According to a recent report by the Wisconsin Policy Forum, the state and local tax burden in 2022 hit a record low of 9.9 percent of personal income, down from 10.3 percent the previous year.

As a result, Wisconsin’s overall tax ranking fell to 35^th when comparing the burden of state and local taxes with other states – the lowest since the 1990s and a drop from 26^th in 2021.

In 2000, Wisconsin had the third highest tax ranking, when state and local taxes are compared with other states.  The study also showed that Wisconsin’s individual income tax ranked 13^th highest in the country in 2020, had fallen to 30th in 2022.

Meanwhile, property taxes were ranked 17^th highest as a share of income, which according to the authors of the study is similar to recent years.

The study indicated state and local spending grew in 2022 but fell as share of personal income. In fact, general spending totaled $65 billion in 2022, an increase of 7 percent over the previous years.

The Wisconsin Policy Forum noted Governor Tony Evers and the Legislature couldn’t agree last session on several plans that would have reduced individual income tax rates – “a tension that will be one of the largest challenges ahead in the 2025-27 budget.”

Last session, the Governor vetoed a package of bills that would have reduced taxes by $3.2 billion, according to Fiscal Bureau estimates.

As we prepare for the 2025-26 Session of the Legislature, NFIB will be a leading advocate for passage of legislation that reduces the tax burden for small business taxpayers.