MILWAUKEE - The Wisconsin State Department of Revenue (DOR) wants consumers and retailers to make sure the new Milwaukee sales taxes are charged correctly.
Beginning Jan. 1, 2024, a new city of Milwaukee sales and use tax (2%) and an increase in the sales and use tax for Milwaukee County (from .5% to .9%) went into effect.
The combined state, county and city sales and use tax rate in the city of Milwaukee is now 7.9%, and the rest of Milwaukee County is now 5.9%.
Milwaukee city, county sales tax increase; what to expect in 2024
Milwaukee's new city sales tax and Milwaukee County's sales tax increase take effect Jan. 1, 2024. Here is what shoppers can prepare for and expect.
According to the DOR, some retailers are charging the new 2% sales and use tax on sales occurring outside the city of Milwaukee. There have been reports of this in the city of Glendale, for example.
There is some confusion surrounding postal delivery addresses versus city boundaries. For example, 5-digit zip codes used by the postal service often cover multiple cities.
Retailers are responsible for determining the correct sales and use tax on each transaction.
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Retailers may use the Wisconsin State and Local Sales Tax Rate Lookup Tool to determine the tax rate applicable to a specific street address or 9-digit zip code.
Alternatively, retailers and software programmers may use the Wisconsin rate and boundary database files to program into their software to determine the proper tax rate applicable to a specific street address or 9-digit zip code.
A five-digit zip code without a street address is insufficient to determine if a transaction takes place in the city of Milwaukee because 5-digit zip codes often cover jurisdictions both within and outside the city of Milwaukee (e.g., the 53209 zip code covers the cities of Glendale, Brown Deer, and Milwaukee).
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However, the street address and 5-digit zip code, or just the 9-digit zip code, can be entered into the lookup tool to arrive at the correct jurisdiction and tax rate.
Consumers are encouraged to notify DOR of retailers charging an incorrect amount of tax. Consumers should request refunds directly from the retailer. If the amount of tax overpaid is $50 or more, consumers may request refunds directly from the department.
Click here for more information about the new sales tax and what to do if incorrect sales taxes are collected.