Minnesota vs Wisconsin taxes

Where the difference comes from

Two lines make up the gap, and neither state has a local income tax to add.

Income tax. Minnesota’s four brackets start at 5.35% and reach 9.85%, after a standard deduction of $15,300. Wisconsin’s four start at 3.5% and reach 7.65%, after a deduction of up to $13,960 that shrinks as income rises, plus a $700 exemption. On $75,000 a single filer pays $3,577 in Minnesota and $2,944 in Wisconsin.

Minnesota Paid Leave. New for 2026, and modeled here at the 0.44% of wages an employer may deduct: $330 on $75,000. Wisconsin takes nothing from wages beyond income tax.

Together, a single filer keeps $963 more in Wisconsin on $75,000.

For couples, it is mostly the paid-leave premium

Married couples filing jointly see a different picture. Minnesota’s joint brackets and deduction are wider, and on moderate incomes the two income taxes nearly match: on $75,000 jointly Minnesota charges $2,375 and Wisconsin $2,320, a difference of $55. The Paid Leave premium, $330, is most of the gap.

That stays true for a couple up to about $181,000: below it, the premium costs more than the difference in income tax. A couple on $150,000 keeps $1,104 more in Wisconsin, of which $660 is the premium. If your employer pays more than its half, a Minnesota couple’s figure improves by that much.

At higher salaries

For a single filer the income tax gap does most of the work from the start, and it widens with pay: $520 on $50,000, $2,293 on $150,000 and $5,625 on $250,000. Minnesota’s third bracket, 7.85%, begins at $109,430 of taxable income and its top rate at $203,150. Wisconsin’s 5.3% band runs all the way to $332,720 before its top rate starts. On $500,000 Wisconsin keeps $13,086 more.

Commuting across the St. Croix

There is no reciprocity between the two states. The Minnesota Department of Revenue lists agreements with Michigan and North Dakota only, and the Wisconsin Department of Revenue lists Illinois, Indiana, Kentucky and Michigan.

So a Wisconsin resident working in the Twin Cities pays Minnesota income tax on those wages: Minnesota taxes nonresidents on wages earned while physically in the state. Wisconsin then taxes all of a resident’s income, wherever it is earned, and allows a credit for the net tax paid to the other state, capped at the Wisconsin tax. Because Minnesota’s tax on the same wages is usually the larger, the credit tends to wipe out the Wisconsin tax on them, and the commuter ends up paying about Minnesota’s figure.

The practical point: Wisconsin’s lower tax is worth most to people who work in Wisconsin. Days worked from home in Wisconsin for a Minnesota employer are a different matter, because Minnesota does not tax a nonresident’s wages for work done in another state.

What the take-home figure does not count

Minnesota taxes Social Security benefits above set income thresholds, which matters for retirees; this page models wages only. Both states index their brackets to inflation every year, so the thresholds above move each January. Property and sales taxes are not in these figures.

Questions people ask

Do you take home more in Minnesota or Wisconsin on $75,000?

Wisconsin, by $963 a year, or $80 a month, for a single filer in 2026. That counts federal tax, Social Security, Medicare, state income tax and every state payroll deduction.

Is the difference the same at every salary?

No, but the same side stays ahead. The gap is $327 a year at $30,000 and $5,625 at $250,000, for a single filer.

Do Minnesota and Wisconsin still have a reciprocity agreement?

No. Minnesota's reciprocity agreements are with Michigan and North Dakota only, and Wisconsin's are with Illinois, Indiana, Kentucky and Michigan. A commuter between the two states files in both: a nonresident return where the work is done, and a resident return at home that gives a credit for the tax paid to the other state.

What is Minnesota Paid Leave, and will my employer really deduct it?

A state program of paid family and medical leave whose premiums began on January 1, 2026. The premium is 0.88% of wages, the employer must pay at least half, and it may deduct up to 0.44% from employees. This page assumes the full 0.44%; some employers cover more of it. Wisconsin has no equivalent deduction.

Does either state have a city income tax?

No. No Minnesota city levies an income tax, and there is no local income tax anywhere in Wisconsin. The figures here hold across both states.

What this comparison covers

Income tax and payroll deductions on wages: federal income tax, Social Security, Medicare, state income tax, every state payroll deduction. It does not compare sales tax, property tax, housing or the cost of living, which can outweigh the difference in take-home pay. Figures assume the standard deduction, no dependents and no pre-tax retirement contributions. See how we calculate.