Chapter 71 — INCOME AND FRANCHISE TAXES FOR STATE AND LOCAL REVENUES
45 sections in this chapter.
Wis. Stat. § 71.01 Definitions
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71.01 Definitions. In this chapter in regard to natural persons and fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds: (1) “Adjusted gross income”, when not preceded by the word “federal”, means Wisconsin adjusted gross income, unless otherwise def…
Wis. Stat. § 71.02 Imposition of tax
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71.02 Imposition of tax. (1) For the purpose of raising revenue for the state and the counties, cities, villages and towns, there shall be assessed, levied, collected and paid a tax on all net incomes of individuals and fiduciaries, except fiduciaries of nuclear decommissioning t…
Wis. Stat. § 71.03 Filing returns; certain claims
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71.03 Filing returns; certain claims. (1) DEFINITION. In this section, “gross income” means all income, from whatever source derived and in whatever form realized, whether in money, property or services, which is not exempt from Wisconsin income taxes. “Gross income” includes, bu…
Wis. Stat. § 71.04 Situs of income; allocation and apportionment
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71.04 Situs of income; allocation and apportionment. (1) SITUS. (a) All income or loss of resident individuals and resident estates and trusts shall follow the residence of the individual, estate or trust. Income or loss of nonresident individuals and nonresident estates and trus…
Wis. Stat. § 71.05 Income computation
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71.05 (6) to (12), (19), (20), (25), (25m), and (26). (14) “Wisconsin net operating loss” of persons other than corporations means “federal net operating loss” adjusted as prescribed in s. 71.05 (6) (a) and (b), (7) to (12) and (19) to (21), except s. 71.05 (6) (b) 9., except tha…
Wis. Stat. § 71.06 Rates of taxation
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71.06 Rates of taxation. (1q) FIDUCIARIES, SINGLE INDIVIDUALS, AND HEADS OF HOUSEHOLDS; 2012 TO 2024. The tax to be assessed, levied, and collected upon the taxable incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and single indivi…
Wis. Stat. § 71.07 Credits
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71.07 Credits. (1) CLAIM OF RIGHT CREDIT. Any natural person may credit against taxes otherwise due under this chapter the decrease in tax under this chapter for the prior taxable year that would be attributable to subtracting income taxed for that year under the claim of right d…
Wis. Stat. § 71.09 Payment of estimated taxes
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71.09 Payment of estimated taxes. (1) DEFINITIONS. In this section: (a) “Farmers or fishers” are individuals, estates or trusts whose estimated gross income from farming or fishing for the taxable year is at least two-thirds of the total estimated gross income from all sources fo…
Wis. Stat. § 71.10 General provisions
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71.10 (4) for the same taxable year. 54mn. For taxable years beginning after December 31, 2024, for an individual who is a part-year resident of this state, the amount that is calculated by multiplying the applicable amount under subd. 54m. b. or c. by a fraction the numerator of…
Wis. Stat. § 71.12 Conformity
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71.12 Conformity. Unless specifically provided in this subchapter, fiduciaries shall be subject to all of the provisions, requirements and liabilities of this chapter, so far as applicable, unless the context requires otherwise. History: 1987 a. 312.
Wis. Stat. § 71.122 Definition
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71.122 Definition. In this subchapter, “Wisconsin taxable income” means federal taxable income, as defined in s. 71.01 (4), as modified under s. 71.05 (6) to (12), (19) and (20). History: 1997 a. 27.
Wis. Stat. § 71.125 Imposition of tax
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71.125 Imposition of tax. (1) Except as provided in sub. (2), the tax imposed by this chapter on individuals and the rates under s. 71.06 (1q), (1r), and (2) shall apply to the Wisconsin taxable income of estates or trusts, except nuclear decommissioning trust or reserve funds, a…
Wis. Stat. § 71.13 Filing returns
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71.13 Filing returns. (1) ESTATE OR TRUST. Annual returns of income of an estate or a trust shall be made to the department by the fiduciary thereof at or before the time such income is required to be reported to the internal revenue service under the internal revenue code. Under…
Wis. Stat. § 71.14 Situs of income
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71.14 Situs of income. For purposes of determining the situs of income under this subchapter: (1) The estate of a decedent shall be considered resident at the domicile of the decedent at the time of his or her death. (2) A trust created at death by will, contract, declaration of …
Wis. Stat. § 71.15 Income computation
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71.15 Income computation. The standard deduction shall not be allowed in computing the taxable income of an estate, a trust or a common trust fund. History: 1987 a. 312; 2001 a. 102; 2021 a. 127; 2025 a. 130.
Wis. Stat. § 71.16 Allocation of modifications
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71.16 Allocation of modifications. The Wisconsin modifications applicable to the Wisconsin taxable income or Wisconsin adjusted gross income of estates, trusts and beneficiaries thereof with respect to income derived from such estates or trusts shall be computed and allocated as …
Wis. Stat. § 71.17 General provisions
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71.17 General provisions. (1) ASSESSMENT OF TRUST INCOME DISTRIBUTABLE TO NONRESIDENT BENEFICIARY. The income of a trust distributable or distributed to a nonresident beneficiary shall be assessed as the income of other nonresidents is assessed. No personal exemptions shall be al…
Wis. Stat. § 71.19 Conformity
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71.19 Conformity. Unless specifically provided in this subchapter, partnerships and limited liability companies shall be subject to all of the provisions, requirements and liabilities of this chapter, so far as applicable, unless the context requires otherwise. History: 1987 a. 3…
Wis. Stat. § 71.195 Definition
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71.195 Definition. In this subchapter, “partnership” includes limited liability companies and other entities that are treated as partnerships under the Internal Revenue Code, and “partnership” does not include publicly traded partnerships treated as corporations under s. 71.22 (1…
Wis. Stat. § 71.20 Filing returns
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71.20 Filing returns. (1) Every partnership shall furnish to the department a true and accurate statement, on or before the date on which the partnership is required to file for federal income tax purposes, not including any extension, under the Internal Revenue Code, in the mann…
Wis. Stat. § 71.21 Computation
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71.21 Computation. (1) The net income of a partnership shall be computed in the same manner and on the same basis as provided for computation of the income of persons other than corporations. (2) The standard deduction shall not be allowed in computing the taxable income of a par…
Wis. Stat. § 71.22 Definitions
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71.22 Definitions. In this chapter in regard to corporations and to nuclear decommissioning trust or reserve funds: (1b) “Aggregate effective tax rate” means the sum of the effective tax rates imposed by a state, U.S. possession, foreign country, or any combination thereof, on th…
Wis. Stat. § 71.23 Imposition of tax
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71.23 Imposition of tax. (1) INCOME TAX. For the purpose of raising revenue for the state and the counties, cities, villages and towns, there shall be assessed, levied, collected and paid a tax as provided under this chapter on all Wisconsin net incomes of corporations that are n…
Wis. Stat. § 71.24 Filing returns; extensions; payment of tax
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71.24 Filing returns; extensions; payment of tax. (1) FILING RETURNS. Every corporation, except a corporation all of whose income is exempt from taxation and except as provided in sub. (1m), shall furnish to the department a true and accurate statement, on or before the date on w…
Wis. Stat. § 71.25 Situs of income; allocation and apportionment
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71.25 Situs of income; allocation and apportionment. For purposes of determining the situs of income under this section and s. 71.255 (5) (a) 1. and 2.: (1) BENEFICIARIES. The situs of income derived by any taxpayer as the beneficiary of the estate of a decedent or of a trust est…
Wis. Stat. § 71.255 Combined reporting
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71.255 Combined reporting. (1) DEFINITIONS. In this section: (a) “Combined group” means the group of all persons whose income and apportionment factors are required to be taken into account under sub. (2) to determine a member’s share of the net business income or loss apportiona…
Wis. Stat. § 71.26 Income computation
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71.26 (3): (a) Expenses, losses, and costs for, related to, or directly or indirectly in connection with the acquisition, use, maintenance, management, ownership, sale, exchange, or any other disposition of intangible property. (b) Losses related to, or incurred in connection dir…
Wis. Stat. § 71.265 Previously exempt corporations; basis and depreciation
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71.265 Previously exempt corporations; basis and depreciation. The Wisconsin adjusted basis of the property of any corporation that has, in any taxable year before it ceases to be exempt from tax under this chapter, taken depreciation or amortization of depreciable property for f…
Wis. Stat. § 71.27 Rates of taxation
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71.27 Rates of taxation. (1) The taxes to be assessed, levied and collected upon Wisconsin net incomes of corporations shall be computed at the rate of 7.9 percent. (2) The corporation franchise tax imposed under s. 71.23 (2) and measured by Wisconsin net income shall be computed…
Wis. Stat. § 71.275 Rate changes
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71.275 Rate changes. If a rate under s. 71.27 changes during a taxable year, the taxpayer shall compute the tax for that tax- May 22, 2026, are designated by NOTES. (Published 5-22-26) 71.275 INCOME AND FRANCHISE TAXES able year by the methods applicable to the federal income tax…
Wis. Stat. § 71.28 Credits
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71.28 (4) (b) to (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credits under this subsection. For taxable years beginning after December 31, 2017, if the allowable amount of the claim under par. (b) 4., 5., or 6. exceeds the tax otherwise due u…
Wis. Stat. § 71.29 Payments of estimated taxes
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71.29 Payments of estimated taxes. (1) DEFINITIONS. In this section: (a) “Return” means a return that would show the tax properly due. (b) “Tax shown on the return” and “tax for the taxable year” mean the net taxes imposed under s. 71.23 (1) or (2) after reduction for credits aga…
Wis. Stat. § 71.30 General provisions
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71.30 General provisions. (1) ACCOUNTING METHOD. (a) A corporation shall use a method of accounting authorized under the internal revenue code and shall use the same method used for federal income tax purposes if that method is authorized under the internal revenue code. (b) A co…
Wis. Stat. § 71.32 Conformity
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71.32 Conformity. Unless specifically provided in this subchapter, tax-option corporations shall be subject to all of the provisions, requirements and liabilities of this chapter, so far as applicable, unless the context requires otherwise. History: 1987 a. 312.
Wis. Stat. § 71.33 Intent
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71.33 Intent. It is the intent of this subchapter and other subchapters relating to the treatment of tax-option corporations and their shareholders to prevent the double inclusion or omission of any item of income, deduction or basis. History: 1987 a. 312. 71.34 Definitions. In t…
Wis. Stat. § 71.34 Definitions
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71.34 (1k) (j) and (k), 71.45 (2) (a) 16. and 17., and 71.80 (23). (1m) TRANSACTIONS WITHOUT ECONOMIC SUBSTANCE. (a) If any person, directly or indirectly, engages in a transaction or series of transactions without economic substance to create a loss or to reduce taxable income o…
Wis. Stat. § 71.35 Imposition of additional tax on tax-option corporations
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71.35 Imposition of additional tax on tax-option corporations. In addition to the other taxes imposed under this chapter, there is imposed on every tax-option corporation, except a corporation that qualifies for the exception under section 1374 (c) (1) of the internal revenue cod…
Wis. Stat. § 71.36 Tax-option items
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71.36 Tax-option items. (1) It is the intent of this section that shareholders of tax-option corporations include in their Wisconsin adjusted gross income their proportionate share of the corporation’s tax-option items unless the corporation elects under s. 71.365 (4) (a) not to …
Wis. Stat. § 71.362 Situs of income
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71.362 Situs of income. (1) All tax-option items of nonresident individuals, nonresident estates and nonresident trusts derived from a tax-option corporation not requiring apportionment under sub. (2) shall follow the situs of the business of the corporation from which they are d…
Wis. Stat. § 71.365 General provisions
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71.365 (4m) (a) to be taxed at the entity level. (e) Add or subtract, as appropriate, on sale, exchange, aban- May 22, 2026, are designated by NOTES. (Published 5-22-26) 21 Updated 23-24 Wis. Stats. donment or other disposition in a transaction in which gain or loss is recognized…
Wis. Stat. § 71.37 Conformity
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71.37 Conformity. Unless otherwise provided in this sub- INCOME AND FRANCHISE TAXES 71.40 chapter or the context requires otherwise, urban transit companies are subject to this chapter. History: 1987 a. 312.
Wis. Stat. § 71.38 Definition
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71.38 Definition. In this subchapter, “urban mass transportation of passengers” means the transportation of passengers by means of vehicles having a passenger-carrying capacity of 10 or more persons including the operator, such capacity to be determined by dividing by 20 the tota…
Wis. Stat. § 71.385 Determination of cost
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71.385 Determination of cost. The cost of property used and useful in providing urban mass transportation of passengers and the depreciation accrued on such property shall be determined on the basis of the reports and orders on file with the department of transportation. History:…
Wis. Stat. § 71.39 Imposition of tax
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71.39 Imposition of tax. (1) SPECIAL TAX; COMPUTATION. In lieu of the income and franchise tax rates prescribed in s. 71.27, there shall be assessed, levied and collected upon the taxable income of every corporation whose principal source (defined for purposes of this subchapter …
Wis. Stat. § 71.40 Filing of returns
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71.40 Filing of returns. The special income tax assessed under this subchapter shall be reported in an income or franchise tax return filed in accordance with this chapter, except as modified by this subchapter. The tax so reported and assessed shall be payable to the department …