsin.gov
• Fax your request to (608) 224-5761
• Mail written request to: 
  • MS 3-80
  • Wisconsin Department of Revenue
  • Tax Operations Business
  • PO Box 8902
  • Madison WI 53708-8902

Remember to request an extension before the due date. The Wisconsin Department of Revenue will notify you if this extension is granted.

Can I Amend a Wisconsin Sales Tax Return? 

Yes. You can amend your return through My Tax Account, where you file your returns.

How Often Do I Need to File and Pay Sales Tax in Wisconsin?

In Wisconsin, your filing frequency is based on your remittances for the 12-month period ending October 31, as follows: 

• Early monthly: $3,601 or more/quarter
• Monthly: $1,201 to $3,600/quarter
• Quarterly: $601 to $1,200/quarter
• Annual: $600/year or less

Sales tax is due on the last day of the month after the taxable period.  However, if the state assigns you an “Early Monthly” filing frequency, your sales tax returns are due on the 20th of the month following the due date.

Wisconsin Sales Tax Due Dates

Wisconsin Monthly Sales Tax Filing Due Dates (For Everyone but “Early Monthly” Filers):

Wisconsin Quarterly Sales Tax Filing Due Dates

Wisconsin Annual Sales Tax Filing Due Date

Wisconsin “Early Monthly” Sales Tax Filing Due Date

Let The Experts Handle Your Wisconsin Sales Taxes

Overwhelmed by sales tax challenges in Wisconsin?

Let Zamp take the burden off your shoulders!

Zamp provides hassle-free onboarding, accurate tax calculations, and one-click registrations and filings.
Looking to streamline your sales tax management? Get started with Zamp today.

About the author

Zamp Team

The Zamp Team consists of experienced writers and editors who are dedicated to researching sales tax topics to help readers make smart decisions about their business and sales tax compliance. Collectively, the team has over 200 years of sales tax experience.