Wisconsin Sales Tax Exemptions / Tax Free Items Wisconsin: Sales Tax Handbook

Wisconsin:

What purchases are exempt from the Wisconsin sales tax?

While the Wisconsin sales tax of 5.00% applies to most transactions, there are certain items that may be exempt from taxation. This page discusses various sales tax exemptions in Wisconsin.

Sales Tax Exemptions in Wisconsin

In Wisconsin, certain items may be exempt from the sales tax to all consumers, not just tax-exempt purchasers.

There are many exemptions to state sales tax. This includes, burial caskets, certain agricultural items, certain grocery items, prescription medicine and medical devices, modular or manufactured homes, and certain pieces of manufacturing equipment.

Many states have special, lowered sales tax rates for certain types of staple goods - such as groceries, clothing and medicines. Restaurant meals may also have a special sales tax rate. Here are the special category rates for Wisconsin:


Clothing

  5.%

Groceries

  EXEMPT

Prepared Food

  5.%

Prescription Drugs

  EXEMPT

OTC Drugs

  5.%

These categories may have some further qualifications before the special rate applies, such as a price cap on clothing items. Groceries are generally defined as "unprepared food", while pre-prepared food may be subject to the restaurant food tax rate.

Candy and soda may be included or excluded from any preferential tax rate depending on whether or not the state considers them to be a "grocery":


Is candy taxable in Wisconsin? Candy is NOT considered a grocery in Wisconsin
Is soda taxable in Wisconsin? Soda is NOT considered a grocery in Wisconsin

Are services, shipping, installation, etc taxable in Wisconsin?

The taxability of transactions involving services, shipping, and installation of tangible goods can be slightly complicated with various laws applying to slightly different situations. To learn more about how these transactions, and other more complicated situations, are subject to the Wisconsin sales tax see the Wisconsin sales taxability FAQ page.


Other tax-exempt items in Wisconsin

This table lists a number of additional categories of goods and services that are exempt from Wisconsin's sales tax. For a list that also shows taxable items, see the list of taxable and nontaxable items in Wisconsin.

Category Exemption Status
Food and Meals
Grocery Food EXEMPT *
Manufacturing and Machinery
Machinery EXEMPT
Raw Materials EXEMPT
Utilities & Fuel EXEMPT
Medical Goods and Services
Medical Devices EXEMPT
Medical Services EXEMPT
Newspapers and Magazines
Newspapers EXEMPT
Periodicals EXEMPT *
Occasional Sales
General Occasional Sales EXEMPT *
Optional Maintenance Contracts
Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts EXEMPT
Services
Janitorial Services EXEMPT *
Transportation Services EXEMPT
Software and Digital Products
Custom Software - Delivered on Tangible Media EXEMPT *
Custom Software - Downloaded EXEMPT *
Trade-Ins
General Trade-Ins EXEMPT *
Vending Machine Sales
Food EXEMPT *

* See notes in category taxability page for details



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Source: http://www.salestaxhandbook.com/wisconsin/sales-tax-exemptions