Sales Tax Rules
Wisconsin imposes a state sales tax rate of 5%, with a maximum combined rate (state plus local) of 6.1% when local taxes are added. Economic nexus is triggered at $100,000 in sales — meaning out-of-state businesses that exceed this threshold must collect and remit Wisconsin sales tax. SaaS and digital software products are taxable in Wisconsin. Groceries are exempt from state sales tax.
SaaS Tax Details
SaaS is generally taxable as a service to tangible personal property.
Grocery Details
Groceries are exempt; includes most food for home consumption.
What is the sales tax rate in Wisconsin?
Wisconsin's state sales tax rate is 5%. When local taxes are added, the maximum combined rate can reach 6.1%. The actual rate you pay depends on the county and city where the purchase is made.
What is the economic nexus threshold in Wisconsin?
Wisconsin requires out-of-state businesses to collect sales tax once they exceed $100,000 in sales in a calendar year. Once nexus is established, the business must register, collect, and remit Wisconsin sales tax.
Is SaaS taxable in Wisconsin?
Yes. Wisconsin considers SaaS (Software as a Service) taxable. Businesses selling SaaS products to Wisconsin customers must collect sales tax. SaaS is generally taxable as a service to tangible personal property.
Are groceries taxed in Wisconsin?
Groceries are generally exempt from sales tax in Wisconsin. Groceries are exempt; includes most food for home consumption.
Are digital goods taxable in Wisconsin?
Yes. Wisconsin taxes digital goods including downloaded software, music, movies, and e-books. Businesses selling digital products to Wisconsin customers should collect sales tax.
Are clothing items exempt from sales tax in Wisconsin?
Clothing is subject to sales tax in Wisconsin at the standard state rate.
How often do I need to file sales tax in Wisconsin?
Wisconsin requires sales tax filing on a Monthly, Quarterly, or Annual. Online filing is available through the official Department of Revenue portal.
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Official Source
Wisconsin Department of Revenue
Last verified: 2026-03-26 · Always confirm current rates with your tax advisor before filing.