Wisconsin Mileage Deduction 2026

Wisconsin's top income tax rate is 7.65%. At 15,000 business miles and a 6.5% effective rate, you save roughly $707 in state taxes on top of about $4,056 in federal income and self-employment tax savings. That is about $4,763 back for keeping a mileage log. Wisconsin has no local income taxes, so the state rate plus federal is the full picture, and the high state rate makes every tracked mile worth meaningfully more than in most states.

Wisconsin uses a sliding-scale standard deduction that phases to $0 as income rises. A self-employed person earning $75,000 or more gets no standard deduction at all. This effectively raises the marginal rate for middle-income earners and makes above-the-line deductions like your mileage deduction even more valuable, since they reduce your AGI before the standard deduction phase-out kicks in.

How to File

Deduct your business miles on federal Schedule C, Line 9 at 72.5¢/mile. Wisconsin starts with your federal adjusted gross income, so the mileage deduction flows through to your state return automatically. Keep a mileage log with the date, destination, purpose, and miles for each trip. If you expect to owe more than $500 in state taxes, make quarterly estimated payments.

The state does not require employers to reimburse mileage. If you drive for work, tracking is the only way to get the money back.

FAQ

Does Wisconsin require mileage reimbursement?

No. Wisconsin has no state law requiring private employers to reimburse mileage.

Does my mileage deduction reduce Wisconsin state taxes?

Yes. Wisconsin uses your federal adjusted gross income as the starting point. Your Schedule C mileage deduction reduces that number, which directly reduces your state tax.

Can W-2 employees deduct mileage in Wisconsin?

No. The mileage deduction for W-2 employees was permanently eliminated under the One Big Beautiful Bill. If your employer does not reimburse, you have no tax remedy.

Track every business mile. Start free with TruMile →