By the numbers
Wisconsinites’ household debt, on average, is equal to 116% of their annual household income, recent data from the Federal Reserve shows.
The Fed’s analysis includes debt from mortgages, auto loans, and credit cards. It excludes student loans.
Compared to its Midwestern neighbors, Wisconsin’s debt-to-income ratio was the third lowest. The most indebted state in the Midwest was Indiana, with a 1.234 debt ratio. At the low end was Illinois, with a ratio of 1.064.
Wisconsin household debt grew rapidly during the early 2000s, with the debt-to-income ratio rising from 0.861 in 1999 to a peak of 1.479 in 2008, coinciding with the housing boom and the subsequent 2008 financial crisis. Wisconsin households shed debt over the following decade, falling to 1.145 in 2021.
The state with the highest debt ratio in 2025 was Hawaii at 2.025. The lowest state was New York, at 0.887. The District of Columbia, not a state, came in even lower at 0.494.
Wyatt Eichholz is a policy and legislative associate at the Badger Institute.
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