Wisconsin tax collections surge by over 8% in February

In February 2025, Wisconsin experienced a significant increase in tax collections, marking an 8% rise compared to the previous year. The state collected over $1 billion in general purpose taxes, driven largely by a notable increase in individual income tax collections, which saw an impressive 23% increase from $327 million the previous year to $403 million. This record in the state’s individual income tax is attributed to the health of the local economy and possibly increases in wages. In addition to income taxes, sales and use taxes in Wisconsin increased by 3.8%, bringing in $560 million in February, up from $540 million in 2024. The overall sales tax collections for the fiscal year reached approximately $4.6 billion, a slight increase from nearly $4.5 billion in the previous fiscal year. These trends indicate a slowly growing economy and increased consumer spending within the state, reflecting positive economic signs. However, it isn't all positive for every tax sector. Corporate income tax collections fell sharply by nearly 75% in February; however, they remain slightly up by 2.5% for the fiscal year overall, suggesting some volatility within corporate earnings. Meanwhile, excise taxes also faced a downturn, decreasing by over 6% in February compared to the previous year and showing a decline of 4.4% for the entire fiscal year. The overall tax revenue growth can be a positive indicator for state budgeting, possibly allowing for increased spending on public services. Nevertheless, the sharp drop in corporate taxes raises questions about business profitability in the state. Economic analysts will be watching closely to see how these trends unfold in the coming months as Wisconsin moves forward with its fiscal policies and economic strategies.