Wisconsin Mileage Deduction 2026: 3.50% to 7.65%

Wisconsin's individual income tax runs from 3.50% at the bottom to 7.65% at the top. A self-employed driver at 13,000 business miles deducts $9,880 and keeps roughly $4,441, about $756 of it Wisconsin tax. The whole amount depends on a mileage log that records each trip when it happens.

Source: Wisconsin Department of Revenue, listing individual income tax rates from 3.50% to 7.65%. Verified August 2026.

The middle brackets are where most drivers sit

Wisconsin's top rate applies at income levels most full-time self-employed drivers do not reach. The realistic planning rate for a rideshare, delivery, or trades driver is one of the middle brackets, which is why quoting the 7.65% headline overstates the state benefit for a typical filer. Compute against the bracket your net profit actually lands in after the deduction, not before it.

That ordering matters more than it sounds. The mileage deduction is large enough that it frequently moves a driver down a bracket, meaning the rate you use to value the deduction is partly determined by the deduction itself.

Wisconsin's manufacturing and agriculture credit

Wisconsin offers a credit for qualifying manufacturing and agricultural income that can reduce the effective state rate on that income to near zero. Drivers with farm-related self-employment income should check whether their business qualifies before assuming the standard bracket rate applies to their mileage benefit. Where the credit applies, the state value of a deduction against that income is much smaller than the headline rate implies.

Filing in Wisconsin

Claim the miles on federal Schedule C, Line 9 at 76¢ (the rate from 1 July 2026; 72.5¢ before that) per business mile. Wisconsin Form 1 begins from federal adjusted gross income, so the deduction carries through without a separate state line. Wisconsin has no local income taxes on wages or self-employment income.

FAQ

Is Wisconsin's top rate going to 9.80%?

No. A 9.80% figure appears in a Legislative Reference Bureau budget paper, which is an analysis document rather than enacted law. The statutory top rate is 7.65%.

Which bracket should I use to estimate my savings?

The one your taxable income falls in after the mileage deduction is applied. Estimating from pre-deduction income overstates the benefit for anyone near a threshold.

Does Wisconsin require mileage reimbursement?

No. Wisconsin has no statute requiring private employers to reimburse business mileage.

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