This blog was last updated on July 1, 2026
Sales Tax in Wisconsin
Wisconsin imposes a statewide sales and use tax rate of 5.00%. The state allows local jurisdictions to levy additional sales taxes, meaning the total Wisconsin sales tax rate may vary depending on where a transaction occurs. Businesses should consider both the Wisconsin state sales tax and any applicable county taxes when determining the correct tax rate.
What’s Taxable in Wisconsin?
Wisconsin sales and use tax applies to the sale of tangible personal property and certain enumerated services. Sellers of taxable goods and/or services are required to collect and remit sales tax to the state.
Under Wisconsin sales tax rules, most retail sales of tangible personal property are taxable unless a specific exemption applies. Certain digital products, admissions and services are also subject to Wisconsin state sales tax.
Examples of taxable items and services include:
- Clothing and footwear
- Prewritten (canned) computer software, whether delivered on physical media, downloaded electronically, or accessed remotely
- Digital goods such as eBooks, music downloads, streaming media, and apps
- Telecommunications services
- Repair and service of tangible personal property
- Admissions and access privileges to amusement, athletic, entertainment, or recreational places or events
- Certain printing and laundry services
- Prepared foods sold for immediate consumption
- Electricity, gas, steam, and water
Sales Tax Nexus in Wisconsin
A seller is liable to collect and remit Wisconsin sales tax if they meet the state’s nexus requirements. Nexus can be established through either physical or economic presence.
Wisconsin: Physical Nexus
Physical presence is created by having a business location, office, warehouse, vehicle, employee, or other representative operating in the state of Wisconsin
Wisconsin: Economic Nexus
Wisconsin enforces economic nexus for remote sellers.
If your business has more than $100,000 in gross sales into Wisconsin during the previous or current calendar year, you may be required to register for and collect Wisconsin sales tax.
Note: Wisconsin eliminated its 200-transaction threshold effective February 20, 2021. Only the $100,000 gross revenue threshold now applies.
Businesses making remote or online sales into Wisconsin should regularly evaluate whether they have established economic nexus and are required to collect Wisconsin state sales tax.
Learn more from the Wisconsin Department of Revenue.
How to Register for a Wisconsin Sales Tax License?
Wisconsin businesses or individuals selling tangible personal property or certain services to Wisconsin consumers may need register to collect sales tax when meeting qualifying requirements. More information may be found here.
Wisconsin Sales Tax Exemptions
Certain sales in Wisconsin are considered generally exempt from the sales and use tax requirements.
Exempt Products and Services
- Most food and food ingredients sold for home consumption (unprepared groceries)
- Prescription drugs, insulin, and qualifying durable medical equipment such as wheelchairs and prosthetics
- Custom software designed exclusively for a single customer
- Agricultural supplies including seeds, fertilizer, feed, and farming equipment used exclusively in farming operations
- Manufacturing machinery, equipment, tools, and repair parts used directly and exclusively in manufacturing
- Fuel and electricity used in farming or manufacturing
- Residential fuel (fuel oil, propane, coal, peat, and wood sold for residential heating)
- Most professional services (e.g., legal, medical, accounting, and consulting services)
Entity- or Use-Based Exemptions
Additionally, Wisconsin exempts sales to certain entities from the sales/use tax, including the following:
- Federal, Wisconsin state, and local government units
- Qualifying religious, charitable, educational, and other nonprofit organizations (with a Certificate of Exempt Status, or CES number)
- Retailers purchasing goods for resale (wholesale)
- Schools, colleges, and universities purchasing supplies for instructional purposes
- Manufacturers purchasing materials or energy used directly in production
How to Claim Sales Tax Exemption in Wisconsin
To claim an exemption, an entity must provide an exemption certificate with the sale. The Department of Revenue accepts Form S-211 as the most used form.
Additional guidance on acceptable exemption formats can be found here.
Wisconsin Filing and Remittance Requirements
Wisconsin offers multiple methods for filing and remitting sales and use tax:
- E-filing through My Tax Account.
- Online File Transmission
- Simplified Electronic Return (SER) for SST participants and their affiliates
- TeleFile
Wisconsin only allows paper filing when an approved e-file waiver request (Form EFT-102) has been granted by the Department of Revenue.
Businesses responsible for collecting sales tax in Wisconsin should file returns and remit payments on time to remain compliant and avoid penalties or interest.
Frequently Asked Questions
Is Wisconsin part of the Streamlined Sales Tax (SST) initiative?
Yes. Wisconsin is part of the Streamlined Sales Tax (SST) initiative, a multi-state agreement designed to simplify and standardize Wisconsin sales tax rules.
Does Wisconsin have sales tax holidays?
No, Wisconsin does not currently offer sales tax holidays.
Are there any special point of sale fees in Wisconsin?
Wisconsin imposes several point-of-sale fees, including the E911 fee, limo fee and short-term motor rental fee.
Does Wisconsin apply sales tax to shipping charges?
Generally, Wisconsin treats delivery and shipping charges as taxable when they are part of a taxable sale. When a retailer charges for delivery of a taxable product, the total charge — including the delivery charge — is subject to Wisconsin sales tax, regardless of whether the delivery is made by the seller’s own vehicle, a common carrier, or the U.S. Postal Service. However, transportation charges paid by the purchaser directly to an independent carrier (separate from the seller) are not taxable.
Is Wisconsin origin or destination based?
Wisconsin is a destination-based sales tax state.
How does Wisconsin sales tax apply to construction contractors?
Per Wisconsin law, if a contractor purchases construction materials for use in a real property construction project or repair, the contractor is considered the end user of those materials. That means the contractor must pay sales or use tax on those purchases, and the contractor’s sale to their customers is not taxable.
However, when a contractor sells, installs, or repairs tangible personal property, they are considered the retailer of the property — they should purchase it exempt from sales tax (by providing an exemption certificate claiming the resale exemption) and charge sales tax to their customer.
How does Wisconsin treat candy and soft drinks for sales tax purposes?
Most unprepared groceries are exempt, candy is taxable unless it contains flour or requires refrigeration — for example, a chocolate bar is taxable, but a Kit Kat, which includes flour, is not. Soft drinks that contain sweeteners, have less than 0.5% alcohol, and are not primarily made from milk, milk substitutes, or more than 50% fruit or vegetable juice are also taxable. Soda, sports drinks, and sweetened teas usually fall into this category.
Additional Resources
For more information on U.S. sales tax compliance across all 50 states, check out our:
If you sell products or services into Wisconsin, keeping up with changing tax rates, nexus rules and filing requirements can quickly become complex. Sovos helps sellers streamline sales tax compliance by automating rate calculations, return filing and exemption certificate management, so you can focus on growing your business instead of managing tax obligations. Learn more.