SB1: Bill Text

4. For the highest bracket, 5.45 percent.

The bill establishes the following rates of taxation for taxable year 2025:

1. For the lowest tax bracket, 3.32 percent.

2. For the second bracket, 3.6 percent.

3. For the third bracket, 3.76 percent.

4. For the highest bracket, 4.35 percent.

Under the bill, for taxable year 2026 and after, the rate of taxation is 3.25 percent for all taxable income. The bill also requires the Department of Revenue to update, by October 1 before the start of the applicable tax year, the individual income tax withholding tables to reflect the tax rates, brackets, and sliding scale standard deduction that are in effect for taxable years 2024, 2025, and 2026.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

SB1,,4 The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB1,1 Section 1. 71.06 (1q) (intro.) of the statutes is amended to read:

SB1,,6 71.06 (1q) Fiduciaries, single individuals, and heads of households; after 2012 2013 to 2022. (intro.) The tax to be assessed, levied, and collected upon the taxable incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and single individuals and heads of households shall be computed at the following rates for taxable years beginning after December 31, 2012, and before January 1, 2023:

SB1,2 Section 2. 71.06 (1q) of the statutes is repealed.

SB1,3 Section 3. 71.06 (1r) (title) of the statutes, as created by 2023 Wisconsin Act .... (this act), is amended to read:

SB1,,9 71.06 (1r) (title) Fiduciaries, single individuals, and heads of households; after 2022 2025.

SB1,4 Section 4. 71.06 (1r) of the statutes is created to read:

SB1,,11 71.06 (1r) Fiduciaries, single individuals, and heads of households; after 2022. (a) The tax to be assessed, levied, and collected upon the taxable incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and single individuals and heads of households shall be computed at the following rates for taxable years beginning after December 31, 2022, and before January 1, 2024:

SB1,,12 1. On all taxable income from $0 to $7,500, 3.47 percent.

SB1,,13 2. On all taxable income exceeding $7,500 but not exceeding $15,000, 4.30 percent.

SB1,,14 3. On all taxable income exceeding $15,000 but not exceeding $225,000, 4.79 percent.

SB1,,15 4. On all taxable income exceeding $225,000, 6.55 percent.

SB1,,16 (b) The tax to be assessed, levied, and collected upon the taxable incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and single individuals and heads of households shall be computed at the following rates for taxable years beginning after December 31, 2023, and before January 1, 2025:

SB1,,17 1. On all taxable income from $0 to $7,500, 3.40 percent.

SB1,,18 2. On all taxable income exceeding $7,500 but not exceeding $15,000, 3.95 percent.

SB1,,19 3. On all taxable income exceeding $15,000 but not exceeding $225,000, 4.28 percent.

SB1,,20 4. On all taxable income exceeding $225,000, 5.45 percent.

SB1,,21 (c) The tax to be assessed, levied, and collected upon the taxable incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and single individuals and heads of households shall be computed at the following rates for taxable years beginning after December 31, 2024, and before January 1, 2026:

SB1,,22 1. On all taxable income from $0 to $7,500, 3.32 percent.

SB1,,23 2. On all taxable income exceeding $7,500 but not exceeding $15,000, 3.60 percent.

SB1,,24 3. On all taxable income exceeding $15,000 but not exceeding $225,000, 3.76 percent.

SB1,,25 4. On all taxable income exceeding $225,000, 4.35 percent.

SB1,,26 (d) The tax to be assessed, levied, and collected upon the taxable incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and single individuals and heads of households shall be computed at the rate of 3.25 percent for taxable years beginning after December 31, 2025.

SB1,5 Section 5. 71.06 (1r) (a) of the statutes, as created by 2023 Wisconsin Act .... (this act), is repealed.

SB1,6 Section 6. 71.06 (1r) (b) of the statutes, as created by 2023 Wisconsin Act .... (this act), is repealed.

SB1,7 Section 7. 71.06 (1r) (c) of the statutes, as created by 2023 Wisconsin Act .... (this act), is repealed.

SB1,8 Section 8. 71.06 (1r) (d) of the statutes, as created by 2023 Wisconsin Act .... (this act), is renumbered 71.06 (1r).

SB1,9 Section 9. 71.06 (2) (i) (intro.) of the statutes is amended to read:

SB1,,32 71.06 (2) (i) (intro.) For joint returns, for taxable years beginning after December 31, 2012, and before January 1, 2023:

SB1,10 Section 10. 71.06 (2) (i) of the statutes is repealed.

SB1,11 Section 11. 71.06 (2) (j) (intro.) of the statutes is amended to read:

SB1,,35 71.06 (2) (j) (intro.) For married persons filing separately, for taxable years beginning after December 31, 2012, and before January 1, 2023:

SB1,12 Section 12. 71.06 (2) (j) of the statutes is repealed.

SB1,13 Section 13. 71.06 (2) (k) of the statutes is created to read:

SB1,,38 71.06 (2) (k) For joint returns, for taxable years beginning after December 31, 2022, and before January 1, 2024:

SB1,,39 1. On all taxable income from $0 to $10,000, 3.47 percent.

SB1,,40 2. On all taxable income exceeding $10,000 but not exceeding $20,000, 4.30 percent.

SB1,,41 3. On all taxable income exceeding $20,000 but not exceeding $300,000, 4.79 percent.

SB1,,42 4. On all taxable income exceeding $300,000, 6.55 percent.

SB1,14 Section 14. 71.06 (2) (k) of the statutes, as created by 2023 Wisconsin Act .... (this act), is repealed.

SB1,15 Section 15. 71.06 (2) (km) of the statutes is created to read:

SB1,,45 71.06 (2) (km) For married persons filing separately, for taxable years beginning after December 31, 2022, and before January 1, 2024:

SB1,,46 1. On all taxable income from $0 to $5,000, 3.47 percent.

SB1,,47 2. On all taxable income exceeding $5,000 but not exceeding $10,000, 4.30 percent.

SB1,,48 3. On all taxable income exceeding $10,000 but not exceeding $150,000, 4.79 percent.

SB1,,49 4. On all taxable income exceeding $150,000, 6.55 percent.

SB1,16 Section 16. 71.06 (2) (km) of the statutes, as created by 2023 Wisconsin Act .... (this act), is repealed.

SB1,17 Section 17. 71.06 (2) (L) of the statutes is created to read:

SB1,,52 71.06 (2) (L) For joint returns, for taxable years beginning after December 31, 2023, and before January 1, 2025:

SB1,,53 1. On all taxable income from $0 to $10,000, 3.40 percent.

SB1,,54 2. On all taxable income exceeding $10,000 but not exceeding $20,000, 3.95 percent.

SB1,,55 3. On all taxable income exceeding $20,000 but not exceeding $300,000, 4.28 percent.

SB1,,56 4. On all taxable income exceeding $300,000, 5.45 percent.

SB1,18 Section 18. 71.06 (2) (L) of the statutes, as created by 2023 Wisconsin Act .... (this act), is repealed.

SB1,19 Section 19. 71.06 (2) (Lm) of the statutes is created to read:

SB1,,59 71.06 (2) (Lm) For married persons filing separately, for taxable years beginning after December 31, 2023, and before January 1, 2025:

SB1,,60 1. On all taxable income from $0 to $5,000, 3.40 percent.

SB1,,61 2. On all taxable income exceeding $5,000 but not exceeding $10,000, 3.95 percent.

SB1,,62 3. On all taxable income exceeding $10,000 but not exceeding $150,000, 4.28 percent.

SB1,,63 4. On all taxable income exceeding $150,000, 5.45 percent.

SB1,20 Section 20. 71.06 (2) (Lm) of the statutes, as created by 2023 Wisconsin Act .... (this act), is repealed.

SB1,21 Section 21. 71.06 (2) (m) of the statutes is created to read:

SB1,,66 71.06 (2) (m) For joint returns, for taxable years beginning after December 31, 2024, and before January 1, 2026:

SB1,,67 1. On all taxable income from $0 to $10,000, 3.32 percent.

SB1,,68 2. On all taxable income exceeding $10,000 but not exceeding $20,000, 3.60 percent.

SB1,,69 3. On all taxable income exceeding $20,000 but not exceeding $300,000, 3.76 percent.

SB1,,70 4. On all taxable income exceeding $300,000, 4.35 percent.

SB1,22 Section 22. 71.06 (2) (m) of the statutes, as created by 2023 Wisconsin Act .... (this act), is repealed.

SB1,23 Section 23. 71.06 (2) (mm) of the statutes is created to read:

SB1,,73 71.06 (2) (mm) For married persons filing separately, for taxable years beginning after December 31, 2024, and before January 1, 2026:

SB1,,74 1. On all taxable income from $0 to $5,000, 3.32 percent.

SB1,,75 2. On all taxable income exceeding $5,000 but not exceeding $10,000, 3.60 percent.

SB1,,76 3. On all taxable income exceeding $10,000 but not exceeding $150,000, 3.76 percent.

SB1,,77 4. On all taxable income exceeding $150,000, 4.35 percent.

SB1,24 Section 24. 71.06 (2) (mm) of the statutes, as created by 2023 Wisconsin Act .... (this act), is repealed.

SB1,25 Section 25. 71.06 (2) (n) of the statutes is created to read:

SB1,,80 71.06 (2) (n) For joint returns and married persons filing separately, for taxable years beginning after December 31, 2025, on all taxable income 3.25 percent.

SB1,26 Section 26. 71.06 (2e) (a) of the statutes is amended to read: