11 July 2023
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No.
Among Midwestern states, Minnesota has the highest income tax rate in the highest-income tax bracket — 9.85% for an individual with annual income over $183,340.
Wisconsin is next, at 7.65%, for individuals earning over $304,170.
Illinois and Michigan both have flat tax rates of 4.95% and 4.25%, respectively. Iowa currently has a 6% top tax bracket but is phasing in a 3.9% flat rate by tax year 2026.
The Wisconsin Legislature approved a 2023-25 state budget, awaiting action by Gov. Tony Evers, that would eliminate one of the four tax brackets and reduce all income tax rates.
Wisconsin’s top rate would drop to 6.5%. Residents earning $1 million or more would save an average $30,286.A Wisconsin 3.25% flat tax would raise gross state product 4.5% and after-tax household income 5.27% and drop tax revenue 16.8%, the University of Wisconsin-Madison Center for Research on the Wisconsin Economy said in a February 2023 report.
This fact brief, originally published by Wisconsin Watch, is responsive to claims such as this one.
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