LRB-1049/1
KP:emw
2023 - 2024 LEGISLATURE
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.
SB1,1,11
1An 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
5amend 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
873.03 (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),
1071.06 (2e) (bm), 71.06 (2e) (bs), 71.06 (2s) (e), 71.06 (2s) (f) and 71.06 (2s) (g) of
11the 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.
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:
SB1,1
1Section
1. 71.06 (1q) (intro.) of the statutes is amended to read:
SB1,3,6
171.06
(1q) Fiduciaries, single individuals, and heads of households; after
22012 2013 to 2022. (intro.) The tax to be assessed, levied, and collected upon the taxable
3incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or
4reserve funds, and single individuals and heads of households shall be computed at
5the following rates for taxable years beginning after December 31, 2012
, and before
6January 1, 2023:
SB1,2
7Section
2
. 71.06 (1q) of the statutes is repealed.
SB1,3
8Section
3
. 71.06 (1r) (title) of the statutes, as created by 2023 Wisconsin Act
9.... (this act), is amended to read:
SB1,3,1110
71.06
(1r) (title)
Fiduciaries, single individuals, and heads of households;
11after 2022 2025
.
SB1,4
12Section
4. 71.06 (1r) of the statutes is created to read:
SB1,3,1713
71.06
(1r) Fiduciaries, single individuals, and heads of households; after
142022. (a) The tax to be assessed, levied, and collected upon the taxable incomes of all
15fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and
16single individuals and heads of households shall be computed at the following rates
17for taxable years beginning after December 31, 2022, and before January 1, 2024:
SB1,3,1818
1. On all taxable income from $0 to $7,500, 3.47 percent.
SB1,3,2019
2. On all taxable income exceeding $7,500 but not exceeding $15,000, 4.30
20percent.
SB1,3,2221
3. On all taxable income exceeding $15,000 but not exceeding $225,000, 4.79
22percent.
SB1,3,2323
4. On all taxable income exceeding $225,000, 6.55 percent.
SB1,4,224
(b) The tax to be assessed, levied, and collected upon the taxable incomes of all
25fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and
1single individuals and heads of households shall be computed at the following rates
2for taxable years beginning after December 31, 2023, and before January 1, 2025:
SB1,4,33
1. On all taxable income from $0 to $7,500, 3.40 percent.
SB1,4,54
2. On all taxable income exceeding $7,500 but not exceeding $15,000, 3.95
5percent.
SB1,4,76
3. On all taxable income exceeding $15,000 but not exceeding $225,000, 4.28
7percent.
SB1,4,88
4. On all taxable income exceeding $225,000, 5.45 percent.
SB1,4,129
(c) The tax to be assessed, levied, and collected upon the taxable incomes of all
10fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and
11single individuals and heads of households shall be computed at the following rates
12for taxable years beginning after December 31, 2024, and before January 1, 2026:
SB1,4,1313
1. On all taxable income from $0 to $7,500, 3.32 percent.
