2023 - 2024 LEGISLATURE
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2023 SENATE BILL 1
January 27, 2023 - Introduced by Senators LEMAHIEU, BALLWEG, BRADLEY,
CABRAL-GUEVARA, FEYEN, JAMES, NASS, STROEBEL, TOMCZYK, HUTTON, KAPENGA
and FELZKOWSKI, cosponsored by Representatives BROOKS, ALLEN, BODDEN,
BRANDTJEN, DITTRICH, GUNDRUM, GUSTAFSON, KNODL, MAGNAFICI, MURPHY,
PENTERMAN, RETTINGER, ROZAR, SPIROS, TUSLER, BEHNKE, SCHRAA, MOSES and
DONOVAN. Referred to Committee on Universities and Revenue.
1 AN ACT to repeal 71.06 (1q), 71.06 (1r) (a), 71.06 (1r) (b), 71.06 (1r) (c), 71.06 (2)
2 (i), 71.06 (2) (j), 71.06 (2) (k), 71.06 (2) (km), 71.06 (2) (L), 71.06 (2) (Lm), 71.06
3 (2) (m), 71.06 (2) (mm), 71.06 (2e) (be), 71.06 (2e) (bm), 71.06 (2e) (bs), 71.06 (2s)
4 (e), 71.06 (2s) (f), 71.06 (2s) (g) and 73.03 (71); to renumber 71.06 (1r) (d); to
5 amend 71.06 (1q) (intro.), 71.06 (1r) (title), 71.06 (2) (i) (intro.), 71.06 (2) (j)
6 (intro.), 71.06 (2e) (a), 71.06 (2e) (b), 71.06 (2m), 71.06 (2s) (d), 71.125 (1), 71.125
7 (2), 71.17 (6), 71.64 (9) (b) (intro.), 71.67 (5) (a), 71.67 (5m), 73.03 (71) (c) 2. and
8 73.03 (71) (d) 2.; and to create 71.06 (1r), 71.06 (2) (k), 71.06 (2) (km), 71.06 (2)
9 (L), 71.06 (2) (Lm), 71.06 (2) (m), 71.06 (2) (mm), 71.06 (2) (n), 71.06 (2e) (be),
10 71.06 (2e) (bm), 71.06 (2e) (bs), 71.06 (2s) (e), 71.06 (2s) (f) and 71.06 (2s) (g) of
11 the statutes; relating to: establishing a flat individual income tax rate.
Analysis by the Legislative Reference Bureau
Under this bill, beginning in taxable year 2026, all individual taxpayers,
regardless of their income, pay the individual income tax at the rate of 3.25 percent.
In addition, for taxable years 2023 through 2025, the bill decreases individual
income tax rates each year for each tax bracket.
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SENATE BILL 1
Under current law, there are four income tax brackets for single individuals,
certain fiduciaries, heads of households, and married persons, and the brackets are
indexed for inflation. The rate of taxation under current law for the lowest bracket
for single individuals, certain fiduciaries, heads of households, and married persons
is 3.54 percent of taxable income. The rate for the second bracket is 4.65 percent.
The rate for the third bracket is 5.3 percent. And the rate for the highest bracket is
7.65 percent. After bracket indexing for taxable year 2022, the four brackets for
individuals, certain fiduciaries, and heads of households, to which the above rates
apply, are as follows: 1) taxable income from $0 to $12,760; 2) taxable income
exceeding $12,760 but not exceeding $25,520; 3) taxable income exceeding $25,520
but not exceeding $280,950; and 4) taxable income exceeding $280,950.
The bill establishes the following rates of taxation for taxable year 2023:
1. For the lowest tax bracket, 3.47 percent.
2. For the second bracket, 4.3 percent.
3. For the third bracket, 4.79 percent.
4. For the highest bracket, 6.55 percent.
The bill establishes the following rates of taxation for taxable year 2024:
1. For the lowest tax bracket, 3.4 percent.
2. For the second bracket, 3.95 percent.
3. For the third bracket, 4.28 percent.
4. For the highest bracket, 5.45 percent.
The bill establishes the following rates of taxation for taxable year 2025:
1. For the lowest tax bracket, 3.32 percent.
2. For the second bracket, 3.6 percent.
3. For the third bracket, 3.76 percent.
4. For the highest bracket, 4.35 percent.
Under the bill, for taxable year 2026 and after, the rate of taxation is 3.25
percent for all taxable income. The bill also requires the Department of Revenue to
update, by October 1 before the start of the applicable tax year, the individual income
tax withholding tables to reflect the tax rates, brackets, and sliding scale standard
deduction that are in effect for taxable years 2024, 2025, and 2026.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
1 SECTION 1. 71.06 (1q) (intro.) of the statutes is amended to read:
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SENATE BILL 1 SECTION 1
1 71.06 (1q) FIDUCIARIES, SINGLE INDIVIDUALS, AND HEADS OF HOUSEHOLDS; AFTER
2 2012 2013 TO 2022. (intro.) The tax to be assessed, levied, and collected upon the taxable
3 incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or
4 reserve funds, and single individuals and heads of households shall be computed at
5 the following rates for taxable years beginning after December 31, 2012, and before
6 January 1, 2023:
7 SECTION 2. 71.06 (1q) of the statutes is repealed.
8 SECTION 3. 71.06 (1r) (title) of the statutes, as created by 2023 Wisconsin Act
9 .... (this act), is amended to read:
10 71.06 (1r) (title) FIDUCIARIES, SINGLE INDIVIDUALS, AND HEADS OF HOUSEHOLDS;
11 AFTER 2022 2025.
12 SECTION 4. 71.06 (1r) of the statutes is created to read:
13 71.06 (1r) FIDUCIARIES, SINGLE INDIVIDUALS, AND HEADS OF HOUSEHOLDS; AFTER
14 2022. (a) The tax to be assessed, levied, and collected upon the taxable incomes of all
15 fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and
16 single individuals and heads of households shall be computed at the following rates
17 for taxable years beginning after December 31, 2022, and before January 1, 2024:
18 1. On all taxable income from $0 to $7,500, 3.47 percent.
19 2. On all taxable income exceeding $7,500 but not exceeding $15,000, 4.30
20 percent.
21 3. On all taxable income exceeding $15,000 but not exceeding $225,000, 4.79
22 percent.
23 4. On all taxable income exceeding $225,000, 6.55 percent.
24 (b) The tax to be assessed, levied, and collected upon the taxable incomes of all
25 fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and
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SENATE BILL 1 SECTION 4
1 single individuals and heads of households shall be computed at the following rates
2 for taxable years beginning after December 31, 2023, and before January 1, 2025:
3 1. On all taxable income from $0 to $7,500, 3.40 percent.
4 2. On all taxable income exceeding $7,500 but not exceeding $15,000, 3.95
5 percent.
6 3. On all taxable income exceeding $15,000 but not exceeding $225,000, 4.28
7 percent.
8 4. On all taxable income exceeding $225,000, 5.45 percent.
9 (c) The tax to be assessed, levied, and collected upon the taxable incomes of all
10 fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and
11 single individuals and heads of households shall be computed at the following rates
12 for taxable years beginning after December 31, 2024, and before January 1, 2026:
13 1. On all taxable income from $0 to $7,500, 3.32 percent.
14 2. On all taxable income exceeding $7,500 but not exceeding $15,000, 3.60
15 percent.
16 3. On all taxable income exceeding $15,000 but not exceeding $225,000, 3.76
17 percent.
18 4. On all taxable income exceeding $225,000, 4.35 percent.
19 (d) The tax to be assessed, levied, and collected upon the taxable incomes of all
20 fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and
21 single individuals and heads of households shall be computed at the rate of 3.25
22 percent for taxable years beginning after December 31, 2025.
23 SECTION 5. 71.06 (1r) (a) of the statutes, as created by 2023 Wisconsin Act ....
24 (this act), is repealed.
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SENATE BILL 1 SECTION 6
1 SECTION 6. 71.06 (1r) (b) of the statutes, as created by 2023 Wisconsin Act ....
2 (this act), is repealed.
3 SECTION 7. 71.06 (1r) (c) of the statutes, as created by 2023 Wisconsin Act ....
4 (this act), is repealed.
5 SECTION 8. 71.06 (1r) (d) of the statutes, as created by 2023 Wisconsin Act ....
6 (this act), is renumbered 71.06 (1r).
7 SECTION 9. 71.06 (2) (i) (intro.) of the statutes is amended to read:
8 71.06 (2) (i) (intro.) For joint returns, for taxable years beginning after
9 December 31, 2012, and before January 1, 2023:
10 SECTION 10. 71.06 (2) (i) of the statutes is repealed.
11 SECTION 11. 71.06 (2) (j) (intro.) of the statutes is amended to read:
12 71.06 (2) (j) (intro.) For married persons filing separately, for taxable years
13 beginning after December 31, 2012, and before January 1, 2023:
14 SECTION 12. 71.06 (2) (j) of the statutes is repealed.
15 SECTION 13. 71.06 (2) (k) of the statutes is created to read:
16 71.06 (2) (k) For joint returns, for taxable years beginning after December 31,
17 2022, and before January 1, 2024:
18 1. On all taxable income from $0 to $10,000, 3.47 percent.
19 2. On all taxable income exceeding $10,000 but not exceeding $20,000, 4.30
20 percent.
21 3. On all taxable income exceeding $20,000 but not exceeding $300,000, 4.79
22 percent.
23 4. On all taxable income exceeding $300,000, 6.55 percent.
24 SECTION 14. 71.06 (2) (k) of the statutes, as created by 2023 Wisconsin Act ....
25 (this act), is repealed.
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SENATE BILL 1 SECTION 15
1 SECTION 15. 71.06 (2) (km) of the statutes is created to read:
2 71.06 (2) (km) For married persons filing separately, for taxable years
3 beginning after December 31, 2022, and before January 1, 2024:
4 1. On all taxable income from $0 to $5,000, 3.47 percent.
5 2. On all taxable income exceeding $5,000 but not exceeding $10,000, 4.30
6 percent.
7 3. On all taxable income exceeding $10,000 but not exceeding $150,000, 4.79
8 percent.
9 4. On all taxable income exceeding $150,000, 6.55 percent.
10 SECTION 16. 71.06 (2) (km) of the statutes, as created by 2023 Wisconsin Act
11 .... (this act), is repealed.
12 SECTION 17. 71.06 (2) (L) of the statutes is created to read:
13 71.06 (2) (L) For joint returns, for taxable years beginning after December 31,
14 2023, and before January 1, 2025:
15 1. On all taxable income from $0 to $10,000, 3.40 percent.
16 2. On all taxable income exceeding $10,000 but not exceeding $20,000, 3.95
17 percent.
18 3. On all taxable income exceeding $20,000 but not exceeding $300,000, 4.28
19 percent.
20 4. On all taxable income exceeding $300,000, 5.45 percent.
21 SECTION 18. 71.06 (2) (L) of the statutes, as created by 2023 Wisconsin Act ....
22 (this act), is repealed.
23 SECTION 19. 71.06 (2) (Lm) of the statutes is created to read:
24 71.06 (2) (Lm) For married persons filing separately, for taxable years
25 beginning after December 31, 2023, and before January 1, 2025:
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SENATE BILL 1 SECTION 19
1 1. On all taxable income from $0 to $5,000, 3.40 percent.
2 2. On all taxable income exceeding $5,000 but not exceeding $10,000, 3.95
3 percent.
4 3. On all taxable income exceeding $10,000 but not exceeding $150,000, 4.28
5 percent.
6 4. On all taxable income exceeding $150,000, 5.45 percent.
7 SECTION 20. 71.06 (2) (Lm) of the statutes, as created by 2023 Wisconsin Act
8 .... (this act), is repealed.
9 SECTION 21. 71.06 (2) (m) of the statutes is created to read:
10 71.06 (2) (m) For joint returns, for taxable years beginning after December 31,
11 2024, and before January 1, 2026:
12 1. On all taxable income from $0 to $10,000, 3.32 percent.
13 2. On all taxable income exceeding $10,000 but not exceeding $20,000, 3.60
14 percent.
15 3. On all taxable income exceeding $20,000 but not exceeding $300,000, 3.76
16 percent.
17 4. On all taxable income exceeding $300,000, 4.35 percent.
18 SECTION 22. 71.06 (2) (m) of the statutes, as created by 2023 Wisconsin Act ....
19 (this act), is repealed.
20 SECTION 23. 71.06 (2) (mm) of the statutes is created to read:
21 71.06 (2) (mm) For married persons filing separately, for taxable years
22 beginning after December 31, 2024, and before January 1, 2026:
23 1. On all taxable income from $0 to $5,000, 3.32 percent.
24 2. On all taxable income exceeding $5,000 but not exceeding $10,000, 3.60
25 percent.
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SENATE BILL 1 SECTION 23
1 3. On all taxable income exceeding $10,000 but not exceeding $150,000, 3.76
2 percent.
3 4. On all taxable income exceeding $150,000, 4.35 percent.
4 SECTION 24. 71.06 (2) (mm) of the statutes, as created by 2023 Wisconsin Act
5 .... (this act), is repealed.
6 SECTION 25. 71.06 (2) (n) of the statutes is created to read:
7 71.06 (2) (n) For joint returns and married persons filing separately, for taxable
8 years beginning after December 31, 2025, on all taxable income 3.25 percent.
9 SECTION 26. 71.06 (2e) (a) of the statutes is amended to read:
10 71.06 (2e) (a) For taxable years beginning after December 31, 1998, and before
11 January 1, 2000, the maximum dollar amount in each tax bracket, and the
12 corresponding minimum dollar amount in the next bracket, under subs. (1m) and (2)
13 (c) and (d), and for taxable years beginning after December 31, 1999, and before
14 January 1, 2023, the maximum dollar amount in each tax bracket, and the
15 corresponding minimum dollar amount in the next bracket, under subs. (1n), (1p) (a)
16 to (c), (1q) (a) and (b), and (2) (e), (f), (g) 1. to 3., (h) 1. to 3., (i) 1. and 2., and (j) 1. and
17 2., shall be increased each year by a percentage equal to the percentage change
18 between the U.S. consumer price index for all urban consumers, U.S. city average,
19 for the month of August of the previous year and the U.S. consumer price index for
20 all urban consumers, U.S. city average, for the month of August 1997, as determined
21 by the federal department of labor, except that for taxable years beginning after
22 December 31, 2000, and before January 1, 2002, the dollar amount in the top bracket
23 under subs. (1p) (c) and (d), (2) (g) 3. and 4. and (h) 3. and 4. shall be increased by a
24 percentage equal to the percentage change between the U.S. consumer price index
25 for all urban consumers, U.S. city average, for the month of August of the previous
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SENATE BILL 1 SECTION 26
1 year and the U.S. consumer price index for all urban consumers, U.S. city average,
2 for the month of August 1999, as determined by the federal department of labor,
3 except that for taxable years beginning after December 31, 2011, the adjustment may
4 occur only if the resulting amount is greater than the corresponding amount that was
5 calculated for the previous year.
6 SECTION 27. 71.06 (2e) (a) of the statutes, as affected by 2023 Wisconsin Act ....
7 (this act), is amended to read:
8 71.06 (2e) (a) For taxable years beginning after December 31, 1998, and before
9 January 1, 2000, the maximum dollar amount in each tax bracket, and the
10 corresponding minimum dollar amount in the next bracket, under subs. (1m) and (2)
11 (c) and (d), and for taxable years beginning after December 31, 1999, and before
12 January 1, 2023, the maximum dollar amount in each tax bracket, and the
13 corresponding minimum dollar amount in the next bracket, under subs. (1n), (1p) (a)
14 to (c), (1q) (a) and (b), and (2) (e), (f), (g) 1. to 3., and (h) 1. to 3., (i) 1. and 2., and (j)
15 1. and 2., shall be increased each year by a percentage equal to the percentage change
16 between the U.S. consumer price index for all urban consumers, U.S. city average,
17 for the month of August