Wisconsin taxes federal AGI at rates from 3.5% to 7.65%, less a $700 exemption per filer and a standard deduction that shrinks as you earn more — it is worth $13,960 to a single filer under $20,120 and nothing at all above $136,453. Neither federal deduction reduces Wisconsin tax: state law follows the federal code as it stood on 31 December 2022.
What it means on a real paycheck
Take a single filer earning $50,000 a year, $8,000 of it in tips. Against the same person with no tips to declare, the federal deduction is worth $960.
In Wisconsin it is worth nothing extra. The state bill is identical either way, so $960 is the whole of it.
How Wisconsin works out the tax
Wisconsin charges graduated rates from 3.5% up to 7.65%, across four bands, after a standard deduction that starts at $13,960 for a single filer and shrinks as you earn more and an exemption of $700 a person. It begins from your federal adjusted gross income and applies its own reliefs from there.