Wisconsin vacation rental tax rates start at 5.5% and reach as high as about 14.75%, depending on where the property sits. Every short-term rental owes a 5% state sales tax, and in 70 of the state’s 72 counties another 0.5% county sales tax rides on the same base. Most municipalities layer on a local room tax of up to 8%, and ten tourism-heavy areas add a premier resort area tax of either 0.5% or 1.25%. Two cottages twenty miles apart can owe meaningfully different totals, so the rate for your specific address is the number that matters.
The 5% State Sales Tax
Wisconsin imposes a 5% sales tax on the full price of any short-term lodging rental, including vacation homes, cabins, and cottages rented to guests for less than one month.1Wisconsin State Legislature. Wisconsin Statutes 77.52 – Imposition of Retail Sales Tax The statute defines “one month” as a calendar month or 30 days, whichever is shorter, counting the first day but not the last. A guest who checks in June 5 and leaves July 4 has stayed 29 days and is still taxable.
The 5% applies to the entire amount charged, not just the nightly rate. Cleaning fees, pet fees, service charges, and any other mandatory costs billed to the guest are part of the taxable total, even when broken out as separate line items on the invoice.2Wisconsin Department of Revenue. DOR Tax Rates The only stays that escape are those where a guest rents continuously for a full calendar month or 30 days.
Before you can collect this tax, you need a Wisconsin seller’s permit from the Department of Revenue. Apply at least three weeks before your first booking.3Wisconsin Department of Revenue. DOR Sales and Use Tax Permits
The 0.5% County Sales Tax
Seventy of Wisconsin’s 72 counties have adopted a 0.5% county sales tax that stacks on top of the state’s 5% rate.2Wisconsin Department of Revenue. DOR Tax Rates It hits the same base as the state tax, so it applies to the full rental price with all mandatory fees included. For most owners, the combined state-plus-county floor is 5.5% before any local charges enter the picture. If you’re not sure whether your county is one of the two holdouts, ask the county clerk.
Local Room Tax
Wisconsin municipalities can impose a separate room tax on short-term lodging, capped by statute at 8% of the sales price. Many set their rate lower, often between 2% and 8%, and the rate can change at a municipal boundary. A municipality building or renovating a convention center in a county with at least 380,000 residents can exceed the 8% cap under specific statutory exceptions.4Wisconsin State Legislature. Wisconsin Statutes 66.0615 – Room Tax
Room tax is paid to the municipality, not the state, and the revenue primarily funds local tourism promotion.5Wisconsin Department of Revenue. Local Room Tax The municipal clerk for your property’s address can give you the exact figure. Getting this number wrong is one of the more common compliance mistakes because the rate can shift from one side of a town line to the other.
Premier Resort Area Tax
Some tourism-heavy municipalities impose an additional sales tax called the premier resort area tax. To qualify, at least 40% of the taxable property value in the municipality must come from tourism-related businesses.6Wisconsin Department of Revenue. Premier Resort Area Tax The rate is 0.5% in most participating areas. In the City of Wisconsin Dells and the Village of Lake Delton, it is 1.25%.7Wisconsin Department of Revenue. Premier Resort Area Tax
As of 2026, ten municipalities impose this tax:
- 1.25% rate: City of Wisconsin Dells, Village of Lake Delton
- 0.5% rate: City of Bayfield, City of Eagle River, City of Rhinelander, City of Sturgeon Bay (effective July 1, 2026), Town of Minocqua (effective July 1, 2026), Village of Ephraim, Village of Sister Bay, Village of Stockholm
Unlike room tax, premier resort area tax funds municipal infrastructure rather than tourism promotion.7Wisconsin Department of Revenue. Premier Resort Area Tax Where it applies, it covers all taxable sales, including the full lodging price with fees.
What a Fully Stacked Rate Looks Like
A property in a municipality that has adopted every available layer can face a combined rate well above 14%. For a rental in Wisconsin Dells, which carries the heaviest possible load:
- State sales tax: 5%
- County sales tax: 0.5%
- Local room tax: up to 8%
- Premier resort area tax: 1.25%
- Possible combined total: up to 14.75%
A rural property in a county with no local room tax and no premier resort area designation would owe just 5.5%. The range is wide enough that confirming your exact address rates is the single most important step before setting a nightly price.
What Marketplace Platforms Collect for You
Wisconsin law requires marketplace providers that facilitate lodging sales to collect and remit state sales tax on the full amount charged to the guest.8Wisconsin Department of Revenue. Marketplace Providers and Sellers Platforms like Airbnb are therefore responsible for the 5% state sales tax and the 0.5% county tax on bookings they process.9Wisconsin Department of Revenue. Marketplace Provider Common Questions
Local room tax is different. Some platforms have voluntary collection agreements with specific municipalities; others leave the room tax entirely to the owner. Whether yours collects depends on its agreement with your municipality. Don’t assume. Contact your municipal clerk, confirm which taxes are being collected on your behalf, and remit the rest yourself. Owners who guess wrong usually underpay the municipality and end up owing back taxes.
Federal Income Tax on the Rental
Wisconsin tax is only part of the bill. The IRS expects you to report vacation rental income, and the rules turn on how many days you rent.
If you use the home personally and rent it fewer than 15 days during the year, you don’t report any of the rental income. The IRS treats the property as a personal residence rather than a rental.10Internal Revenue Service. Publication 527 – Residential Rental Property This 14-day rule is codified at 26 U.S.C. ยง 280A(g).11Office of the Law Revision Counsel. 26 USC 280A – Disallowance of Certain Expenses in Connection With Business Use of Home You can’t deduct rental expenses either, though normal homeowner deductions like mortgage interest and property tax still work on Schedule A.
Cross 15 days and all rental income becomes reportable. Most owners report income and expenses on Schedule E, where the activity is passive.10Internal Revenue Service. Publication 527 – Residential Rental Property If you provide substantial services beyond handing over a key, such as regular cleaning during the stay, linen changes, or concierge-style help, the IRS treats the rental as a business. In that case it goes on Schedule C, and the income is subject to self-employment tax. The passive-versus-active line changes both the tax rate and the deductions available to you.
Owners who rent 15 days or more can also depreciate the structure, though not the land, over 27.5 years, deducting a share of the building’s value each year against rental income. If you use the property personally part of the year, expenses must be split between rental and personal use, and only the rental share is deductible.10Internal Revenue Service. Publication 527 – Residential Rental Property