WI Wisconsin State sales tax rates

STATEWIDE SALES TAX RATE

ECONOMIC SALES THRESHOLD

$100,000

TRANSACTIONS THRESHOLD

Do you need to collect sales tax in Wisconsin?

You’ll need to collect sales tax in Wisconsin if you have nexus there. There are two ways that sellers can be tied to a state when it comes to nexus: physical or economic. Physical nexus means having enough tangible presence or activity in a state to merit paying sales tax in that state. Economic nexus means passing a states’ economic threshold for total revenue or the number of transactions in that state.

Do you have physical nexus in Wisconsin?

Wisconsin considers a seller to have physical nexus if you have any of the following in the state:

An office or place of business
An employee present in the state
Goods in a warehouse
Ownership of real or personal property

Do you have economic nexus in Wisconsin?

Effective February 2021, Wisconsin considers vendors who make more than $100,000 in sales in the state in the previous or current calendar year to have economic nexus. (This is an update of Wisconsin’s original economic nexus laws, which went into effect October 1, 2018.) This means the state considers these vendors obligated to collect sales tax from buyers in the state.

Is what you’re selling even taxable?

Services in Wisconsin are generally not taxable, with some exceptions. However – if the service you provide includes creating or manufacturing a product, you may have to deal with the sales tax on products..

Tangible products are taxable in Wisconsin, with a few exceptions. These exceptions include burial caskets, certain groceries, prescription medicine and medical devices, printed publications, modular or manufactured homes, manufacturing equipment, and some agricultural items.

Is SaaS taxable in Wisconsin?

SaaS is non-taxable in Wisconsin.

Collecting Sales Tax

Wisconsin is a destination-based sales tax state. So if you live in Wisconsin, collecting sales tax is not very easy. You must collect sales tax at the tax rate where the item is being delivered. This is the same whether you live in Wisconsin or not. It is also the same if you will use Amazon FBA there.

Should you collect sales tax on shipping charges in Wisconsin?

In Wisconsin, if the item that you are shipping is taxable and you charge your buyer shipping, then those charges are taxable. If you have both taxable and non-taxable items shipping, you will need to determine the portion of the shipping charge that is for the taxable items and charge tax on that portion.

When are Returns Due?

When you file and pay Wisconsin sales tax depends on two things: your assigned filing frequency and your state’s due dates.

How often will you file sales tax returns in Wisconsin?

States assign retailers a filing frequency when you register for your sales tax permit. In most states, how often retailers file sales tax is based on the amount of sales tax you collect from buyers in the state.

In Wisconsin, you will be required to file and remit sales tax either monthly, quarterly, or annually.

Wisconsin sales tax returns are almost always due the last day of the month following the reporting period. If the filing due date falls on a weekend or holiday, sales tax is generally due the next business day.

Important Note: Some high-volume Wisconsin sales tax filers will be assigned “prepayments” which are due the 20th of the month following the taxable period (as opposed to the last day of the month following the taxable period.)