Wisconsin taxpayers to see $3,000 drop in tax bill

By the numbers

The average Wisconsin taxpayer will pay $3,183 less in taxes in 2026 due to the One Big Beautiful Bill Act going into effect next year, analysis by the Tax Foundation shows.

The legislation permanently extends tax cuts first enacted in 2017 under the Tax Cuts and Jobs Act. It also adds deductions for tips and overtime pay, increases the standard deduction and expands the child tax credit, in addition to other changes.

The Tax Foundation also projects that because of the structural changes to the tax code, over 14,900 jobs will be created in the Wisconsin in the long run.

Projections show that the highest tax cuts will take place in 2026, 2027, and 2028, before dipping in 2029. The impact of the cuts will then grow at a constant rate by about 2031 and beyond.

When the estimated tax cuts over the next ten years were averaged, the states with the largest tax cuts in absolute terms were Washington, Massachusetts, and Wyoming. Wisconsin was ranked 31^st between Iowa (30^th) and New York (32^nd). The states with the smallest tax cuts were West Virginia, New Mexico, and Mississippi.

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