Sales tax is a tax imposed by state and local governments on the sale of goods and services and is usually calculated as a percentage of the sale price. Sales tax is sometimes referred to as retail sales tax.
In Wisconsin, sales tax is administered by the Wisconsin Department of Revenue. The state imposes a 5% sales tax on the sale of most goods and certain services. Local jurisdictions, such as counties and cities, can also impose additional sales taxes, known as county and stadium taxes, which can make the total sales tax rate higher than the state rate. The combined sales tax rate varies throughout the state, depending on the local taxes that apply. Certain items, such as groceries, prescription drugs, and some agricultural supplies, are exempt from Wisconsin sales tax. Businesses selling taxable goods or services in Wisconsin are required to collect sales tax from customers and remit it to the state. The collected tax is then used to fund various state and local government services.