On July 3, 2025, Wisconsin Governor Tommy Evers signed the state's budget bill, officially known as 2025 Wisconsin Act 15 (SB 45), which includes individual income tax rate reductions and other changes that will affect both individuals and businesses.

Individual income taxes

Act 15 expands the state's second-lowest tax bracket, which taxes income at 4.4%. Previously, single filers earning between $14,320 and $28,640, or married couples filing jointly earning between $19,090 and $38,190, were taxed at this rate. For tax years beginning after December 31, 2024, this bracket extends to single filers earning up to $50,480 and married couples filing jointly up to $67,300. Taxpayers that are married but file separately will remain in this bracket until their earnings reach $33,160. Income included in the newly expanded bracket will be taxed at the 4.4% rate, rather than the 5.3% rate applicable to the next higher bracket.

Act 15 also excludes from taxation the first $24,000 of retirement income for individuals aged 67 and over (up to $48,000 for married couples filing jointly).

Sales taxes

Act 15 eliminates the state sales tax on household energy bills, effective October 1, 2025. This permanently implements the exemption that applied only from November 2024 through April 2025.

Business tax changes

Act 15 establishes a film tax credit, with an aggregate $5 million cap per year for a project and a $1 million cap for any single applicant per year. The credit is available for tax years beginning after December 31, 2025.

Act 15 also provides an exemption from the sales tax for information products used by insurance companies. The exemption is effective October 1, 2025.

Act 15 provides a property tax exemption for radio, cellular and telecommunication towers used exclusively to support equipment providing telecommunications services or used as digital broadcasting equipment for radio, television or video service. This exemption applies to assessments as of January 1, 2026. Act 15 also exempts such property owned by a telephone company, effective for assessments as of January 1, 2027.