2025 Tax Year

Wisconsin Side Hustle Tax Calculator

Calculate your Wisconsin state tax (5.30%), federal tax, and self-employment tax on 1099 income.

WI5.30%

5.9 million residents

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2025 rates

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Last updated: January 2026 · Data from IRS Rev Proc 2024-40

Filing Status

State

W-2 Income (from your day job)

Side Hustle Income *

Business Expenses (optional)

Wisconsin side hustlers navigate a progressive state income tax system with rates ranging from 3.54% to 7.65%. However, most freelancers earning typical side hustle income will pay around 5.30% on their marginal earnings. The Badger State has a growing gig economy centered around Milwaukee, Madison, and the Green Bay area, with over 500,000 residents earning freelance or self-employment income.

Wisconsin Tax Guide

How Side Hustle Taxes Work in Wisconsin

Wisconsin uses a progressive income tax system with four brackets:

**Wisconsin state tax rates (2025):** - 3.54% on income up to $14,320 (single) - 4.55% on $14,321 - $28,640 - 5.30% on $28,641 - $315,310 - 7.65% on income over $315,310

**No local income taxes:** - Milwaukee, Madison, and all Wisconsin cities do not levy local income taxes - You only pay the state progressive rate plus federal taxes

Most side hustlers with W-2 jobs will fall into the 5.30% bracket for their additional freelance income.

Example

What Wisconsin Side Hustlers Owe

Let's say you're a single filer in Milwaukee with a $50,000 W-2 job and $15,000 in side hustle income from freelance marketing, with $2,000 in business expenses.

**Your estimated taxes on the side hustle:** - Net self-employment income: $13,000 - Federal SE tax (15.3% of 92.35%): ~$1,839 - Federal income tax on side income: ~$2,860 (22% bracket) - Wisconsin state tax (5.30%): ~$689 - **Total additional tax: ~$5,388**

Your effective rate on the side hustle is approximately 41%.

Important Dates

Wisconsin Tax Deadlines 2025

Wisconsin estimated tax deadlines: - **Q1**: April 15, 2025 - **Q2**: June 16, 2025 - **Q3**: September 15, 2025 - **Q4**: January 15, 2026

Use Wisconsin Form 1-ES for state estimated tax payments.

Save Money

Common Deductions for Wisconsin Freelancers

Wisconsin freelancers benefit from the state's conformity to federal deduction rules. **Home office expenses**: Claim dedicated business space using simplified ($5/sq ft) or actual expense method. **Business mileage**: 67 cents/mile for 2025; essential for rideshare drivers and those traveling to client sites in Milwaukee, Madison, or Green Bay. **Equipment and software**: Computers, cameras, tools, and business software; Wisconsin follows federal Section 179 treatment. **Professional development**: Courses, certifications, conferences, and educational materials that improve your business skills qualify. **Health insurance premiums**: Self-employed individuals can deduct 100% of health, dental, and vision insurance. **Retirement contributions**: SEP-IRAs (up to 25% of net self-employment income) and Solo 401(k)s reduce both federal and Wisconsin taxable income. **Marketing expenses**: Website costs, business cards, and promotional materials are deductible. Wisconsin's progressive rates mean deductions are especially valuable if you're in the 5.30% bracket (income $28,641-$315,310)—every dollar deducted saves you 5.30% in WI taxes plus your federal rate. Wisconsin generally follows federal AGI calculations, making tax planning straightforward.

Common Questions

Wisconsin Side Hustle Tax FAQ

What is Wisconsin's tax rate on side hustle income?

Wisconsin has progressive rates from 3.54% to 7.65%. Most side hustlers with total income between $28,641 and $315,310 pay 5.30% on their marginal freelance earnings.

Does Milwaukee have a city income tax?

No, Milwaukee and all Wisconsin cities do not have local income taxes. You only pay state-level income tax on your side hustle earnings.

How do I report side hustle income in Wisconsin?

Report your side hustle income on federal Schedule C. Wisconsin uses your federal adjusted gross income as the starting point for Form 1.

Do I need to register my side hustle in Wisconsin?

Sole proprietors using their legal name don't need state registration. If using a trade name (DBA), register with the Wisconsin Department of Financial Institutions. LLCs must also register with DFI. Sellers may need a Seller's Permit from the Department of Revenue.

When are Wisconsin quarterly estimated taxes due?

Wisconsin follows federal quarterly deadlines: April 15, June 16, September 15, and January 15. Use Form 1-ES for payments. Estimated payments are required if you expect to owe $500 or more.

Can I deduct retirement contributions on Wisconsin taxes?

Yes, SEP-IRA and Solo 401(k) contributions reduce your federal AGI, which Wisconsin uses as its starting point. This could move you into a lower bracket and save significant money given Wisconsin's progressive rates.

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