Report Estimates Wisconsin Tip and Overtime Tax Exemption Could Cost $2.7 Billion
A new report by Forward Analytics estimates that eliminating state income tax on tips and overtime in Wisconsin could cost the state $2.7 billion in revenue over the next decade, while providing an equal savings to workers. Both major party…
Green Bay Appleton, WI, October 23, 2026 —
A new report by Forward Analytics estimates that eliminating Wisconsin state income tax on tips and overtime could reduce state revenue by $2.7 billion over the next decade. The report also estimates workers would receive an equal amount in savings.
Both major party candidates for governor have expressed support for the policy, according to the information provided about the report. Their names, the details of their proposals and any differences between their positions were not provided.
The estimate concerns state income taxes on two types of earnings: tips and overtime. The information available does not specify how the policy would be designed, who would qualify, when it might take effect or whether the candidates have proposed legislation.
Details about Forward Analytics’ methodology, the assumptions behind the projection and how the estimated savings would be distributed among workers were not provided. The report’s release date was also not specified. Those details would help explain how the decade-long revenue estimate was calculated and what it means for different workers.
The estimate describes a potential revenue reduction and an equal amount in projected worker savings. It does not, in the information provided, identify other potential fiscal effects or explain how the state might address the revenue change. No specific timeline for action or legislative status was given.
Story summarized from the original created by Joe Schulz on www.wpr.org, see more information here.
