Wisconsin Capital Gains Tax (2026)
Wisconsin taxes capital gains as ordinary income on a graduated scale from 3.5% up to a top rate of 7.65%. Wisconsin excludes 30% of net long-term capital gains, which the calculator models. Run your own numbers with the free capital gains tax calculator, which estimates federal, NIIT, and Wisconsin tax together.
In short: federal long-term rates of 0%, 15%, or 20% apply everywhere. Wisconsin adds state tax on top, at up to 7.65%.
How Wisconsin treats capital gains
Wisconsin taxes capital gains as ordinary income on a graduated scale from 3.5% up to a top rate of 7.65%. Wisconsin excludes 30% of net long-term capital gains, which the calculator models. The estimate subtracts Wisconsin's sliding-scale standard deduction (up to $13,560 single, shrinking as income rises, per the latest published table).
Good news if you hold long. Wisconsin excludes 30% of net long-term capital gains from state tax, and the calculator models that exclusion.
2026 Wisconsin income tax brackets
| Taxable income | Rate |
|---|---|
| $0 – $15,110 | 3.5% |
| $15,110 – $51,950 | 4.4% |
| $51,950 – $332,720 | 5.3% |
| Over $332,720 | 7.65% |
Single-filer taxable income. Married thresholds are doubled.
A worked example
Say you are a single filer in Wisconsin with $60,000 of taxable income who sells stock held over a year for a $25,000 long-term gain. Federal tax on the gain is $3,750 (all of it lands in the 15% bracket at this income; no NIIT applies below $200,000 MAGI). Wisconsin adds an estimated $1,081, for a combined $4,831, an effective 19.3% on the gain. These figures use the same math as the calculator, 2026 federal brackets per IRS Rev. Proc. 2025-32, and state figures from the Tax Foundation's State Individual Income Tax Rates and Brackets, 2026.
Frequently asked questions
Does Wisconsin tax capital gains?
Yes. Wisconsin taxes capital gains as ordinary income. Wisconsin taxes capital gains as ordinary income on a graduated scale from 3.5% up to a top rate of 7.65%. Wisconsin excludes 30% of net long-term capital gains, which the calculator models.
What will I pay on a long-term gain in Wisconsin?
Combined, our worked example ($25,000 long-term gain on $60,000 of income, single) comes to $4,831: $3,750 federal plus $1,081 Wisconsin tax, an effective 19.3%.
Do I still owe federal capital gains tax in Wisconsin?
Yes. Federal capital gains tax (0%, 15%, or 20% long-term, ordinary rates short-term, plus the 3.8% NIIT for high earners) applies no matter your state. The free calculator estimates federal, NIIT, and Wisconsin tax together.
More
- Every state's capital gains treatment
- Capital gains tax explained: short-term vs long-term
- Neighbors alphabetically: West Virginia · Wyoming
This page is general information, not tax, legal, or financial advice. Rates and rules can change and depend on your situation. Confirm details with a tax professional, the IRS, or your state's revenue department.
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