Recent statistics show that Wisconsin has a somewhat lower cost of living than Illinois. Wisconsin’s overall cost of living is around 5% lower than Illinois’ overall cost of living, with housing expenses playing the largest influence. In Wisconsin, the median price of a home is around $200,000, whereas in Illinois, it is roughly $225,000. The cost of living can, however, vary significantly depending on the area you choose to reside in, so it is crucial to keep that in mind. Wisconsin and Minnesota Tax Reciprocity
There is excellent news for anyone who reside and work in Wisconsin and Minnesota because these states have a tax reciprocity agreement. As a result, citizens of either state who work across the border are only required to file their taxes in the state where they now reside, not in both states. This makes tax preparation easier and may result in tax savings for locals. How Much of a Paycheck Does Wisconsin Taxes Take Out?
The percentage of your income that Wisconsin taxes will be will depend on your salary and tax bracket. In Wisconsin, the income tax system is progressive, which means that individuals with greater incomes must pay a larger share of it in taxes. For instance, the tax rate for people making between $0 and $11,910 is 3.54%, while the rate for people making between $263,480 and $319,980 is 7.65%. Is Wisconsin a State with High Taxes? Comparing Wisconsin to other states in the nation, it is not thought to have a high tax rate. Recent statistics place Wisconsin’s state and local tax burden at 21st in the country. The state’s 5% sales tax rate is lower than the 6% average for the country. However, it is significant to note that Wisconsin’s property taxes can be substantial, which might affect the state’s people’ overall tax burden. Wisconsin’s 2021 income tax rate is
– 3.54% of the first $11,910 in taxable income between $11,910 to $23,810 in taxable income, 4.65% – 6.27% of taxable income in the range of $23,810 and $263,480 between $263,480 and $319,980 in taxable income: 7.65% 7.75% of taxable income over $319,980
Conclusion: Despite the fact that Wisconsin’s total cost of living is a little lower than Illinois’, the cost of living considerably depends on the place you choose to reside in. Additionally, Wisconsin has a progressive income tax system, a tax reciprocity agreement with Minnesota, and comparatively little state and municipal taxation. It’s crucial to evaluate all aspects of moving, such as cost of living, taxes, employment prospects, and quality of life.