Taxation

 

Corporate Income Tax/Franchise Tax

Minnesota

Local

    Wisconsin

Local

 Rate Range

9.8%

N/A

    7.9%

N/A

 Formula (e.g. Sales, Property & Payroll)

Additional minimum tax ranging from $0 to $9,650 depending on in-state property, payroll, and sales or receipts. Apportionment: 100% sales

N/A

    Plus an economic development surcharge equal to 3%  for corporations with at least $4 million in gross receipts (minimum surcharge $25; maximum $9,800) Apportionment: 100% sales

N/A

 Federal Taxes Deductible

No

N/A

    N/A

N/A

 Accelerated Depreciation Permitted

Yes (Limited Bonus Depreciation)

N/A

    N/A

N/A

Personal Income Tax

Minnesota

Local

    Wisconsin

Local

 Rate Range

5.35% - 9.85%

N/A

    4.00% - 7.75%

N/A

 Earned Income

Yes

N/A

    N/A

N/A

 Unearned Income (e.g. Dividend)

Yes

N/A

    N/A

N/A

Local Occupation Tax (Paid by Employee)

Rate (Minnesota)

Basis

    Rate (Wisconsin)

Basis

 City Residents

N/A

N/A

    N/A

N/A

 Non-City Residents

N/A

N/A

    N/A

N/A

Local Wage Tax (Paid by Employer)

Rate (Minnesota)

Basis

    Rate (Wisconsin)

Basis

 City Residents

N/A

N/A

    N/A

N/A

 Non-City Residents

N/A

N/A

    N/A

N/A

Sales/Use Tax Rate

Minnesota

 

    Wisconsin

 

 State

6.875%

 

    5.0%

 

 Local

1.0% (Duluth), 1.5% (Hermantown) 1.5% (Proctor), 0.5% (Cloquet), 0.5% (Two Harbors), 0.5% (Carlton County), 1.0% (Cook County), 0.5% (St. Louis County)

 

    0.5% (Douglas County)

 

Sales Tax Rate by Utility

Minnesota

 

    Wisconsin

 

 Electric Power

6.875%, exempt if used in production

 

    5.0%, exempt if used in production

 

 Natural Gas

6.875%, exempt if used in production

 

    5.0%, exempt if used in production

 

 Fuel Oil

6.875%

 

    5.0%, exempt if used in production

 

 Water

6.875%

 

    5.0%

 

 Sewer

N/A

 

    5.0%

 

 Wireless Telephone

9.42%

 

    7.1%

 

 Hazardous Waste Disposal

Water Treat Plant - Solids .015, Liquid .15 Landfill - Solids .03, Liquid .30

 

    Disposal services are generally not taxable.

 

Machinery & Equipment Subject to Sales/Use Tax

Minnesota

 

    Wisconsin

 

 Production

6.875% Rebated

 

    No

 

 Non-Production

Yes

 

    Yes

 

 Pollution Control

If > 100 pounds

 

    No

 

 Office Furniture/Fixtures/Equipment

Yes

 

    Yes

 

 Office Building Construction Materials

Yes

 

    Yes

 

 Industrial Building Construction Materials

No

 

    No

 

 Manufacturer's Raw Materials

No

 

    No

 

 Standard Software

Yes

 

    Yes

 

 Custom Software

No

 

    No

 

Miscellaneous

       

 Giants Ridge Recreation Area

2% Admissions and Recreation Tax; 1% Food and Beverage Tax; 2% Lodging Tax

 

 

 

Proctor

1% Food and Beverage Tax

 

 

 

 
Source: Minnesota and Wisconsin Departments of Revenue

Please note that all personal property taxes are exempt in both Minnesota and Wisconsin.