Forward Analytics
Annual reduction in Wisconsin income tax for a single filer, by total income, under the proposed tips subtraction.
Hover or drag across the chart to see the benefit at any income.
Notes: Single filer, 2025 Wisconsin tax brackets and sliding scale standard deduction. Assumes 63.5% of total income is tip income. Deduction capped at $25,000 and phased out by $100 per $1,000 of income above $150,000, reaching zero at $400,000. Benefit is the difference in Wisconsin tax liability with and without the deduction; personal exemption excluded. Because the deduction lowers Wisconsin AGI before the standard deduction is calculated, each $1 deducted reduces taxable income by about $1.12 when Wisconsin AGI is between $19,550 and $132,550.
Source: Forward Analytics analysis of LRB-6707; Wisconsin Department of Revenue.