Wisconsin consistently beats Minnesota on income tax across all income levels—saving a $100,000 earner roughly $1,556 per year in state income tax. Minnesota’s top rate of 9.85% is among the highest in the Midwest, while Wisconsin caps at 7.65%. However, Wisconsin’s property tax rate averages 1.61% compared to Minnesota’s 1.02%, which can erode those income tax savings for homeowners. Minnesota also levies an estate tax with a $3 million exemption—a significant consideration for high-net-worth residents—while Wisconsin has no estate tax. For most wage earners renting or owning modest homes, Wisconsin still comes out ahead.

By Daniel, Founder of CountryTaxCalc

Daniel has spent 5+ years researching tax systems across 95+ countries and all US states to make tax comparison accessible to everyone. For corrections, contact us.

Last Updated: April 2026

The Big Picture

🌲 Minnesota

9.85%

Top Rate (4 Brackets)

Progressive 5.35%–9.85% with estate tax and $3M exemption

🧀 Wisconsin

7.65%

Top Rate (4 Brackets)

Progressive 3.54%–7.65%; lower rates than Minnesota at every bracket

Typical Annual Savings

At $100,000 income:

$1,556

That is $130/month back in your pocket!

Tax Savings by Income Level

IncomeMN TaxWI TaxSavings10-Year
$50,000 $2,504$2,170$334$3,340
$75,000 $4,338$3,488$850$8,500
$100,000 $6,348$4,792$1,556$15,560
$150,000 $10,370$7,403$2,967$29,670
$250,000 $20,128$12,615$7,513$75,130
$500,000 $44,695$31,786$12,909$129,090
💡

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Minnesota Pros and Cons

✅ Pros

  • No estate tax on estates under $3 million
  • Lower property tax rate (~1.02%) than Wisconsin
  • Strong Minneapolis–Saint Paul economy and job market
  • Well-funded public schools and infrastructure

❌ Cons

  • Top income tax rate of 9.85% (one of the highest in the Midwest)
  • Estate tax applies to estates above $3 million
  • Both Social Security and retirement income taxed
  • High overall tax burden for high earners

Wisconsin Pros and Cons

✅ Pros

  • Lower income tax at every bracket (3.54%–7.65%)
  • No estate or inheritance tax
  • Saves $1,556+/year versus Minnesota at $100K income
  • Lower cost of living than Twin Cities metro

❌ Cons

  • High property tax rate (~1.61%) can erode income tax savings
  • Social Security benefits are taxable
  • Smaller major-city economy compared to Minneapolis–Saint Paul
  • Limited top-tier university presence outside Madison

Frequently Asked Questions

Q: How much less income tax does Wisconsin charge versus Minnesota?

At $100,000 income (single filer), Wisconsin’s income tax is approximately $4,792 versus Minnesota’s $6,348—a saving of $1,556 per year ($130/month). The gap widens sharply at higher incomes: at $250,000, Wisconsin saves you $7,513 annually, and at $500,000 the saving is roughly $12,909 per year.

Q: Does Minnesota have an estate tax?

Yes. Minnesota levies an estate tax on estates above $3 million, with rates from 13% to 16%. Wisconsin abolished its estate tax in 1992 and has none today. For residents with significant assets—including a family home, retirement accounts, and investment portfolio—this can be a major factor. A $4 million estate would owe roughly $130,000 in Minnesota estate tax; nothing in Wisconsin.

Q: Why is Wisconsin’s property tax higher than Minnesota’s?

Wisconsin relies more heavily on property tax to fund local government and schools, resulting in an average effective rate of about 1.61% compared to Minnesota’s 1.02%. On a $400,000 home that’s $2,360 more per year in Wisconsin. Homeowners should factor this into the income tax comparison: a Wisconsin homeowner with a $400K home recoups only about half of their income tax savings through property tax costs alone.

Q: Do both states tax Social Security income?

Yes—both Minnesota and Wisconsin tax Social Security benefits for higher-income residents. Minnesota offers a partial Social Security subtraction for lower-income earners (under ~$105,000 AGI for married filers). Wisconsin uses the federal taxable Social Security amount as the starting point. Neither state is as Social Security-friendly as states like Florida or Tennessee that have no income tax at all.

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