Wisconsin

Wisconsin Treats Poor Families Under Its Income Tax Better Than Other States

 

Wisconsin's 1999 income tax threshold — the income level at which families begin paying income tax:	Ranking among 42 states with income taxes
For two-parent families of four: $18,800.	15th highest
For single-parent families of three: $15,700.	16th highest
Wisconsin's 1999 income tax for working-poor and near-poor families:
For families of four with poverty-line incomes ($17,028): $400 refund.	4th lowest
For families of three with poverty-line incomes ($13,290): $257 refund.	7th lowest
For families of three with minimum-wage earnings ($10,712): $428 refund.	4th lowest
For families of four with income at 125% of poverty line ($21,285): $383.	15th highest
For families of three with income at 125% of poverty line ($16,613): $102.	21st highest (tie)
Wisconsin has consistently exempted families with below-poverty earnings from the income tax. In 1991, a family of four owed no tax until its income reached 3 percent above the poverty line. Wisconsin's tax threshold is now 10 percent above the poverty line. Under changes enacted in 1999, Wisconsin's tax threshold is scheduled to increase in the next two years.