Updated on October 4, 2024
This rate is unlikely to rise significantly in the future years. Wisconsin enacted legislation that strictly regulates growth in total property tax income collected by cities, municipalities, counties, and schools.
How the Wisconsin Property Tax Works
Wisconsin property taxes can be paid in two different installment plans. The first option requires all taxes to be paid by January 31. The second option offers greater flexibility, allowing homeowners to make two separate payments due on January 31 and July 31.
Taxes are calculated based on two key factors: the assessed value of the property and the overall property tax rate. District assessors annually determine the assessed value, which should closely align with the market value—the price at which a home could realistically sell. However, in some areas, assessed values can vary by more than 25% from market values. To address this, Wisconsin equalizes values across districts each year and establishes an assessment ratio for each area.
For example, if your home has an assessed value of $100,000 and the assessment ratio is 0.80, the market value is estimated to be $125,000. If you believe your property has been incorrectly assessed, you can appeal through the local Board of Review or Board of Assessors in Milwaukee.
Many Wisconsin homeowners benefit from a variety of tax advantages. The most popular is the School Levy Tax Credit. This credit is available to anybody that pays property taxes plus is based on both the school district levy and the value of their home. Another prominent credit is the Lottery and Gaming Credit, which is available to Wisconsin homeowners residing in their primary house. The final benefit is the First Dollar Credit, which is provided to real estate owners who make qualified improvements to their property.
Read more: Publication 530 (2023), Tax Information for Homeowners | Internal Revenue Service
What are the Wisconsin Property Tax Rates?
The rates charged by Wisconsin homeowners differ based on where they reside. Cities, towns, municipalities, and school districts all levy various taxes at different rates. Rates are computed by dividing the entire levy (the amount of income a tax district wishes to generate) by the district’s total assessed value.
To give an easy example, if a district’s levy equals $1,000 and the entire assessed value is $100,000, the rate is 0.01, or 1%. In 2013, the Wisconsin legislature passed legislation limiting total levies. Tax districts are limited to raising a tax through a public vote, whenever there is new building, or in a few other exceptional circumstances.
Tax rates in Wisconsin are commonly represented as dollars of taxes per thousand of assessed value. Because assessed values on similar property vary from one taxation district to the next, tax rates in different locations are not always comparable.
Instead, effective rates allow for direct comparisons. An effective property tax rate is the yearly property tax payment expressed as a percentage of the home’s value.
County | Median Home Value | Median Annual Property Tax Payment | Average Effective Property Tax Rate |
---|---|---|---|
Adams | $140,000 | $2,135 | 1.53% |
Ashland | $115,300 | $1,961 | 1.70% |
Barron | $159,300 | $2,557 | 1.61% |
Winnebago | $158,400 | $3,211 | 2.03% |
Wood | $133,700 | $2,492 | 1.86% |
Source: SmartAsset
Milwaukee County
Milwaukee County is Wisconsin’s largest by population and is located on the western side of Lake Michigan, approximately one hundred miles north of Chicago. It also has among the highest property taxes in Wisconsin.
Milwaukee County’s average effective property tax rate is 2.53%. That’s over twice the national average of 0.99%. Milwaukee’s overall property tax rate is approximately $26.07 per $1,000 assessed value.
Dane County
Dane County, just west of Milwaukee, is home to Wisconsin’s state capital, Madison. Dane County homeowners pay among the highest property taxes in Wisconsin. In dollar terms, Dane County homeowners pay the highest median annual property tax in the state ($5,853).
Waukesha County
Waukesha County is a mostly suburban county just outside of Milwaukee. Waukesha County has much lower tax rates than adjacent Milwaukee County. Waukesha County’s average effective tax rate is 1.40%, which is lower than Milwaukee County’s 2.53%.
Brown County
Brown County, with an estimated population of around 270,000, is Wisconsin’s fourth-largest county. It is located at the end of Green Bay and includes the city of the same name. For Green Bay, the tax rate is around $7.58 per $1,000 assessed value.
Racine County
While Racine’s property tax rates are among the highest in the state, these rates are still significantly lower than those in Milwaukee County.
Racine County’s median effective property tax rate is 2.07%. At that rate, a $200,000 home would cost $4,140 in property taxes per year.
Where to Go for Wisconsin Property Tax Help
If you need additional assistance with Wisconsin property taxes or general Wisconsin state tax information, please visit XOA TAX Service. We can connect you with a tax consultant experienced in your state. A skilled tax specialist may handle your taxes for you without the need to visit an office.
Frequently Asked Questions (FAQs) About Wisconsin Property Taxes
General Questions
1. What is the average effective property tax rate in Wisconsin?
In Wisconsin, the average effective property tax rate stands at 1.51%, placing it among the top states with the highest rates in the nation. In fact, this rate ranks as the eighth-highest among all U.S. states.
2. How do property taxes in Wisconsin compare to national averages?
Wisconsin ranks eighth in the nation for its high property tax rates, with an average effective property tax rate of 1.51%. This is significantly higher than the national average of 0.99%, making Wisconsin one of the states with the steepest property tax burdens.
County-Specific Questions
3. How do property taxes in Marathon County compare to the state median?
In Marathon County, homeowners experience some relief in property taxes compared to the state median. On average, they pay $3,021 annually, which is approximately $400 less than the overall median for the state. This difference can lead to significant savings over time.
4. What is the property tax rate in Winnebago County’s largest city, Oshkosh?
In Winnebago County’s largest city, Oshkosh, the property tax rate stands at approximately $16.18 for every $1,000 of assessed property value. For a home valued at $100,000, this translates to about $1,618 annually in property taxes. Additionally, Winnebago County’s average effective property tax rate is notable, ranking seventh highest in the state at 2.03%.
5. How do property tax rates in Kenosha County compare to neighboring Lake County, Illinois?
In comparing property tax rates between Kenosha County in southeastern Wisconsin and its neighbor, Lake County, Illinois, you’ll find that Kenosha County boasts notably higher rates. Specifically, Kenosha County’s average effective property tax rate stands at 2.10%. This figure surpasses Lake County, Illinois, where the average effective rate is relatively lower at 1.18%. Despite being in close proximity, these two areas exhibit distinct differences in property tax rates.
Calculation Methods
6. How can you calculate your property taxes in Wisconsin?
Taxes are calculated using two important numbers: the assessed value of a property and the overall property tax rate. District assessors in each tax district determine the assessed value on an annual basis. While assessed value should be nearly similar to market value—the price at which a home could actually sell—in some locations, it varies by more than 25%. As a result, the state of Wisconsin yearly equalizes values across districts and produces an assessment ratio for each.
Calculating Your Property Taxes in Wisconsin:
- Identify Your Assessed Value: Use the assessed value determined by your district assessor.
- Determine the Effective Tax Rate: Look up the effective property tax rate for your county. This rate reflects the median property tax paid as a percentage of the median home value in your area.
- Calculate Your Estimate: Multiply your home’s assessed value by the county’s effective tax rate. This will provide an estimation of your property tax.
Keep in mind, this is an estimation based on median values and rates, so actual taxes could vary. Utilizing an online property tax calculator can further simplify this process by automating these calculations, helping you understand your potential liabilities more clearly.