Does Wisconsin charge sales tax on services?
by April 11, 2023
The majority of U.S. states require merchants to charge sales tax on tangible personal property (TPP), otherwise known as physical goods. Many states also implement sales and use tax on digital goods and SaaS. Because the economy has shifted over time from a manufacturing economy to a service economy, states are now looking to generate revenue by taxing services.
Here’s what merchants need to know about which services are taxable in the state of Wisconsin, which has a state sales tax rate of 5%.
Does Wisconsin charge sales tax on services?
Certain services are taxable in Wisconsin:
- Admission and access privileges to amusement, athletic, entertainment, or recreational places or events
- Access or use of amusement devices (including coin-operated vending machines)
- Boat docking and storage (including vessels and barges)
- Cable television services (including installation charges)
- Contracts for future performances of services (including service contracts, maintenance agreements, computer software maintenance contracts for prewritten computer software, and warranties)
- Landscaping and lawn maintenance services
- Laundry, dry cleaners, and linen and clothing suppliers
- Parking services for motor vehicles and aircraft
- Commercial photographers and photographic services
- Fabricating, processing and printing
- Repair and service of tangible personal property, items, property, or goods (the original installation or the complete replacement of certain items listed in section 9 on page 45 of Publication 201 continue to be nontaxable if such installation or replacement is a real property construction activity)
- Rooms or lodging for less than one month
- Telecommunications message services
- Telecommunications services, including:
- intrastate, interstate and international telecommunications services
- private communication services
- 800 and 900 services
- fixed and mobile wireless services
- stationary two-way radio and paging services
- facsimile transmission services
- prepaid wireless calling services
- value-added non-voice data services
- residential communications services
- coin-operated telephone services
- other ancillary services (including conference bridging, directory assistance, call forwarding, voice mail, caller ID and call waiting services)
- Towing and hauling of motor vehicles by a tow truck
Please keep in mind that this is a guideline, and you should consult with a sales tax professional to determine if the services your business provides should be subject to state sales tax. For an in-depth look at Wisconsin sales tax, TaxJar’s guide to sales tax in Wisconsin and the Wisconsin Department of Revenue has more details.
How to stay compliant with sales tax when you sell services
Managing all the moving parts of sales tax can be challenging. Are accounting services taxed? What about hair care or car maintenance? They may not be taxed in your state today, but sales tax laws change all the time. TaxJar makes it easier for you to stay current with it all, especially as you scale your business across states.
If you need to charge sales tax on services, TaxJar takes all of these state laws into account and makes your job simple. To learn more about TaxJar and get started automating your sales tax compliance, start a free, 30-day trial today.
