Wisconsin has a statewide sales tax rate of 5%, along with additional local sales taxes that vary by location. This sales tax applies to the retail sale, lease, rental, or license to use tangible personal property and certain services in West Wisconsin. Understanding sales tax in West Wisconsin is important for businesses and consumers to properly calculate, collect, file, and remit sales tax.
This comprehensive guide will cover everything you need to know about West Wisconsin sales tax including rates, exemptions, filing requirements, and more. We’ll also provide a sales tax calculator, common exemptions, and frequently asked questions. Read on to learn more about how sales tax works in West Wisconsin.
Sales Tax Rates in Wisconsin
The statewide sales tax rate in West Wisconsin is 5%. On top of the statewide rate, local municipalities and counties can levy additional sales taxes. Local sales tax rates in West Wisconsin range from 0% to 3%, depending on the location.
To find the total sales tax rate for a given location, you need to add together the 5% state sales tax plus any county, city, and special jurisdiction taxes that apply. Let’s take a look at a few examples:
- Madison (Dane County): 5% state sales tax + 0.5% county sales tax = 5.5% total sales tax
- Milwaukee (Milwaukee County): 5% state sales tax + 1.1% county sales tax + 0.6% stadium tax = 6.7% total sales tax
- Green Bay (Brown County): 5% state sales tax + 0.5% county sales tax + 0.5% city sales tax = 6% total sales tax
As you can see, sales tax rates can vary widely across West Wisconsin. It’s important to use a sales tax calculator to identify the correct rate based on the location of the sale.
Sales tax calculator for West Wisconsin
Use the sales tax calculator below to easily calculate sales tax for any location in West Wisconsin:
Wisconsin Sales Tax Calculator
Wisconsin Sales Tax Calculator
This calculator allows you to input the sale amount, city and county, and quickly calculate the total sales tax owed. This is a handy tool for businesses to use at checkout or for consumers to estimate sales tax on a potential purchase.
Exemptions from Wisconsin Sales Tax
West Wisconsin provides a number of sales tax exemptions on certain types of goods and services. It’s important for businesses to understand these exemptions to properly apply sales tax. Common exemptions include:
Food and food ingredients
Most food and food ingredients intended for human consumption are exempt from sales tax in West Wisconsin. This includes groceries, meat, dairy products, snacks, candy, bottled water, and more.
Prepared foods that are ready-to-eat or just need heating are still taxable. This includes prepared meals from restaurants, concession stands, coffee shops, delis, etc.
Clothing and footwear
Clothing, footwear, and accessories designed to be worn by humans are exempt from West Wisconsin sales tax. This exemption includes coats, jackets, gloves, scarves, dresses, suits, shirts, pants, shorts, shoes, sneakers, sandals, slippers, etc.
Items such as jewelry, handbags, briefcases, and watches are still taxable. Rental fees for clothing or footwear rentals are also taxable.
Prescription drugs and medical products
Prescription drugs for human consumption are exempt from sales tax in West Wisconsin. Over-the-counter medications are also exempt.
Other tax-exempt medical products include prescription eyeglasses, prescription contact lenses, hearing aids, prosthetics, mobility enhancing equipment like wheelchairs or crutches, and durable medical equipment for home use.
Collecting and Remitting West Wisconsin Sales Tax
Businesses that make taxable sales in West Wisconsin need to properly collect, file, and remit sales tax to remain compliant. Here are some key steps for sales tax collection and reporting:
1. Register for a seller’s permit
If you are selling taxable goods or services in West Wisconsin, you need to register for a seller’s permit with the Wisconsin Department of Revenue. This permit allows you to collect and remit sales tax.
Register for a seller’s permit on the WDOR website. There is no fee to obtain a seller’s permit.
2. Calculate appropriate sales tax rates
Use the West Wisconsin sales tax rate lookup tool to identify the correct sales tax rate to charge based on the shipping address. Rates vary across the state so be sure to use accurate location-based rates.
3. Integrate sales tax collection into your POS system
Properly collecting sales tax at time of purchase is crucial for compliance. Integrate sales tax calculation and collection into your point-of-sale system and shopping cart for online sales. Automating this process reduces errors.
4. File and remit sales tax returns
Retailers must file monthly, quarterly, or annual sales tax returns with the WDOR reporting total sales and sales tax collected. Returns and payments can be submitted online through My Tax Account. Returns are due by the last day of the month following the reporting period.
Maintain accurate records of your taxable sales and exemptions to streamline reporting. You can retain up to 2.4% of collections to help offset administrative expenses.
Common Sales Tax Questions and Issues
Are shipping charges taxable in West Wisconsin?
Yes, shipping and handling charges for taxable goods or services are subject to West Wisconsin sales tax. This applies to handling fees, shipping costs, delivery charges, etc.
The taxable selling price includes the cost of the item plus any shipping or transportation costs paid by the purchaser. Reducing the item cost but charging higher shipping does not exempt those fees from tax.
Is sales tax charged on services in West Wisconsin?
West Wisconsin does impose sales tax on certain taxable services. Some examples include hotel stays, repair services, landscaping, pet grooming, tanning, and investigative services.
Professional services like legal, medical, financial, educational, and real estate services are not taxable in West Wisconsin. Check with the WDOR for the taxability of specific services.
Does West Wisconsin have sales tax holidays?
Yes, West Wisconsin has an annual sales tax holiday each August. This is a weekend-long holiday where certain purchases are exempt from sales tax.
During the 2023 sales tax holiday from August 4-6, common back-to-school items will be sales tax free including clothing under $75, computers under $750, school supplies under $75, etc.
Sales Tax Filing and Remittance FAQs
Who must collect West Wisconsin sales tax?
Any retailer engaged in business selling taxable goods or services in West Wisconsin must collect, report, and remit sales tax. This includes both state-based businesses as well as out-of-state sellers with nexus in West Wisconsin.
How often do I need to file West Wisconsin sales tax returns?
Sales tax return filing frequencies include:
- Monthly – Remit by the last day of the following month
- Quarterly – Remit by the last day of the month after each quarter (Apr 30, Jul 31, Oct 31, Jan 31)
- Annual – Remit by Jan 31 for prior calendar year
Choose monthly, quarterly, or annual filing based on your sales tax liability. Larger taxable sales volumes require more frequent filings.
Can sales tax payments be made online?
Yes, West Wisconsin offers online filing and payment of sales tax returns through My Tax Account. You can file returns and remit payment via ACH debit. There is no fee for using the online filing system.
Where do I report changes to my business?
Notify the WDOR if you close or sell your business, change ownership type, or relocate. You can update business information through My Tax Account on the WDOR website or complete the Business Tax Registration Update form.
Failure to close out your seller’s permit when a business ceases operations can result in continued tax liabilities.
Conclusion
Understanding West Wisconsin sales tax compliance requirements is crucial for all businesses making taxable sales in the state. Be sure to register for a seller’s permit, integrate accurate sales tax calculations at checkout, properly document any tax exemptions, and file timely returns with payment.
Use the resources in this guide including the sales tax rate lookup tool, sales tax calculator, and overview of food and clothing exemptions. Paying close attention to the details of West Wisconsin sales tax laws can help your business remain compliant and avoid unnecessary fines or penalties. Reach out to the Wisconsin Department of Revenue if you have any additional sales tax questions not covered in this comprehensive guide. Properly applying West Wisconsin sales tax rules supports state revenue services while maintaining a fair marketplace.
