April 2025: Wisconsin’s Income Tax Marriage Penalty

There is a host of literature showing the many physical, emotional and financial benefits of marriage. Obviously, paying higher taxes is not among them. Yet, Wisconsin is one of 15 states with a tax structure that “penalizes” some couples if they are married.

Wisconsin’s Income Tax
Wisconsin’s income tax Wisconsin’s income tax has a lot of moving parts, but the most relevant for understanding the state’s “marriage penalty” are the standard deduction, tax brackets and married couple credit. Tax filing begins with income (Wisconsin adjusted gross income) from which filers subtract a standard deduction. Unlike the federal deduction, which is a single amount that does not depend on income, Wisconsin’s “sliding scale” standard deduction declines as income rises. It is ultimately eliminated for higher-income filers. The size of the deduction and the rate at which it declines differs for single and married filers.

Read the full March 2025 Wisconsin Counties article here.