Wisconsin Senate Bill 45: Important changes to income, sales and property tax
On July 3, 2025, Governor Tony Evers signed Wisconsin Senate Bill 45 into law as 2025 Wisconsin Act 15, which enacts several income tax changes, two sales tax exemptions and two property tax exemptions.
Here is what you should know about the changes and their potential impacts:
Personal income tax changes
Senate Bill 45 introduces several notable updates aimed at reducing tax burdens and expanding benefits for individual taxpayers, including:
Second-lowest bracket expansion
Wisconsin’s personal income tax uses four rate brackets: 3.5%, 4.4%, 5.3% and 7.65%.
Under Act 15 and beginning in 2025, more taxpayers will be able to benefit from the 4.4% bracket. This is because the upper end of that bracket’s income range will increase from:
- $29,370 to $50,480 for individual filers.
- $39,150 to $67,300 for married filing joint taxpayers.
- $19,580 to $33,650 for married filing separately taxpayers.
Exclusion of retirement income
Beginning in 2025, the legislation excludes certain retirement income from the taxable income of Wisconsin filers who are 67 or older. The maximum annual retirement income exclusion is $24,000 for single taxpayers and $48,000 for married filing joint taxpayers.
Increase to the adoption expense deduction
Beginning in 2025, the annual tax deduction available to Wisconsin filers for costs associated with adopting a child increases from $5,000 to $15,000.
Considered but not enacted
Many changes were introduced during the 2025 session, but were not ultimately enacted.
Significant examples include:
- An employee ownership cost conversion tax credit and a deduction from capital gains for the transfer of ownership (Senate Bill 21).
- A 9.8% bracket for income over $1,000,000.
- The limitation of the 30% capital gains exclusion for income over $400,000 (Senate Bill 45).
New sales tax exemptions
Senate Bill 45 includes new sales tax exemptions that can help reduce costs for specific industries and Wisconsin residents.
Exemption for insurance-related information products
Effective October 1, 2025, certain information products — such as reports, statistics, records or data — are exempt when used exclusively by:
- Insurance companies holding a certificate of authority from the Wisconsin Commissioner of Insurance.
- Licensed insurance intermediaries under the Commissioner’s jurisdiction.
The data must be used exclusively for quoting, underwriting, determining insurability, assessing risks, setting rates or adjusting claims. This exemption applies regardless of whether the information is delivered in tangible or digital form and whether it is sold on a transactional basis or through a license, subscription or other access-based models.
Exemption for residential electricity and natural gas
Wisconsin has also expanded the sales tax exemption for electricity and natural gas sold for residential use to year-round, effective October 1, 2025. The exemption formerly applied only during November through April.
This exemption applies to the full sales price, including delivery charges, provided the energy is used in a qualifying residential setting.
New property tax exemptions
The bill includes new exemptions for telecommunication towers.
The exemptions include:
- Effective January 1, 2026: Radio, cellular and telecommunication towers used exclusively to support equipment that provides telecommunication services or that is used as digital broadcasting equipment for radio or video services.
- Effective January 1, 2027: Radio, cellular and telecommunication towers used by a telephone company.
How Wipfli can help
Wisconsin’s updated exemptions offer clarity but may still raise questions about eligibility, documentation and compliance. Wipfli can help you evaluate your tax exposure, apply exemptions correctly and help ensure your systems are up to date.
Contact us today for guidance on your tax planning and strategy needs.
You can also get more tax insights from our additional resources:
