2023 - 2024 LEGISLATURE
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2023 ASSEMBLY BILL 262
May 8, 2023 - Introduced by Representatives O'CONNOR, MACCO, ALLEN,
ARMSTRONG, WITTKE, MAGNAFICI, BRANDTJEN, MURPHY, DITTRICH, MOSES,
GUNDRUM and BEHNKE. Referred to Committee on Ways and Means.
1 AN ACT to amend 71.06 (1q) (intro.), 71.06 (2) (i) (intro.), 71.06 (2) (j) (intro.),
2 71.06 (2e) (a), 71.06 (2e) (b), 71.06 (2m), 71.06 (2s) (d), 71.125 (1), 71.125 (2),
3 71.17 (6), 71.64 (9) (b) (intro.), 71.67 (5) (a) and 71.67 (5m); and to create 71.06
4 (1r), 71.06 (2) (k), 71.06 (2) (km), 71.06 (2) (L), 71.06 (2) (Lm), 71.06 (2) (m), 71.06
5 (2) (mm), 71.06 (2) (n), 71.06 (2) (nn), 71.06 (2) (o), 71.06 (2) (oo), 71.06 (2e) (be),
6 71.06 (2e) (bm), 71.06 (2e) (bs), 71.06 (2e) (bt), 71.06 (2e) (bu), 71.06 (2s) (e),
7 71.06 (2s) (f), 71.06 (2s) (g), 71.06 (2s) (h), 71.06 (2s) (i) and 71.06 (4) of the
8 statutes; relating to: phase-in changes to individual income tax rates and
9 brackets.
Analysis by the Legislative Reference Bureau
This bill modifies the individual income tax rates and brackets beginning with
the 2024 tax year and ending with the 2028 tax year. The bill decreases individual
income tax rates each year for each tax bracket. Beginning with tax year 2027, the
tax rate for individuals whose income is $7,500 or less, before being adjusted for
inflation, is zero. Beginning with tax year 2028, the tax rate for individuals whose
income exceeds $7,500, before being adjusted for inflation, is 4.5 percent.
Under current law, there are four income tax brackets for single individuals,
certain fiduciaries, heads of households, and married persons, and the brackets are
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ASSEMBLY BILL 262
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. Before bracket indexing, 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 $7,500; 2) taxable income exceeding $7,500 but not
exceeding $15,000; 3) taxable income exceeding $15,000 but not exceeding $225,000;
and 4) taxable income exceeding $225,000.
Because this bill relates to an exemption from state or local taxes, it may be
referred to the Joint Survey Committee on Tax Exemptions for a report to be printed
as an appendix to the bill.
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:
2 71.06 (1q) FIDUCIARIES, SINGLE INDIVIDUALS, AND HEADS OF HOUSEHOLDS; AFTER
3 2012 AND BEFORE 2024. (intro.) The tax to be assessed, levied, and collected upon the
4 taxable incomes of all fiduciaries, except fiduciaries of nuclear decommissioning
5 trust or reserve funds, and single individuals and heads of households shall be
6 computed at the following rates for taxable years beginning after December 31, 2012,
7 and before January 1, 2024:
8 SECTION 2. 71.06 (1r) of the statutes is created to read:
9 71.06 (1r) FIDUCIARIES, SINGLE INDIVIDUALS, AND HEADS OF HOUSEHOLDS; AFTER
10 2023. (a) The tax to be assessed, levied, and collected upon the taxable incomes of all
11 fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and
12 single individuals and heads of households shall be computed at the following rates
13 for taxable years beginning after December 31, 2023, and before January 1, 2025,
14 except as provided under s. 71.06 (4):
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ASSEMBLY BILL 262 SECTION 2
1 1. On all taxable income from $0 to $7,500, 3.15 percent.
2 2. On all taxable income exceeding $7,500 but not exceeding $15,000, 4.5
3 percent.
4 3. On all taxable income exceeding $15,000 but not exceeding $225,000, 5
5 percent.
6 4. On all taxable income exceeding $225,000, 7.40 percent.
7 (b) The tax to be assessed, levied, and collected upon the taxable incomes of all
8 fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and
9 single individuals and heads of households shall be computed at the following rates
10 for taxable years beginning after December 31, 2024, and before January 1, 2026,
11 except as provided under s. 71.06 (4):
12 1. On all taxable income from $0 to $7,500, 2.20 percent.
13 2. On all taxable income exceeding $7,500 but not exceeding $15,000, 4.5
14 percent.
15 3. On all taxable income exceeding $15,000 but not exceeding $225,000, 4.75
16 percent.
17 4. On all taxable income exceeding $225,000, 6.70 percent.
18 (c) The tax to be assessed, levied, and collected upon the taxable incomes of all
19 fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and
20 single individuals and heads of households shall be computed at the following rates
21 for taxable years beginning after December 31, 2025, and before January 1, 2027,
22 except as provided under s. 71.06 (4):
23 1. On all taxable income from $0 to $7,500, 1.25 percent.
24 2. On all taxable income exceeding $7,500 but not exceeding $15,000, 4.5
25 percent.
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ASSEMBLY BILL 262 SECTION 2
1 3. On all taxable income exceeding $15,000 but not exceeding $225,000, 4.5
2 percent.
3 4. On all taxable income exceeding $225,000, 6 percent.
4 (d) The tax to be assessed, levied, and collected upon the taxable incomes of all
5 fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and
6 single individuals and heads of households shall be computed at the following rates
7 for taxable years beginning after December 31, 2026, and before January 1, 2028,
8 except as provided under s. 71.06 (4):
9 1. On all taxable income from $0 to $7,500, 0 percent.
10 2. On all taxable income exceeding $7,500 but not exceeding $15,000, 4.5
11 percent.
12 3. On all taxable income exceeding $15,000 but not exceeding $225,000, 4.5
13 percent.
14 4. On all taxable income exceeding $225,000, 5.20 percent.
15 (e) The tax to be assessed, levied, and collected upon the taxable incomes of all
16 fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and
17 single individuals and heads of households shall be computed at the following rates
18 percent for taxable years beginning after December 31, 2027, except as provided
19 under s. 71.06 (4):
20 1. On all taxable income from $0 to $7,500, 0 percent.
21 2. On all taxable income exceeding $7,500 but not exceeding $15,000, 4.5
22 percent.
23 3. On all taxable income exceeding $15,000 but not exceeding $225,000, 4.5
24 percent.
25 4. On all taxable income exceeding $225,000, 4.5 percent.
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ASSEMBLY BILL 262 SECTION 3
1 SECTION 3. 71.06 (2) (i) (intro.) of the statutes is amended to read:
2 71.06 (2) (i) (intro.) For joint returns, for taxable years beginning after
3 December 31, 2012, and before January 1, 2024:
4 SECTION 4. 71.06 (2) (j) (intro.) of the statutes is amended to read:
5 71.06 (2) (j) (intro.) For married persons filing separately, for taxable years
6 beginning after December 31, 2012, and before January 1, 2024:
7 SECTION 5. 71.06 (2) (k) of the statutes is created to read:
8 71.06 (2) (k) For joint returns, for taxable years beginning after December 31,
9 2023, and before January 1, 2025, except as provided under s. 71.06 (4):
10 1. On all taxable income from $0 to $10,000, 3.15 percent.
11 2. On all taxable income exceeding $10,000 but not exceeding $20,000, 4.5
12 percent.
13 3. On all taxable income exceeding $20,000 but not exceeding $300,000, 5
14 percent.
15 4. On all taxable income exceeding $300,000, 7.40 percent.
16 SECTION 6. 71.06 (2) (km) of the statutes is created to read:
17 71.06 (2) (km) For married persons filing separately, for taxable years
18 beginning after December 31, 2023, and before January 1, 2025, except as provided
19 under s. 71.06 (4):
20 1. On all taxable income from $0 to $5,000, 3.15 percent.
21 2. On all taxable income exceeding $5,000 but not exceeding $10,000, 4.5
22 percent.
23 3. On all taxable income exceeding $10,000 but not exceeding $150,000, 5
24 percent.
25 4. On all taxable income exceeding $150,000, 7.40 percent.
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ASSEMBLY BILL 262 SECTION 7
1 SECTION 7. 71.06 (2) (L) of the statutes is created to read:
2 71.06 (2) (L) For joint returns, for taxable years beginning after December 31,
3 2024, and before January 1, 2026, except as provided under s. 71.06 (4):
4 1. On all taxable income from $0 to $10,000, 2.20 percent.
5 2. On all taxable income exceeding $10,000 but not exceeding $20,000, 4.5
6 percent.
7 3. On all taxable income exceeding $20,000 but not exceeding $300,000, 4.75
8 percent.
9 4. On all taxable income exceeding $300,000, 6.70 percent.
10 SECTION 8. 71.06 (2) (Lm) of the statutes is created to read:
11 71.06 (2) (Lm) For married persons filing separately, for taxable years
12 beginning after December 31, 2024, and before January 1, 2026, except as provided
13 under s. 71.06 (4):
14 1. On all taxable income from $0 to $5,000, 2.20 percent.
15 2. On all taxable income exceeding $5,000 but not exceeding $10,000, 4.5
16 percent.
17 3. On all taxable income exceeding $10,000 but not exceeding $150,000, 4.75
18 percent.
19 4. On all taxable income exceeding $150,000, 6.70 percent.
20 SECTION 9. 71.06 (2) (m) of the statutes is created to read:
21 71.06 (2) (m) For joint returns, for taxable years beginning after December 31,
22 2025, and before January 1, 2027, except as provided under s. 71.06 (4):
23 1. On all taxable income from $0 to $10,000, 1.25 percent.
24 2. On all taxable income exceeding $10,000 but not exceeding $20,000, 4.5
25 percent.
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ASSEMBLY BILL 262 SECTION 9
1 3. On all taxable income exceeding $20,000 but not exceeding $300,000, 4.5
2 percent.
3 4. On all taxable income exceeding $300,000, 6 percent.
4 SECTION 10. 71.06 (2) (mm) of the statutes is created to read:
5 71.06 (2) (mm) For married persons filing separately, for taxable years
6 beginning after December 31, 2025, and before January 1, 2027, except as provided
7 under s. 71.06 (4):
8 1. On all taxable income from $0 to $5,000, 1.25 percent.
9 2. On all taxable income exceeding $5,000 but not exceeding $10,000, 4.5
10 percent.
11 3. On all taxable income exceeding $10,000 but not exceeding $150,000, 4.5
12 percent.
13 4. On all taxable income exceeding $150,000, 6 percent.
14 SECTION 11. 71.06 (2) (n) of the statutes is created to read:
15 71.06 (2) (n) For joint returns, for taxable years beginning after December 31,
16 2026, and before January 1, 2028, except as provided under s. 71.06 (4):
17 1. On all taxable income from $0 to $10,000, 0 percent.
18 2. On all taxable income exceeding $10,000 but not exceeding $20,000, 4.5
19 percent.
20 3. On all taxable income exceeding $20,000 but not exceeding $300,000, 4.5
21 percent.
22 4. On all taxable income exceeding $300,000, 5.20 percent.
23 SECTION 12. 71.06 (2) (nn) of the statutes is created to read:
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1 71.06 (2) (nn) For married persons filing separately, for taxable years
2 beginning after December 31, 2026, and before January 1, 2028, except as provided
3 under s. 71.06 (4):
4 1. On all taxable income from $0 to $5,000, 0 percent.
5 2. On all taxable income exceeding $5,000 but not exceeding $10,000, 4.5
6 percent.
7 3. On all taxable income exceeding $10,000 but not exceeding $150,000, 4.5
8 percent.
9 4. On all taxable income exceeding $150,000, 5.20 percent.
10 SECTION 13. 71.06 (2) (o) of the statutes is created to read:
11 71.06 (2) (o) For joint returns, for taxable years beginning after December 31,
12 2027, except as provided under s. 71.06 (4):
13 1. On all taxable income from $0 to $10,000, 0 percent.
14 2. On all taxable income exceeding $10,000 but not exceeding $20,000, 4.5
15 percent.
16 3. On all taxable income exceeding $20,000 but not exceeding $300,000, 4.5
17 percent.
18 4. On all taxable income exceeding $300,000, 4.5 percent.
19 SECTION 14. 71.06 (2) (oo) of the statutes is created to read:
20 71.06 (2) (oo) For married persons filing separately, for taxable years beginning
21 after December 31, 2027, except as provided under s. 71.06 (4):
22 1. On all taxable income from $0 to $5,000, 0 percent.
23 2. On all taxable income exceeding $5,000 but not exceeding $10,000, 4.5
24 percent.
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ASSEMBLY BILL 262 SECTION 14
1 3. On all taxable income exceeding $10,000 but not exceeding $150,000, 4.5
2 percent.
3 4. On all taxable income exceeding $150,000, 4.5 percent.
4 SECTION 15. 71.06 (2e) (a) of the statutes is amended to read:
5 71.06 (2e) (a) For taxable years beginning after December 31, 1998, and before
6 January 1, 2000, the maximum dollar amount in each tax bracket, and the
7 corresponding minimum dollar amount in the next bracket, under subs. (1m) and (2)
8 (c) and (d), and for taxable years beginning after December 31, 1999, and before
9 January 1, 2024, the maximum dollar amount in each tax bracket, and the
10 corresponding minimum dollar amount in the next bracket, under subs. (1n), (1p) (a)
11 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
12 2., shall be increased each year by a percentage equal to the percentage change
13 between the U.S. consumer price index for all urban consumers, U.S. city average,
14 for the month of August of the previous year and the U.S. consumer price index for
15 all urban consumers, U.S. city average, for the month of August 1997, as determined
16 by the federal department of labor, except that for taxable years beginning after
17 December 31, 2000, and before January 1, 2002, the dollar amount in the top bracket
18 under subs. (1p) (c) and (d), (2) (g) 3. and 4. and (h) 3. and 4. shall be increased by a
19 percentage equal to the percentage change between the U.S. consumer price index
20 for all urban consumers, U.S. city average, for the month of August of the previous
21 year and the U.S. consumer price index for all urban consumers, U.S. city average,
22 for the month of August 1999, as determined by the federal department of labor,
23 except that for taxable years beginning after December 31, 2011, the adjustment may
24 occur only if the resulting amount is greater than the corresponding amount that was
25 calculated for the previous year.
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ASSEMBLY BILL 262 SECTION 16
1 SECTION 16. 71.06 (2e) (b) of the statutes is amended to read:
2 71.06 (2e) (b) For taxable years beginning after December 31, 2009, and before
3 January 1, 2024, the maximum dollar amount in each tax bracket, and the
4 corresponding minimum dollar amount in the next bra