Capital Gains Tax for Wisconsin (2026)
Wisconsin (WI) Key Facts
State Capital Gains Rate
7.65%
Taxed As
Ordinary income
Federal Rate Applies
Yes (0%, 15%, or 20%)
Long Term vs Short Term
Both taxed at state level
How This Calculator Works in Wisconsin
This calculator estimates your combined federal and Wisconsin capital gains tax. Enter your gain amount, holding period, and income to see your estimated tax.
Wisconsin Overview
Wisconsin taxes capital gains as ordinary income at up to 7.65%, but offers a 30% exclusion for long-term gains on certain assets. Federal capital gains taxes also apply, with long-term rates of 0%, 15%, or 20% depending on income. The combined state and federal burden should be considered when planning asset sales or investment strategies.
How Wisconsin Compares
Wisconsin's capital gains rate of 7.65% compares to Minnesota at 9.85% and Illinois at 4.95%. State capital gains taxes significantly impact net investment returns.
| State | Top Rate | Notes |
|---|---|---|
| Minnesota | 9.85% | Minnesota has a capital gains rate of 9.85%. |
| Illinois | 4.95% | Illinois has a capital gains rate of 4.95%. |
| Michigan | 4.25% | Michigan has a capital gains rate of 4.25%. |
Wisconsin's capital gains rate of 7.65% compares to a national average of approximately 5.04%. This is above the national average.
Tips for Wisconsin Residents
- 1Wisconsin taxes capital gains as ordinary income at up to 7.65%, but offers a 30% exclusion for long-term gains on certain assets.
- 2Federal long-term gains (held 1+ year) are taxed at 0%, 15%, or 20%. Wisconsin's state tax applies on top of the federal rate.
- 3Hold investments over one year to qualify for lower federal long-term rates rather than ordinary income rates.
- 4Tax-loss harvesting—selling losing investments to offset gains—reduces both federal and Wisconsin state capital gains tax.
- 5Consider the combined federal + state rate when planning large asset sales. The total can exceed 31.5% for high earners.