What Wisconsin Small Businesses Need to Know About Taxes in 2023

If you’re a small business owner in Wisconsin, it’s important to stay up-to-date on the tax laws and regulations that may affect your business.

As we approach 2023, there are several changes coming that could impact how you file your taxes and what deductions you can claim.

One of the biggest changes coming in 2023 is related to the federal tax code. The Tax Cuts and Jobs Act (TCJA) was passed in 2017 and made significant changes to how individuals and businesses are taxed.

Many of these changes were temporary, and some are set to expire at the end of 2022. This means that starting in 2023, businesses will need to adjust their tax planning strategies accordingly.

It’s important for Wisconsin small business owners to stay up-to-date on their tax obligations, including wisconsin small business taxes, to avoid any unpleasant surprises in the coming tax year.

Additionally, there are several state-specific tax laws that small business owners should be aware of, including sales tax rates and income tax brackets.

By staying informed about these changes and preparing accordingly, small business owners can ensure they are maximizing their deductions and minimizing their tax liability come tax time.

Federal Tax Code Changes

As of 2023, there have been significant changes to the federal tax code that Wisconsin small business owners should be aware of.

One major change is the reduction in tax deductions for certain expenses. Specifically, businesses can no longer deduct expenses related to entertainment or commuting benefits. This means that companies will need to adjust their budgeting and spending habits accordingly.

On a positive note, there are also new tax credits available for small businesses. For instance, if you provide paid family and medical leave for your employees, you may qualify for a tax credit of up to 25% of the wages paid during that leave time.

Additionally, there is a new credit available for employers who establish retirement plans for their workers. Make sure to talk with your accountant or tax professional to see how these changes could impact your business’s bottom line.

Adjusting Tax Planning Strategies

As small businesses prepare for tax season in 2023, it is essential to adjust their tax planning strategies.

One factor to consider is the changes in tax credits and deduction limits. For instance, the maximum Section 179 deduction limit will increase from $1.05 million to $1.1 million, with a phase-out threshold of $2.6 million instead of $2.62 million.

Additionally, Wisconsin small businesses should note that certain tax credits are available to them. These include the Research Credit, Work Opportunity Tax Credit, and Market-Based Sourcing Credit.

By taking advantage of these credits and adjusting their tax planning strategies accordingly, small businesses can reduce their overall tax liability and put more money back into their business operations.

State-Specific Tax Laws

As a small business owner in Wisconsin, it’s important to understand the state-specific tax laws that will impact your bottom line. Wisconsin offers tax incentives, deductions, and credits that can help you save money on your business taxes.

One example of a tax incentive is the Manufacturing and Agriculture Credit, which allows eligible businesses to claim a credit equal to 7.5% of their qualified production activities income or qualified research expenses.

Additionally, Wisconsin offers several deductions for small businesses such as the Business Development Tax Credit and the Angel Investment Tax Credit. These credits can be used to reduce taxable income and lower your overall tax liability.

It’s important to review all available deductions and credits with a tax professional to ensure you’re taking advantage of all opportunities for savings.

Sales Tax Rates

Let’s talk about sales tax rates in Wisconsin for 2023 – what businesses should know about rates and exemptions.

We’ll cover what’s taxed, what’s exempt, and how to calculate the amount of sales tax due.

Sales Tax Rates In Wisconsin

Are you a small business owner in Wisconsin?

It’s important to stay up-to-date on the latest tax laws so you can avoid any penalties or fines.

One key aspect of taxes for small businesses is sales tax rates.

In Wisconsin, sales tax exemptions are available for certain items like groceries and prescription drugs, but it’s important to know which items qualify in order to avoid overcharging customers.

Additionally, businesses that make over $100,000 in annual sales must register with the state and collect sales tax from their customers.

Keeping track of these tax collection requirements can be a daunting task, but it’s crucial for staying compliant with Wisconsin state law.

Exemptions From Sales Tax

Now that we have discussed the importance of sales tax rates for small businesses in Wisconsin, let’s dive deeper into the topic of exemptions from sales tax.

As mentioned earlier, certain items such as groceries and prescription drugs are tax-exempt in Wisconsin. However, it’s essential to know the eligibility criteria and which items qualify for exemption.

This knowledge will help small business owners avoid overcharging their customers and ensure compliance with state laws. Understanding these tax-exempt items can also benefit businesses by reducing their expenses and increasing their profit margins.

Income Tax Brackets

As we discussed in the previous section, sales tax rates are an important consideration for Wisconsin small businesses. Now let’s shift our focus to income taxes and the corresponding brackets that businesses need to be aware of.

When it comes to income taxes, there are various deductions that small businesses can take advantage of in order to reduce their taxable income. This includes deductions for expenses such as office rent, equipment purchases, and employee salaries. By carefully tracking these expenses throughout the year, small business owners can minimize their tax liability and free up resources for other aspects of their operations.

It’s important to note that tax laws can change from year to year, so it’s crucial for businesses to stay up-to-date on any updates or revisions that may impact their deductions or overall taxable income.

In terms of income tax brackets specifically, Wisconsin has a progressive system with four different tiers based on taxable income levels. Businesses with lower taxable incomes will fall into a lower bracket and pay a lower percentage in taxes than those with higher incomes. It’s important for small business owners to understand where they fall within these brackets in order to properly budget for their tax liabilities and avoid any surprises come tax season.

Additionally, working with a trusted accountant or tax professional can help ensure that all necessary deductions are taken into account and that businesses are maximizing their opportunities for savings.


In conclusion, Wisconsin small businesses need to stay informed about the changes in tax laws that may affect their operations. With the federal tax code changes taking effect in 2023, it is important to adjust tax planning strategies accordingly.

It is also essential to keep up with state-specific tax laws, sales tax rates, and income tax brackets. By staying on top of these changes, businesses can maximize their deductions and minimize their taxes owed.

Seeking the advice of a financial advisor or accountant can also be helpful in navigating these complex regulations. Ultimately, staying informed and proactive can help Wisconsin small businesses thrive in the ever-evolving world of taxation.

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