Filing taxes is rarely something people look forward to, but it is an important part of how our state operates. In Wisconsin, individual income taxes make up about 45% of state tax collections.

Many taxpayers across Wisconsin will notice a larger tax refund this year than usual. I was recently looking at February’s tax collections and saw that income tax refunds are up more than 27% compared to last year. This means that many of you will be getting a bigger refund from the State of Wisconsin than in prior years. So far, more than $700 million has been returned to taxpayers this tax season. I will be watching to see where that total lands by the end of filing season.

There are a couple of key reasons for this change. Our bipartisan state budget included $1.3 billion in income tax relief through a combination of middle-class tax cuts and retirement income tax exemptions. However, Wisconsin withholding tables were not updated to reflect these changes. As a result, more has been withheld from paychecks than necessary, leading to larger refunds at filing time.

After passing the budget, we continued to cut taxes for hardworking Wisconsinites this session. Though you will not see the benefits reflected in this year’s refund, you will begin to see the effects next year. We cut taxes by more than $400 million by exempting overtime pay and tips from income tax. This targeted tax relief will have a big impact down the road for those who work in the service industry, healthcare, and the supply chain, allowing them to keep more of what they earn.

It is no secret that the cost of living has increased significantly over the past few years. Families are facing higher grocery bills, rising energy costs, and continued pressures from the housing market. Many household budgets are tight and inflation over the past few years has only added to the strain.

As affordability remains top of mind for most Americans, tax policy is an important factor in whether people choose to move to, or stay in, Wisconsin. Nationwide trends show people moving to states with warmer weather and lower taxes. While the State Legislature cannot change Wisconsin’s weather, we can work to make our state more competitive by keeping our tax rates competitive with our neighbors.

As April 15th approaches, do not forget to file your taxes. You can learn more about how to do so through the Wisconsin Department of Revenue’s website:

If you need assistance with any state-related matters, please call my team at the State Capitol – 608-266-0703 – or email me – Sen.Marklein@legis.wisconsin.gov. My team is ready and willing to help navigate your state government, clear obstacles, and receive your input.