Selling a business in Wisconsin: what the state takes (2026)
Wisconsin’s top individual income tax rate is 7.65%. Here is what an owner selling company stock pays, with 2026 rules from official sources and worked examples at $10 million, $25 million and $50 million.
- 7.65%
- Top Wisconsin income tax rate (2026)
- $1,338,750
- State tax on a $25M long-term gain
- 29.2%
- Combined federal and state rate on $25M
- 19 of 51
- Rank by total tax on $25M (1 = highest)
How Wisconsin taxes a business sale
- Income tax
- Top rate 7.65%: Over $332,720 (single, 2026 per Tax Foundation; $323,290 for 2025 per DOR).
- Long-term capital gains
- 30% of net long-term capital gain is excluded, with no dollar cap (Wis. Stat. 71.05(6)(b)9; depreciation recapture and other ordinary-income amounts are not eligible). The remaining 70% is taxed at up to 7.65%, an effective rate of about 5.36%.
- Relief that applies only in some sales
- Farm assets get a 60% exclusion. Under Wis. Stat. 71.05(6)(b)25, gain on business assets held more than a year is fully excluded when they are sold to relatives within the third degree of kinship; this generally does not apply to a third-party sale.
- Local taxes
- No local income taxes.
Three worked examples
| Long-term gain | $10,000,000 | $25,000,000 | $50,000,000 |
|---|---|---|---|
| Federal capital gains tax (20%) | $2,000,000 | $5,000,000 | $10,000,000 |
| Net investment income tax (3.8%) | $380,000 | $950,000 | $1,900,000 |
| Wisconsin tax | $535,500 | $1,338,750 | $2,677,500 |
| Total tax | $2,915,500 | $7,288,750 | $14,577,500 |
| Effective combined rate | 29.15% | 29.15% | 29.15% |
| Net proceeds after tax | $7,084,500 | $17,711,250 | $35,422,500 |
| Extra tax versus Texas | $535,500 | $1,338,750 | $2,677,500 |
Seller’s tax calculator
Estimate federal and state tax on a stock sale and what is left before fees and debt.
- Long-term capital gain
- $25,000,000
- Federal capital gains tax (20%)
- $5,000,000
- Net investment income tax (3.8%)
- $950,000
- Wisconsin tax
- $1,338,750
- Gain excluded or deducted
- $7,500,000
- Taxable gain at 7.65%
- $1,338,750
- Total tax
- $7,288,750
- Effective rate on the gain
- 29.15%
- Net proceeds after tax
- $17,711,250
Illustration, not tax advice. Assumes a resident individual, the whole gain long-term, top marginal rates, no state credits, installment terms, QSBS exclusion or other planning, and no local taxes. Net proceeds are before transaction fees, debt repayment, escrows and earn-outs. Rates are for tax year 2026 where published; see the methodology.
Compare with other states
Neighboring states
Common comparisons
- California37.1% combined, $15.72M net
- New York34.1% combined, $16.48M net
- Texas23.8% combined, $19.05M net
- Florida23.8% combined, $19.05M net
- Nevada23.8% combined, $19.05M net
- Washington33.5% combined, $16.63M net
- Tennessee23.8% combined, $19.05M net
Methodology and sources
Wisconsin figures are for tax year 2026. Rates from Wis. Stat. 71.06(1r) (taxable years after 2024). DOR's latest published brackets are for 2025 (top bracket over $323,290); the 2026 indexed threshold of $332,720 is from Tax Foundation. The examples assume a resident individual selling privately held stock for a long-term gain equal to the sale price (zero basis), with every dollar taxed at the top marginal rates, the federal 20% capital gains rate and the 3.8% net investment income tax, and no planning, credits or local taxes. Full assumptions are in the report methodology.
All 50 states and DC with source URLs.
- 1Wis. Stat. 71.06 (rates; sub. (1r) for years after 2024)
- 2Wis. Stat. 71.05(6)(b)9 (30% capital gain exclusion) and (b)25
- 3Wisconsin DOR, Tax Rates (2025 brackets)
- 4Tax Foundation, State Individual Income Tax Rates and Brackets, 2026. Secondary source
Data last updated October 26, 2026.
Cite this research
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Citation
Laurent Capital Research, “The Seller’s Tax Map: What Selling a Business Costs in Every State (2026): Wisconsin,” 2026, https://laurent.capital/research/seller-tax-map/wisconsinLink (HTML)
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