What is Exempt from Wisconsin Sales Tax?

The majority of in-state retail sales in Wisconsin are subject to a sales tax. In Wisconsin, municipal taxes may be in addition to the 5% state sales tax. While the tax is generally applied to purchases, there are some exceptions that permit the selling of some items without the tax. What is exempt from the Wisconsin sales tax will be covered in this article.

1. Food and beverages sold in grocery shops for consumption off-premises are some typical goods that are free from Wisconsin sales tax. 2. Prescription medications and insulin. 3. Medical equipment and supplies. 4. Apparel priced at less than $75 per item. Agricultural supplies including seeds and fertilizer, educational resources like textbooks and workbooks, manufacturing apparatus, and equipment. Sales Tax on Automobiles in Wisconsin

In Wisconsin, the sales tax rate for automobiles is 5% plus any relevant local taxes. There are several exceptions that might, though. For instance, you can be qualified for a credit against the sales tax due on the new automobile if you trade in an old car when buying a new one. Additionally, you can be eligible for a partial sales tax exemption if you buy an automobile to use for your company.

You must submit an application for a certificate of exemption to the Wisconsin Department of Revenue in order to become tax exempt in Wisconsin. The certificate enables you to buy things that will be used for exempt purposes without having to pay sales tax. Charitable organizations, religious institutions, and governmental bodies are a few examples of exempt purposes. Purchases made outside of Wisconsin and the Wisconsin Sales Tax

If an item is bought outside of Wisconsin and used or consumed there, Wisconsin does charge sales tax. For instance, you might have to pay sales tax if you order something online and have it delivered to Wisconsin. You won’t have to pay sales tax, though, if you buy anything outside of Wisconsin and only use it there. Wisconsin’s Standard Deduction

For state income taxes, Wisconsin does offer a standard deduction. The standard deduction for married taxpayers filing jointly in 2021 is $12,980; for single filers it is $6,490; and for taxpayers who are the head of household it is $9,740. It is crucial to remember that Wisconsin does not permit people who did not itemize on their federal tax return to do so on their state tax returns.

In conclusion, consumers and companies can save money on purchases by being aware of what is excluded from Wisconsin sales tax. It is always preferable to get advice from a tax expert or the Wisconsin Department of Revenue if you are unsure if an item is exempt from sales tax.