Wisconsin

Wisconsin adopts the IRC as amended to December 31, 2022 for tax years beginning after December 31, 2022

“for taxable years beginning after December 31, 2022, for individuals and fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, "Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 2022.”

Note: Fixed-date (static) conformity, operative date December 31, 2022. Wisconsin separately allows a 30% (60% farm) long-term capital gains exclusion (see wi-character), but the base ties to this date.

Wisconsin imposes no estate tax for deaths after December 31, 2007

“There is no estate tax for decedents dying after December 31, 2007.”

Note: Same page: 'There is no Wisconsin inheritance tax for decedents dying on or after January 1, 1992.'

Wisconsin top income tax rate is 7.65% on income above $431,060 (MFJ, TY2025; Act 15 widened brackets)

“For taxable years beginning on or after January 1, 2024, a Wisconsin income tax is imposed at the rates of: 3.5% on income to $19,580; 4.4% from $19,581 to $67,300; 5.3% from $67,301 to $431,060; and 7.65% above $431,060, for married individuals filing a joint return.”

Note: Act 15 (2023) widened the 4.4% bracket; MFJ 4.4% bracket extends to $67,300. Sliding standard deduction max $25,110 MFJ phasing to $0 at $155,169 effectively $0 shelter for large capital-gain filers.

Wisconsin 30% exclusion of net long-term capital gain from Wisconsin taxable income

“From Wisconsin adjusted gross income there may be subtracted 30 percent of the net capital gain from assets held for more than one year that is included in federal adjusted gross income for the taxable year, as computed on Schedule WD.”

Note: The exclusion is computed after federal §1222 netting (Schedule WD), so ST losses erode the excluded base equally. For farm property: 60% exclusion (Wis. Stat. §71.05(6)(b)9m). Both loss characters reduce the excluded base proportionally harvest rule ties for an all-LT estimand. Act 15 (2023) widened the 4.4% bracket. Prior $500 annual loss limit was repealed effective TY2023; current $3,000/$1,500 limit is correctly encoded in WI_CARRYFORWARD.

Wisconsin capital loss carryforward is indefinite (own Schedule WD Part V computation)

“Net capital losses may be carried over to subsequent taxable years.”

Note: Wisconsin computes its own carryforward on Schedule WD (not simply copying federal). The $3,000 annual limit against ordinary income now applies (TY2023+; prior $500 limit repealed).

WI taxes both in-state and out-of-state muni bond interest add-back of all non-federal-AGI interest

“The amount of any interest, except interest under par. (b) 1., less related expenses, which is not included in federal adjusted gross income, and except the amount of any interest or original issue discount derived from bonds issued under subch. IV of ch. 18.”

Note: §71.05(6)(a)1 adds back all interest not included in federal AGI. The only exception is WI Chapter 18 Subchapter IV bonds (a narrow higher-education program). Standard Wisconsin general obligation bonds and all out-of-state muni bonds are taxable. WI is one of two states (with IL) that taxes its own bonds as the default rule.

WI taxes both in-state and out-of-state muni bond interest add-back of all non-federal-AGI interest

“The amount of any interest, except interest under par. (b) 1., less related expenses, which is not included in federal adjusted gross income, and except the amount of any interest or original issue discount derived from bonds issued under subch. IV of ch. 18.”

Note: §71.05(6)(a)1 adds back all interest not included in federal AGI. The only exception is WI Chapter 18 Subchapter IV bonds (a narrow higher-education program). Standard Wisconsin general obligation bonds and all out-of-state muni bonds are taxable. WI is one of two states (with IL) that taxes its own bonds as the default rule.

Wisconsin conforms to IRC §1400Z-2 QOZ gain deferral and exclusion

“From Wisconsin adjusted gross income there may be subtracted an amount equal to the amount excluded from gross income under section 1400Z-2 of the Internal Revenue Code for gain from a qualifying investment in a qualified opportunity fund.”

Note: Wisconsin 2017 Wis. Act 231 enacted explicit QOZ conformity (Wis. Stat. §71.05(25m)) effective for investments in federal opportunity zones.

Wisconsin conforms to IRC §1202 QSBS gain exclusion

“The treatment of gain from the sale or exchange of qualified small business stock under section 1202 of the Internal Revenue Code, as amended, applies for Wisconsin income tax purposes to the same extent as under federal law.”

Note: Wisconsin 2023 Wis. Act 36 enacted explicit QSBS conformity (Wis. Stat. §71.98(5)); federally excluded §1202 gain is also excluded from Wisconsin income.

Wisconsin taxes FNMA and FHLMC bond interest: the §71.05(6)(a)1 add-back mechanism only affects interest excluded from federal AGI; FNMA/FHLMC interest is in federal AGI and thus in the Wisconsin income base

“The amount of any interest, except interest under par. (b) 1., less related expenses, which is not included in federal adjusted gross income.”

Note: FNMA and FHLMC bond interest is INCLUDED in federal adjusted gross income; it is not exempt from federal tax. Wisconsin's §71.05(6)(a)1 only adds back interest NOT in federal AGI. Because FNMA/FHLMC interest is already in the Wisconsin income base, no separate addition is needed and no subtraction is available (no federal preemption statute exists). The 30% LT gain exclusion (§71.05(6)(b)9) applies only to capital gains, not interest income.

Wisconsin top income tax rate is 7.65% on income above $431,060 (MFJ, TY2025; Act 15 widened brackets)

“For taxable years beginning on or after January 1, 2024, a Wisconsin income tax is imposed at the rates of: 3.5% on income to $19,580; 4.4% from $19,581 to $67,300; 5.3% from $67,301 to $431,060; and 7.65% above $431,060, for married individuals filing a joint return.”

Note: Act 15 (2023) widened the 4.4% bracket; MFJ 4.4% bracket extends to $67,300. Sliding standard deduction max $25,110 MFJ phasing to $0 at $155,169 effectively $0 shelter for large capital-gain filers.

U.S. Treasury interest exempt from Wisconsin income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations

“Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.”

Note: 31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.

FHLB and FFCB bond interest exempt from Wisconsin income tax: federal enabling statutes mandate state tax exemption

“Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.”

Note: 12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.

Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation

“The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).”

Note: 12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.

IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback

“In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.”

Note: IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.

Wisconsin is a community property state under the Marital Property Act: property acquired during marriage is marital property (Wis. Stat. § 766.31)

“All property of spouses is marital property except that which is classified otherwise under this chapter.”

Note: Wisconsin adopted the Uniform Marital Property Act in 1986. The Wisconsin Marital Property Act is functionally equivalent to community property and is recognized as such by the IRS for federal income tax purposes. Wis. Stat. § 766.31 is the primary classification rule. Wisconsin treats marital property the same as community property for federal (and Wisconsin) income tax filing.

Wisconsin top income tax rate is 7.65% on income above $431,060 (MFJ, TY2025; Act 15 widened brackets)

“For taxable years beginning on or after January 1, 2024, a Wisconsin income tax is imposed at the rates of: 3.5% on income to $19,580; 4.4% from $19,581 to $67,300; 5.3% from $67,301 to $431,060; and 7.65% above $431,060, for married individuals filing a joint return.”

Note: Act 15 (2023) widened the 4.4% bracket; MFJ 4.4% bracket extends to $67,300. Sliding standard deduction max $25,110 MFJ phasing to $0 at $155,169 effectively $0 shelter for large capital-gain filers.

Wisconsin capital loss carryforward is indefinite (own Schedule WD Part V computation)

“Net capital losses may be carried over to subsequent taxable years.”

Note: Wisconsin computes its own carryforward on Schedule WD (not simply copying federal). The $3,000 annual limit against ordinary income now applies (TY2023+; prior $500 limit repealed).