Weekly Fiscal Facts are provided to Wisconsin Newspaper Association members by the Wisconsin Policy Forum, the state’s leading resource for nonpartisan state and local government research and civic education. The Wisconsin Policy Forum logo can be downloaded here.
State and local taxes fell once again as a share of Wisconsinites’ incomes in 2024, pushing this ratio — known as the state and local tax burden — to its lowest level since at least 1970.
This ratio between what Wisconsin residents pay in all state and local taxes and what they receive in income from all sources fell from 9.92% in 2023 to 9.62% in 2024. The decrease reflects continued growth in incomes in the state, plus aggressive efforts by the state to hold down local property taxes.
Each year, the Wisconsin Policy Forum examines every local and state tax paid, from the fees paid by dry cleaners ($369,050 in 2024) to gross local property taxes ($13.09 billion). To these fiscal year 2024 figures, we compare state personal income data from the prior calendar year, in this case 2023, to calculate the tax burden.
Overall, state and local tax revenues grew by 1.9% in 2024, rising to $36.9 billion from $36.2 billion in 2023. That lagged the rate of inflation and was the smallest increase since 2017. Meanwhile, income growth easily outstripped growth in tax collections, as personal income in calendar year 2023 grew by 5.2% — double the increase seen the previous year. However, as it has in every year since 2009, personal income growth in Wisconsin lagged the national average, which this year was 5.9%.
Combined local government tax revenues, those collected by municipalities, counties, school districts, and technical college and special districts, grew 2.7% in 2024, to $12.28 billion. Revenue from gross local property taxes – the largest single tax in Wisconsin – grew by 4.6% in 2024, the most since 2008. The increase reflected referenda approved by voters and the end to the state’s freeze on school district revenue limits.
Total state tax collections grew to $24.65 billion in fiscal year 2024 from $24.27 billion in the prior year. This 1.6% annual increase was the smallest since 2020. Most of these revenues come from individual income tax collections, which rose by 3.2%, from $9.42 billion in 2023 to $9.72 billion in 2024. Growth in income tax collections has been restrained by tax cuts included in the 2021-23 and 2023-25 state budgets.
Corporate income tax collections fell, dropping 1.7% from $2.75 billion in 2023 to $2.70 billion in 2024. Sales tax collections climbed 1.8% in 2024 to $7.59 billion – the slowest year-over-year growth rate since 2010. This came as inflation is now receding after several straight years in which it drove up sales tax revenues rapidly.
It is worth noting that elected leaders in Wisconsin in recent years have focused on holding down the property tax, individual income tax, and motor fuel tax, but there have been fewer major cuts or decreases to sales taxes, and some increases. As a result, sales taxes have made up a larger share of total state and local tax collections over time, from just under 12% in 1970 to 22.4% in 2024.
Overall, the state and local tax burden in Wisconsin has fallen to a record low. Since 2000, no other state has seen a comparable decline in state and local taxes as a share of income. Going forward, some combination of economic expansion and more efficient government will likely be needed to maintain good quality public services while keeping state and local taxes affordable.
This information is provided to Wisconsin Newspaper Association members as a service of the Wisconsin Policy Forum, the state’s leading resource for nonpartisan state and local government research and civic education. Learn more at wispolicyforum.org.
