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WI · payroll profile

Wisconsin

Everything an out-of-state employer needs before running a Wisconsin payroll: what to withhold, which form the employee signs, whether reciprocity applies, and who to register with.

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Personal income tax
Graduated to 7.65%
Reciprocal agreements
4 states
SUI wage base 2026
$14,000
Local income taxes
No

Income tax withholding

Imposes wage income tax Yes
Rate structure Graduated, top marginal rate 7.65%
Withholding certificate WT-4
Employee's Wisconsin Withholding Exemption Certificate/New Hire Reporting
Accepts federal Form W-4 No
Convenience-of-the-employer rule No
Nonresident withholding threshold $1,500 of in-state wages
Per Wisconsin Publication 166 (Withholding Tax Guide): an employer need not withhold Wisconsin tax from a nonresident employee where the employer can reasonably expect the employee's annual Wisconsin earnings to be less than $1,500; once the estimate exceeds $1,500 the employer must withhold from wages paid thereafter. Does not apply to interstate air carriers. Wisconsin does NOT accept the federal Form W-4 -- every newly hired employee must complete Form WT-4.
Local income taxes No
No local personal income or wage taxes in Wisconsin.

Reciprocity

Wisconsin exempts residents of 4 states from Wisconsin withholding, provided the employee files W-220 with the employer.

IllinoisIndianaKentuckyMichigan
Confirmed in Wisconsin Publication 121 (Reciprocity): Illinois, Indiana, Kentucky and Michigan only. The Wisconsin-MINNESOTA agreement was TERMINATED effective tax year 2010 and has NOT been reinstated -- do not apply reciprocity between WI and MN. Residents of the four reciprocal states file Form W-220 to stop Wisconsin withholding.

States that exempt Wisconsin residents

A Wisconsin resident working in these states files that state's certificate and is taxed only by Wisconsin.

District of ColumbiaIllinoisIndianaKentuckyMichigan

Unemployment insurance and paid leave

Taxable wage base 2026 $14,000
2025 base was $14,000.
New employer rate 3.05%
2026 uses Schedule D. New-employer rates: 3.05% (non-construction, payroll under $500,000), 2.50% (construction, under $500,000), 3.25% (non-construction, $500,000+) and 2.70% (construction, $500,000+). Minimum rate is 0.00% for employers under $500,000 payroll and 0.05% at or above $500,000. US DOL reports a narrower 0.00%-10.70% range.
Experience rate range 0% – 12%
Experience-rating method reserve ratio
Employee UI contribution No
Paid family / medical leave No

Employer registration

Tax agency
Wisconsin Department of Revenue
UI agency
Wisconsin Department of Workforce Development (DWD)

Sources

revenue.wi.gov · revenue.wi.gov · revenue.wi.gov · oui.doleta.gov · oui.doleta.gov · oui.doleta.gov · dwd.wisconsin.gov

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This is a determination aid, not advice. StateSide encodes published state rules and applies them mechanically to the facts you enter. It does not know your entity structure, your nexus history, your equity compensation, or the dozens of exceptions that turn a clean rule into a judgement call. Every determination cites the state source it came from — verify against that source, and take anything consequential to a payroll tax professional before you act on it.