The Racine County sales tax rate is 5.5%. That total combines Wisconsin’s 5% state sales tax with a 0.5% county sales and use tax that took effect April 1, 2025.1Wisconsin Department of Revenue. DOR County and City Sales and Use Taxes It applies to most retail purchases in the county, from clothing and electronics to downloaded music and a specific list of services.
How the 5.5% Rate Is Built
Wisconsin imposes a 5% sales tax on retail sales statewide.2Wisconsin Department of Revenue. Tax Rates Racine County layers on a 0.5% county sales and use tax adopted under Wis. Stat. § 77.70.3Wisconsin State Legislature. Wisconsin Code 77.70 – Adoption by County Ordinance Every taxable dollar you spend in the county therefore carries 5.5 cents in tax.
Wisconsin law requires that the county’s 0.5% be used exclusively to reduce Racine County’s property tax levy.3Wisconsin State Legislature. Wisconsin Code 77.70 – Adoption by County Ordinance The county collects the sales tax and, in return, property owners should see a lower property tax bill than they otherwise would.
What Racine County Taxes
The 5.5% rate applies to the sale, lease, or rental of tangible personal property at retail. Furniture, appliances, clothing, vehicles, and coins or stamps sold above face value all fall inside that definition.4Wisconsin State Legislature. Wisconsin Code 77.52 – Imposition of Retail Sales Tax
Digital Goods
Digital audio works like music and audiobooks, digital audiovisual works like movies and TV shows, and digital books are all taxed at the same 5.5% combined rate.5Wisconsin Department of Revenue. Publication 240 – Digital Goods It doesn’t matter whether you download the file or stream it, and it doesn’t matter whether you buy permanent access or a temporary subscription. Prewritten computer software accessed online is taxable on the same terms.4Wisconsin State Legislature. Wisconsin Code 77.52 – Imposition of Retail Sales Tax
Taxable Services
Most services in Wisconsin are not taxed. A specific list under Wis. Stat. § 77.52(2)(a) is, and those services carry the full 5.5% rate in Racine County:4Wisconsin State Legislature. Wisconsin Code 77.52 – Imposition of Retail Sales Tax
- Hotel and motel rooms rented to short-term guests
- Admissions to amusement parks, concerts, sporting events, and recreational facilities, though county fairs are excluded
- Prepaid calling services, intrastate and interstate phone service, and ancillary telecommunications services
- Professional laundry and dry cleaning (self-service laundromats are exempt)
- Photo sessions, film processing, and printing
- Paid parking for vehicles and aircraft, plus boat storage and docking
- Motor vehicle towing by a tow truck
Services not on the statutory list, such as haircuts, legal fees, and accounting, are generally not taxed.
What’s Exempt
Groceries
Food and food ingredients bought for home preparation are exempt from both the state and county tax.6Wisconsin State Legislature. Wisconsin Code 77-54 – General Exemptions The exemption does not cover candy, soft drinks, dietary supplements, or prepared food. Prepared food generally means food sold heated, food where the seller has mixed or combined ingredients, or food sold with eating utensils provided by the seller. A bag of rice from the grocery store is exempt; a hot meal from a restaurant is taxable at the full 5.5%. Convenience stores and delis that sell both types are where this line gets confusing.
Prescription Drugs and Medical Equipment
Drugs prescribed for a human patient and dispensed by a pharmacist are fully exempt, along with insulin furnished for diabetes treatment. Drugs furnished directly by a physician, surgeon, podiatrist, or dentist during treatment are also exempt. Durable medical equipment used in a person’s home, mobility-enhancing equipment, and prosthetic devices are tax-free as well.6Wisconsin State Legislature. Wisconsin Code 77-54 – General Exemptions Over-the-counter medications that do not require a prescription are taxable.
Farming and Energy Equipment
Machinery and equipment used directly in farming are exempt under § 77.54(3)(a). Fuel and electricity used in manufacturing qualify for their own exemption, and equipment used to produce electricity from wind or solar energy has a separate exemption category. These are narrow. A business claiming one should confirm that its specific purchases qualify rather than assume all farm or energy-related equipment is covered.
Use Tax on Out-of-State Purchases
If you buy something online, from a catalog, or while traveling out of state and the seller doesn’t charge Wisconsin sales tax, you owe a matching use tax at the same 5.5% combined rate when you bring the item into Racine County.7Wisconsin Department of Revenue. DOR Sales and Use Tax Individuals typically report use tax on their annual Wisconsin income tax return. Businesses with a seller’s permit report it on their regular sales tax returns.
Most large online retailers now collect Wisconsin sales tax automatically because of the marketplace and remote seller rules described below, so use tax comes up less often than it once did. Purchases from small out-of-state vendors and private sales still create the obligation.
Rules for Remote Sellers and Marketplaces
Out-of-state businesses must collect and remit the 5.5% Racine County rate on shipments delivered to county addresses once their sales into Wisconsin exceed $100,000 in either the current or previous calendar year. Wisconsin eliminated a separate 200-transaction threshold in 2021, so only the dollar figure matters now.8Wisconsin Department of Revenue. DOR Remote Sellers Common Questions
Selling through a marketplace like Amazon, eBay, or Etsy is different. Wisconsin law requires marketplace providers to collect and remit sales tax on all taxable sales they facilitate on behalf of third-party sellers.9Wisconsin Department of Revenue. DOR Marketplace Provider Common Questions The platform, not the individual seller, is responsible for charging the correct rate and remitting the money. Sellers who only sell through qualifying marketplaces may not need their own Wisconsin seller’s permit; anyone also selling through their own website or storefront still does.
Getting a Seller’s Permit
Any business making taxable retail sales in Wisconsin needs a seller’s permit before its first sale. The fastest route is online through the Department of Revenue’s Business Tax Registration portal at tap.revenue.wi.gov/btr, which typically issues an account number the same day.10Wisconsin Department of Revenue. DOR Business Tax Registration A paper Form BTR-101 can be submitted at any DOR office instead.11Wisconsin Department of Revenue. BTR-101 Application for Wisconsin Business Tax Registration
The registration fee is $20 regardless of how many locations you operate, and it covers seller’s permits, use tax certificates, and excise tax permits.10Wisconsin Department of Revenue. DOR Business Tax Registration You’ll need a Social Security Number (for sole proprietors) or Federal Employer Identification Number, your legal business name and physical address, and a description of your business activities.11Wisconsin Department of Revenue. BTR-101 Application for Wisconsin Business Tax Registration
Filing Frequency and Deadlines
The Department of Revenue assigns each permit holder a filing frequency based on how much tax they collect:12Wisconsin Department of Revenue. Annual Filing Frequency Scan
- Annual: $600 or less per year in tax
- Quarterly: $601 to $1,200 per quarter
- Monthly: $1,201 to $3,600 per quarter
- Early monthly: $3,601 or more per quarter
Returns are filed through the My Tax Account portal. Most filers submit by the last day of the month following the reporting period. Early monthly filers face a tighter deadline of the 20th of the following month. When a due date falls on a weekend or holiday, it moves to the next business day.7Wisconsin Department of Revenue. DOR Sales and Use Tax
One rule catches new business owners off guard. You must file a return for every reporting period even if you made no sales and collected no tax. A zero-dollar return is still required, and skipping a period creates a delinquency that can trigger penalties.7Wisconsin Department of Revenue. DOR Sales and Use Tax
Penalties for Late Filing or Nonpayment
Late filing adds 5% of the tax due for each month or partial month the return is overdue, up to a maximum of 25%. Delinquent taxes also accrue interest at 1.5% per month, or 18% per year.13Wisconsin State Legislature. Wisconsin Code 77.60(4) – Interest and Penalties Unpaid taxes that have not yet become delinquent still accrue interest at 12% per year from the return’s due date.
The stakes rise sharply if the Department of Revenue finds you deliberately evaded the tax. Filing a fraudulent return or intentionally failing to file triggers a flat 50% penalty on the tax owed, separate from interest and other penalties.13Wisconsin State Legislature. Wisconsin Code 77.60(4) – Interest and Penalties
Sales tax collected from customers is treated as trust fund money held on behalf of the state. A business owner, officer, or other person responsible for remitting those funds can be held personally liable if the tax is collected but never sent to the state. That personal exposure survives even if the business closes or files for bankruptcy.
No Sales Tax Holiday in Wisconsin
Wisconsin does not hold a sales tax holiday. There is no tax-free weekend for back-to-school shopping, severe weather supplies, or any other category. The 5.5% Racine County rate applies year-round under current Wisconsin law.