State tax burden up despite generally steady rates

January 8, 2022

Wisconsinites saw an increase in taxes paid as a percentage of personal income in 2021 as a surge in economic activity following the early stages of the COVID-19 pandemic grew collections faster than income rose, a new report found.

State tax collections increased 9.2% in fiscal 2021 while personal income for 2020 increased 5.2%, according to a new report from the Wisconsin Policy Forum. As a result, the state tax burden climbed from 6.7% to 7% of personal income.

Property and local taxes, however, dipped a tenth to 3.5% of personal income. Combined, state and local taxes were 10.5% of personal income, up from 10.3% in 2020.

The report attributed the increase in state taxes to the recovery from the COVID-19 pandemic, effects of federal stimulus payments and court decisions related to out-of-state and e-commerce. See the report.

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