July 28, 2021
Wisconsin law cuts personal income taxes retroactive to January 1, 2021
On July 8, 2021, Wisconsin Governor Tony Evers signed A.B. 68, a 2021—2023 biennial budget, which, effective January 1, 2021 lowers one income tax bracket from 6.27% to 5.3% for individuals with taxable income of between $23,930 to $263,480 and between $31,910 and $351,310 for married persons filing jointly.
The provision is expected to save Wisconsin taxpayers roughly $2 billion over the next two years.
Governor vetoes requirement for revision to the income tax withholding tables
Governor Evers vetoed a provision of A.B. 68 that would have required the Wisconsin Department of Revenue to update the income tax withholding tables to reflect the income tax rate reduction.
In his veto message, Governor Evers explains that he objects to requiring the Department to make these withholding table adjustments "at a cost of approximately $700 million while other critical priorities have not been sufficiently funded by the legislature." He further states that the "Department has the ability under current law to make these adjustments as appropriate and will assess whether and when these updates should be made within the full context of revenue collection trends and other state priorities."
Wisconsin Publication 166, Withholding Tax Guide, if updated, will be available here.
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