As a consumer or business owner in Wisconsin, it's essential to grasp the state's sales tax laws to ensure compliance and minimize tax liabilities. Wisconsin’s sales tax system is a crucial part of the state's economy, affecting both consumers and businesses. Wisconsin Sales Tax cover the essentials of Wisconsin's sales tax, including its rates, exemptions, and how to file and pay it.
Sales tax is a tax imposed on the sale of goods and certain services in Wisconsin. The state’s base sales tax rate is 5%, but many counties and municipalities impose additional local taxes, making the total sales tax rate in some areas higher.
State rate: 5%
Average local rate: 0.34%
Highest combined rate: 5.6% (in certain municipalities)
Lowest combined rate: 5% (in areas with no local tax)
Businesses must file sales tax returns and remit payments:
File online or by mail
Quarterly or monthly filing options
Payment due dates: 20th day of the month following the reporting period
Before you can collect sales tax, you need to register for a sales tax permit with the Wisconsin Department of Revenue (DOR). You can do this online through the "Wisconsin Sales Tax" portal.
Once registered, collect sales tax on all taxable sales. The state sales tax rate is 5%, with an additional 0.5% in counties that impose a local sales tax.
Log in to your My Tax Account.
Navigate to the File a Return section.
Select the appropriate tax period and complete the sales tax return form by entering your total sales, taxable sales, and the amount of sales tax collected.
After filing your return, you can make a payment directly through My Tax Account.
Choose your preferred payment method (e.g., electronic funds transfer, credit/debit card, or check).
Follow the prompts to complete your payment.
Once you have filed your return and made your payment, you will receive a confirmation. Keep this for your records.
Ensure you file and pay your sales tax on time to avoid penalties. The filing frequency (monthly, quarterly, or annually) depends on your total sales volume.