As an e-commerce seller, you will need to collect sales tax in Wisconsin if you have:
(1) gross sales exceeding $100,000 in the previous or current calendar year (economic nexus), or
(2) physical presence in Wisconsin (physical nexus).
Below, we will highlight some of the basic provisions of Wisconsin sales tax law.
What is the tax rate range for Wisconsin?
State: Wisconsin’s state sales tax rate is 5%.
Local: 68 Wisconsin counties impose a 0.5% tax. The remaining 4 counties do not impose a county tax.. What is the county rate?
Do you have physical or economic nexus in Wisconsin?
Physical nexus. Certain business activities create physical nexus in Wisconsin. If you have physical nexus, you are required to collect and remit sales tax on all sales that are shipped to Wisconsin. Examples of business activities that can create physical nexus in Wisconsin include:
- Any retailer owning any real property in Wisconsin.
- Any retailer leasing or renting out any tangible personal property, or items or property, if such property or items are located in Wisconsin.
- Any retailer maintaining, or using, permanently or temporarily, directly or through a subsidiary, agent, or some other person, an office, place of distribution, sales or sample room, warehouse, or other place of business in Wisconsin.
- Any retailer having any representative, including a manufacturer's representative, agent, salesperson, canvasser, or solicitor operating in Wisconsin under authority of the retailer or its subsidiary for the purpose of selling, delivering, or the taking orders for any property, goods, or services subject to the sales tax.
- Any retailer selling tangible personal property, or items, property, or goods under, or taxable services for storage, use, or other consumption in Wisconsin, unless otherwise limited by federal law.
Section Tax 77.51(13g), Wis. Stats.
Economic nexus. Remote sellers and marketplace providers that have gross sales exceeding $100,000 in the previous or current calendar year must collect and remit Wisconsin sales or use tax on taxable sales. Additional information:
- The annual gross sales amount includes both taxable and nontaxable sales into Wisconsin.
- Remote sellers include gross sales made on its behalf by a marketplace facilitator in determining if the threshold is met.
- Marketplace facilitators include gross sales made on its own behalf and on behalf of marketplace sellers in determining if the threshold is met.
- If either threshold is met, the seller must begin to collect Wisconsin sales and use taxes on the next sale after the date the threshold is met.
- A remote seller or marketplace facilitator that does not qualify for the small-seller exception but only makes nontaxable sales in Wisconsin is not required to register to collect Wisconsin sales or use tax.
Remote Sellers – Wayfair Decision and Marketplace Providers and Sellers
What are examples of sales of taxable items?
- Tangible personal property, unless an exemption applies
- Clothing (except during the sales tax holiday)
- Certain services
- Certain digital goods
- Leases and rentals of tangible personal property
What are examples of sales of nontaxable/exempt items?
- Food (except soft drinks and prepared food)
- Digital goods
- Prescription drugs
- Farm equipment, machinery, and consumables
- Software as a Service (SaaS), unless a taxable product or service is provided in the transaction
What Is Exempt? - Publication 201
Are there any sales tax holidays?
Wisconsin does not have any sales tax holidays.
Is Wisconsin a member of the SST (Streamlined Sales Tax)?
Currently, Wisconsin is a full member of the Streamlined Sales Tax Governing Board (SSTGB).
How to get a sales tax permit / links to register in Wisconsin?
You can register online at:
Streamlined Sales Tax Registration System
Wisconsin’s Online Registration System
Wisconsin State and County Sales Tax Rate Look-Up