A tax is a charge or levy of money made by a governmental entity (state, local, or federal) against a taxpayer—usually a U.S. citizen or a person living or working in the United States. There are many kinds of taxes, including income tax, capital-gains tax, property tax, franchise tax, gift tax, ad valorem tax, sales tax, use tax, inheritance tax, and estate tax.
In Wisconsin, as in other states, taxpayers are subject to various types of taxes levied by state and local governments, as well as the federal government. Wisconsin imposes a state income tax, which is progressive and varies based on the taxpayer's income level. The state also collects a capital gains tax as part of the income tax on profits from the sale of assets. Property taxes in Wisconsin are primarily administered by local governments and are a significant source of revenue for funding public services such as education and infrastructure. Wisconsin does not have a franchise tax. However, it does impose a sales tax on the purchase of goods and services, and a use tax for goods purchased out of state but used within Wisconsin. The state does not have a gift tax, but it does have an estate tax that is linked to the federal estate tax; however, due to changes in federal law, Wisconsin's estate tax is not currently imposed. Inheritance tax has been repealed in Wisconsin. It's important for taxpayers to understand their obligations under these various tax systems and to comply with all applicable laws and regulations.