1. What is the general sales and use tax rate for the city of Milwaukee?


2. Are retailers responsible for determining whether a transaction occurs in the city of Milwaukee?


3. How did the department determine the sales tax rates applicable to specific street addresses and 9-digit zip codes in its database and lookup tool?


4. As a retailer, will I be liable for collecting the incorrect tax if I relied on the department's database and lookup tool?


5. As a retailer, what should I do if I charge 2% tax on a transaction that did not occur in the city of Milwaukee?


6. As a retailer, what should I do if I did not collect the 2% city of Milwaukee sales tax on a transaction that occurred in the city of Milwaukee?


7. As an individual consumer, what should I do if a retailer did not collect the 2% city of Milwaukee sales tax?


8. As an individual consumer, what should I do if I paid the 2% city of Milwaukee sales tax to a retailer on a transaction that did not occur in the city of Milwaukee?


9. Where can I find additional Wisconsin sales and use tax information?

1. What is the general sales and use tax rate for the city of Milwaukee?

   If a transaction is subject to sales and use tax in the city of Milwaukee on or after January 1, 2024, the sales price or purchase price must be multiplied by 7.9%, comprised of the following sales and use taxes:

   • Wisconsin state – 5.0%
   • Milwaukee County – 0.9%
   • City of Milwaukee – 2.0%
     
     

   Note: Other taxes may apply to sales in Milwaukee. See Fact Sheet 2414, Milwaukee Sales and Use Taxes, for additional information.

2. Are retailers responsible for determining whether a transaction occurs in the city of Milwaukee?

   Yes. Retailers must determine the proper sales tax rate applicable to each transaction.

   Retailers may use our Wisconsin State and Local Sales Tax Rate Lookup to determine the tax rate applicable to a specific street address or 9-digit zip code. Alternatively, retailers and software programmers may use our Wisconsin rate and boundary database files to program into their software to determine the proper tax rate applicable a specific street address or 9-digit zip code.

   In addition to the rate lookup and rate and boundary files, a list of 9-digit zip codes located in the city of Milwaukee is available to help determine if a transaction takes place in the city of Milwaukee.

   A five-digit zip code without a street address is insufficient to determine if a transaction takes place in the city of Milwaukee because 5-digit zip codes often cover jurisdictions both within and outside the city of Milwaukee (e.g., the 53209 zip code covers the cities of Glendale, Brown Deer, and Milwaukee).

3. How did the department determine the sales tax rates applicable to specific street addresses and 9-digit zip codes in its database and lookup tool?

   The department uses street address information from the electronic property tax rolls reported by each municipality/county to the department. If an address is missing or assigned to the incorrect municipality, please contact us so that we can confirm the address information reported by the municipality is correct. You may send an email with the address information to DORSalesandUse@wisconsin.gov or call (608) 266-2776.

4. As a retailer, will I be liable for collecting the incorrect tax if I relied on the department's database and lookup tool?

   No. As long as the database or lookup tool shows a jurisdiction and tax rate, a retailer is not held liable for relying on the information provided in the database and lookup tool. Note: You must enter the address information correctly in the lookup tool in order to get a search result. Instructions and search tips are provided above the search tool.

5. As a retailer, what should I do if I charge 2% tax on a transaction that did not occur in the city of Milwaukee?

   Retailers that overcollect sales tax must return the tax collected in error to their customers or remit the overcollected tax to the department on their Wisconsin sales and use tax return.

   A retailer that intentionally fails to pay tax collected in error back to their customer or to the department may be charged with theft (sec. 77.60(11), Wis. Stats.).

   Retailers that receive a written request from a customer to refund sales tax collected in error must review and make a determination on whether the tax was collected in error within 60 days of the written request. If in error, the retailer must return the tax to their customer (sec. 77.59(9p)(b), Wis. Stats.).

6. As a retailer, what should I do if I did not collect the 2% city of Milwaukee sales tax on a transaction that occurred in the city of Milwaukee?

   Retailers are liable for the proper amount of sales tax regardless of whether it was collected from their customer. Retailers should report the proper amount of tax on the transaction and remit the tax along with the filing of their Wisconsin sales and use tax return. Retailers may be audited and held liable for any amount under-reported to the department.

   Wisconsin allows retailers to bill their customers for additional sales tax owed to the department on a transaction in which the retailer failed to collect the proper amount of tax. Some retailers choose not to bill their customers for such errors, and instead pay the proper amount to the department.

7. As an individual consumer, what should I do if a retailer did not collect the 2% city of Milwaukee sales tax?

   You are liable for use tax on a transaction if a retailer does not collect the correct amount of sales tax. An invoice showing the correct amount of tax paid to a retailer is sufficient evidence to relieve you from further liability.

   If you underpay sales tax to a retailer, report and pay the additional amount as a use tax on either:

   • Your annual Wisconsin income tax return
   • Form UT-5, Consumer Use Tax Return
     
     

   You may also inform the retailer and the department that the retailer is collecting the incorrect amount of sales tax. Send a copy of the invoice to the contact information at the bottom of this page.

8. As an individual consumer, what should I do if I paid the 2% city of Milwaukee sales tax to a retailer on a transaction that did not occur in the city of Milwaukee?

   You may do either of the following:

   • Submit a written request for a refund to the retailer. The retailer must refund sales tax collected in error to the consumer (sec. 77.59(9p)(b), Wis. Stats.).
   • If you have sufficient copies of invoices showing total overpaid Wisconsin sales and use taxes of $50 or more, you may request a refund directly from the department. Submit your refund claim using the department's My Tax Account portal - select "Buyer's Claim for Refund" to get started.
     
     

   You may also inform the retailer and the department that the retailer is collecting the incorrect amount of sales tax. Send a copy of the invoice to the contact information at the bottom of this page.

9. Where can I find additional Wisconsin sales and use tax information?

   Visit our Sales and Use Tax web page to find additional information about Wisconsin sales and use taxes, including registration, filing, and payment information, as card as links to publications and other resources.

Applicable Laws and Rules

This document provides statements or interpretations of the following laws and regulations enacted as of January 22, 2024: chapters 73 and 77, Wis. Stats., and secs. Tax 11, Wis. Adm. Code.

Laws enacted and in effect after this date, new administrative rules, and court decisions may change the interpretations in this document. Guidance issued prior to this date, that is contrary to the information in this document is superseded by this document, according to sec. 73.16(2)(a), Wis. Stats.