What Is the Milwaukee County, Wisconsin Sales Tax Rate?

The Milwaukee County sales tax rate is 5.9% for purchases made anywhere in the county, and 7.9% for purchases made within the City of Milwaukee limits. The county figure combines Wisconsin’s 5% state tax with a 0.9% county tax. Inside city limits, an additional 2% city tax pushes the total to 7.9%.¹

What Makes Up the Rate

Three separate taxes stack for a purchase inside the City of Milwaukee:

Wisconsin state sales tax of 5%, which applies to taxable sales statewide.²
Milwaukee County tax of 0.9%, made up of a longstanding 0.5% county tax that has been in place since 1991 plus an additional 0.4% authorized under 2023 Wisconsin Act 12.³
City of Milwaukee tax of 2%, which applies only to transactions inside city limits and was also authorized by Act 12.¹

Shopping in a Milwaukee County suburb such as Wauwatosa, West Allis, or Greenfield means paying 5.9%. Cross the line into the City of Milwaukee and the same purchase costs 7.9%. The exact location of the transaction decides which rate applies.

Why the Rate Jumped in 2024

Before 2024, the combined rate in Milwaukee County was 5.5%, just the state tax plus the 0.5% county tax. The new 0.4% county piece and the 2% city piece both took effect January 1, 2024, under 2023 Wisconsin Act 12. The law was primarily a pension reform bill, and both increases came with strings attached.

Milwaukee County had to enroll all new employees in the Wisconsin Retirement System and start making annual payments toward its pension system’s unfunded liability. The additional 0.4% county tax must be repealed once the county’s retirement system is fully funded or by December 31, 2050, whichever comes first.³ The original 0.5% county tax is not affected by the sunset and continues on its own.

The City of Milwaukee faced similar conditions: a two-thirds Common Council vote, state retirement system enrollment for new employees, and annual pension contributions. The city’s 2% tax must be repealed once its retirement system is fully funded or after 30 years (roughly 2054), whichever is earlier.⁴ So while the law calls these increases temporary, most shoppers should plan on paying them for years.

What the Rate Applies To

Wisconsin’s sales tax reaches most retail purchases. Physical goods are taxable across the board: electronics, furniture, vehicles, and clothing. Wisconsin does not exempt apparel, so a shirt bought in Milwaukee County carries the full combined rate.⁵ Digital goods such as downloaded music, e-books, and software are taxable as well.⁶

Several services get taxed too. Hotel and lodging stays, telecommunications, laundry, parking, and admissions to amusement or entertainment events all carry sales tax, along with landscaping, photography, and various repair services.⁶

Groceries, Prescriptions, and Other Exemptions

The biggest exemption for everyday shoppers is food for home consumption. Groceries are not taxed in Wisconsin. The exemption does not cover candy, soft drinks, dietary supplements, or prepared food.⁷ The grocery-versus-prepared-food line matters at checkout: a frozen pizza from the grocery aisle is exempt, but a slice from the deli counter is taxable. If the seller heats the item, combines ingredients to order, or hands you utensils, it is generally treated as prepared food.

Prescription medications dispensed by a pharmacist are fully exempt, as is insulin for diabetes treatment. Drugs provided directly by a physician, surgeon, or dentist for patient treatment also qualify. Over-the-counter medications stay taxable. Durable medical equipment used in the home, prosthetic devices, mobility-enhancing equipment, and their accessories are exempt.⁷

Online and Out-of-State Purchases

Buying from a seller that does not collect Wisconsin tax does not get you out of paying. Wisconsin’s use tax applies at the same combined rate as the sales tax: 5.9% in Milwaukee County, or 7.9% inside the City of Milwaukee.⁸ The sales tax exemptions carry over, so exempt groceries and prescriptions stay exempt whether you buy them locally or ship them in.

Since the Wayfair decision and Wisconsin’s marketplace facilitator law, most large online retailers now collect the tax automatically. Marketplaces such as Amazon, eBay, and Etsy have been required to collect and remit Wisconsin sales tax on third-party sales since January 1, 2020.⁹ If you buy from a smaller out-of-state seller that does not collect, the obligation falls on you. Individuals report any use tax owed on their Wisconsin income tax return (Form 1 or 1NPR) on the line for sales and use tax due on out-of-state purchases.¹⁰

1
Wisconsin Department of Revenue. City of Milwaukee Sales and Use Taxes
2
Wisconsin Department of Revenue. Tax Rates
3
Wisconsin State Legislature. Wisconsin Code 77.70 – Adoption by County Ordinance
4
Wisconsin State Legislature. Milwaukee City and County Sales Taxes and Pension Reforms – Informational Paper 19
5
Wisconsin Department of Revenue. What Is Taxable
6
Wisconsin State Legislature. Wisconsin Code 77.52 – Imposition of Retail Sales Tax
7
Wisconsin State Legislature. Wisconsin Code 77.54 – General Exemptions
8
Wisconsin State Legislature. Wisconsin Code 77.53 – Imposition of Use Tax
9
Wisconsin Department of Revenue. Marketplace Provider Common Questions
10
Wisconsin Department of Revenue. Use Tax