Wisconsin brokerage account growth calculator

What a taxable index-fund account is actually worth after expense-ratio drag and after Wisconsin takes its share of the gain — which, in most states, is not at the federal preferential rate.

Wisconsin taxes your gains as ordinary income

There is no state equivalent of the federal preferential rate here — a long-term gain is charged at Wisconsin's normal income brackets, exactly like wages. This is the common case, and it surprises people who assume the federal 15% carries over. WISCONSIN'S EXCLUSION IS REAL AND BROAD -- unlike Vermont's, it is not carved back for publicly traded securities. A deduction for 30% of the net capital gain from assets held MORE THAN ONE YEAR is allowable in computing Wisconsin taxable income, rising to 60% of net capital gain from FARM ASSETS held more than one year. The remaining 70% is taxed at the ordinary graduated schedule, so a top-bracket Wisconsin filer's effective rate on a long-term gain is roughly 5.36% (70% x 7.65%) rather than 7.65%. Note the holding period carefully: it is more than ONE year, matching the federal long-term definition, not the three-year period Vermont uses. Short-term gains get no exclusion and are taxed in full. Because Wisconsin begins from federal adjusted gross income and the deduction is a Wisconsin-only adjustment, a filer's Wisconsin capital gain can diverge from the federal figure in both the year of realization and in carryover years, which is why Wisconsin requires reconciling adjustments on Schedule WD, Schedule AD, or Schedule SB. Wisconsin has also adopted the federal qualified small business stock changes made by Public Law 119-21, which expand the percentage of QSBS gain excludable, the per-issuer gain cap, and the maximum asset size of a qualifying small business.