One Hundred Years and Counting: Wisconsin’s Income Tax: History, Process, and Filers
Wisconsin became the first state to tax income in 1911. Now, the income tax generates $7.3 billion annually, or about half of state general fund revenue. In 2014, two-thirds of filers had incomes under $50,000 and paid 9.4% of taxes. A majority of income (52.2%) and taxes (56.7%) can be attributed to the 31% of filers in the $50,000-to-$200,000 income range. Those with incomes over $200,000 filed 2.5% of returns but paid more than one-third (33.9%) of taxes. Across all income groups, the average effective income tax rate was 4.2%.