By james art 
State and local taxes fell again as a share of Wisconsinites incomes In 2024 pushing that ratio — known as the state and local tax burden — to its lowest level since at least 1970.
That ratio of what Wisconsin residents pay in all state and local taxes to what they receive in income from all sources dropped from 9.92 percent in 2023. to 9.62% in 2024. The decline reflects continued state income growth, plus an aggressive effort by the state to lower local property taxes.
Each year, the Wisconsin Policy Forum looks at every local and state tax paid, from fees paid by dry cleaners ($369,050 in 2024) to gross local property taxes ($13.09 billion). For these fiscal figures for the year 2024, we compare the state personal income data from the previous calendar year, in case 2023, to calculate the tax burden.
Overall, state and local tax revenue rose 1.9% in 2024increasing to $36.9 billion frOM $36.2 billion in 2023.. That lagged the rate of inflation and was the smallest increase since 2017. Meanwhile, IncoI growth easily overtakes Tax collection growth as personal income in calendar year 2023. grew by 5.2% – doubling the increaseSE saw the previous year. Howeveras every year since 2009, personal income growth in Wisconsin has lagged behind the national average, which was 5.9% that year.
Combined local government tax revenue collected by municipalities, counties, school and technical college districts and special districts grew by 2.7% in 2024. to $12.28 billion. Revenue from gross local property taxes — Wisconsin’s largest single tax — grew 4.6 percent in 2024, the most since 2008. The increase reflects a voter-approved referendum and the end of a state freeze on school district revenue caps.
Total state tax revenue grew to $24.65 billion in 2024. from $24.27 billion in the previous year. This 1.6% annual increase was the smallest since 2020. Most of these revenues come from individual income tax collections, which rose by 3.2%, from $9.42 billion in 2023 to $9.72 billion in 2024. Growth in income tax collections has been restrained by tax cuts Included in 2021-23 and 2023.–25 state budget.
Corporate income tax collections fell, falling 1.7% from $2.75 billion in 2023. to $2.70 billion in 2024. Sales tax collections rose 1.8% in 2024. to $7.59 billion-slowest year over uh uh uh uh uh uh uh uh uh ((Ear growth rate since 2010. It became like Inflation is now retreating after several straight years in which it rapidly increased sales tax revenue.
It’s worth noting that elected leaders in Wisconsin in recent years have focused on keeping the property tax, personal income tax and motor tax, but there have been fewer major cuts or reductions in sales taxes., and some enlargements. As a result, sales taxes have made up a larger share of total state and local tax collections over time, from just under 12% in 1970 to 22.4% in 2024.
Overall, state and local tax burdens in Wisconsin fell to record lows. Since 2000 no other state has seen a comparable decline in state and local taxes as a share of income. forward, some A combination of economic expansion and more efficient government will likely be needed to maintain quality public services while keeping state and local taxes affordable.
This information is a service of the Wisconsin Policy Forum, the state’s leading nonpartisan resource