Wisconsin Statutes
Wis. Stat. § 71.02 (2026)
Imposition of tax
✓ current as of July 2026
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71.02(1)(1) For the purpose of raising revenue for the state and the counties, cities, villages and towns, there shall be assessed, levied, collected and paid a tax on all net incomes of individuals and fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds subject to the tax under s. 71.23 (2), by every natural person residing within the state or by his or her personal representative in case of death, and trusts resident within the state; by every nonresident natural person and trust of this state, upon such income as is derived from property located or business transacted within the state including, but not limited by enumeration, income derived from a limited partner’s distributive share of partnership income, income derived from a limited liability company member’s distributive share of limited liability company income, income derived from a covenant not to compete to the extent that the covenant was based on a Wisconsin-based activity, the state lottery under ch. 565, any multijurisdictional lottery under ch. 565 if the winning lottery ticket or lottery share was purchased from a retailer, as defined in s. 565.01 (6), located in this state or from the department, winnings from a casino or bingo hall that is located in this state and that is operated by a Native American tribe or band and pari-mutuel wager winnings or purses under ch. 562, and also by every nonresident natural person upon such income as is derived from the performance of personal services within the state, except as exempted under s. 71.05 (1) to (3). Every natural person domiciled in the state shall be deemed to be residing within the state for the purposes of determining liability for income taxes and surtaxes. A single-owner entity that is disregarded as a separate entity under section 7701 of the Internal Revenue Code is disregarded as a separate entity under this chapter, and its owner is subject to the tax on the entity’s income.
71.02(2)(2) In determining whether or not an individual resides within this state for purposes of this section, the following are not relevant:
71.02(2)(c)(c) Accounts, as defined in s. 710.05 (1) (a), held in financial institutions, as defined in s. 710.05 (1) (c), located in this state.
71.02(2)(d)(d) Corpuses of trusts, in which the individual is a trustee or a beneficiary, located in this state.
71.02(2)(e)(e) Retention of professional services of brokers, as defined in s. 408.102 (1) (c), and of attorneys and accountants located in this state.
71.02(3)(3) This section shall not be construed to prevent or affect the correction of errors or omissions in the assessments of income for former years under s. 71.74 (1) and (2).
71.02 HistoryHistory: 1987 a. 312; 1989 a. 31; 1991 a. 39, 269; 1993 a. 112; 1995 a. 27; 1997 a. 27, 237, 297; 1999 a. 9; 2007 a. 20.
71.02 AnnotationNo act of Congress, treaty, state statute, or agreement with any Indian tribe impairs the state’s right to impose an income tax on enrolled members of one tribe who live and work on a reservation of a different tribe. Ethnicity does not confer any more rights within a tribe on an American Indian who is not a member of the tribe than a non-Indian has. LaRock v. DOR, 2001 WI 7, 241 Wis. 2d 87, 621 N.W.2d 907, 99-0951.
71.02 AnnotationThe Menominee tribe and tribal members residing and working in Menominee county are not subject to the state income tax. 66 Atty. Gen. 290.
Notes of Decisions
Cited in 45
cases, 1923–2001 · leading case: Lincoln Sav. Bank, S.A. v. Wisconsin Dep't of Revenue, 573 N.W.2d 522 (Wis. 1998).
Lincoln Sav. Bank, S.A. v. Wisconsin Dep't of Revenue, 573 N.W.2d 522 (Wis. 1998). “" See Wis. Stat. § 71.02 (1)(c)(intro.) (1985-86).”
Helvering v. Griffiths, 318 U.S. 371 (1943). “Wis. Stat. § 71.02 . In 1926, the New York legislature adopted a provision retroactive to January 1, 1919, the effective date of the first state income-tax law, exempting all stock dividends.”
NCR Corp. v. Dep't of Revenue, 384 N.W.2d 355 (Wis. Ct. App. 1986). “(1975), renders superfluous the reference to the federal income tax deduction in sec. 71.02(1)(c), Stats. (1975). We agree that generally a statute should be construed so that no word or clause is rendered surplusage.”
Midland Fin. Corp. v. Wisconsin Dep't of Revenue, 341 N.W.2d 397 (Wis. 1983). “(1) The term ‘person,’ as used in this act, shall mean and include natural persons, fiduciaries and corporations, and the word ‘corporation’ shall mean and include corporations, joint stock companies, associations or common law trusts organized or conducted for profit unless…”
Van Dyke v. Tax Comm'n, 259 N.W. 700 (Wis. 1935). “4 (2) (b)) that “gains or losses on the sale or disposition of stocks, bonds and other securities and from the sale of real estate or personal property provided for in paragraph (d) of subsection (2) of section 71.02 and in subsection (3) of section 71.”
Welch v. Henry, 271 N.W. 68 (Wis. 1937). ““(a) ‘Person’ shall mean persons other than corporations as defined in subsection (1) of section 71.02. “(b) ‘Dividends’ shall mean all dividends derived from stocks whether paid to shareholders in cash or property received in the calendar year 1933, or corresponding fiscal…”
State ex rel. Froedtert Grain & Malting Co. v. Tax Comm'n, 104 A.L.R. 1478 (Wis. 1936). “(7) For the purposes of this section dividends shall be defined as in section 71.02, except that the tax herein imposed shall not apply to stock dividend or liquidating dividends.”
LaRock v. Wisconsin Dep't of Revenue, 2001 WI 7 (Wis. 2001). “" Wis. Stat. § 71.02 (1993-94). 3 The United States Supreme Court has observed that "[e]njoyment of the privileges of residence within the state, and the attendant right to invoke the protection of its laws, are inseparable from the responsibility for sharing the costs of…”
L & W Constr. Co. v. Wisconsin Dep't of Revenue, 439 N.W.2d 619 (Wis. Ct. App. 1989). “Sec. 71.02, Stats. Rather, the named partners must report their distributive share of partnership income on their own income tax returns.”
Stand. Oil Co. v. Wisconsin Tax Comm'n, 223 N.W. 85 (Wis. 1929). ““Section 71.02. Definition of terms; what income taxable.”
Krueger v. Wisconsin Dep't of Revenue, 369 N.W.2d 691 (Wis. 1985). “Section 71.02(2) (e), Stats. 1979-80, states that “ ‘Wisconsin adjusted gross income’ means federal adjusted gross income, with the modifications prescribed in s.”
Wisconsin Dep't of Revenue v. Gordon, 377 N.W.2d 212 (Wis. Ct. App. 1985). “Section 71.02(l)(f), Stats. To qualify for subchapter S status, a corporation must: (1) be a domestic corporation; (2) not own or be a subsidiary of another corporation; (3) have less than 35 shareholders; (4) have only individuals as shareholders (except for estates and certain…”
— Wis. Stat. § 71.02(1) — 3 cases
Polan v. Wisconsin Dep't of Revenue, 433 N.W.2d 640 (Wis. Ct. App. 1988).
Anderson v. Wisconsin Dep't of Revenue, 473 N.W.2d 520 (Wis. Ct. App. 1991).
LaRock v. Wisconsin Dep't of Revenue, 2000 WI App 24 (Wis. Ct. App. 1999).
— Wis. Stat. § 71.02(1)(c) — 3 cases
Lincoln Sav. Bank, S.A. v. Wisconsin Dep't of Revenue, 573 N.W.2d 522 (Wis. 1998). “" See Wis. Stat. § 71.02 (1)(c)(intro.) (1985-86).”
NCR Corp. v. Dep't of Revenue, 384 N.W.2d 355 (Wis. Ct. App. 1986). “(1975), renders superfluous the reference to the federal income tax deduction in sec. 71.02(1)(c), Stats. (1975). We agree that generally a statute should be construed so that no word or clause is rendered surplusage.”
Lincoln Sav. Bank v. Wisconsin Dep't of Revenue, 558 N.W.2d 902 (Wis. Ct. App. 1996).
— Wis. Stat. § 71.02(2) — 4 cases
Krueger v. Wisconsin Dep't of Revenue, 369 N.W.2d 691 (Wis. 1985). “Section 71.02(2) (e), Stats. 1979-80, states that “ ‘Wisconsin adjusted gross income’ means federal adjusted gross income, with the modifications prescribed in s.”
Schulz v. Wisconsin Dep't of Revenue, 340 N.W.2d 563 (Wis. Ct. App. 1983).
Tracy v. Wisconsin Dep't of Revenue, 394 N.W.2d 756 (Wis. Ct. App. 1986).
Cleaver v. Wisconsin Dep't of Revenue, 447 N.W.2d 102 (Wis. Ct. App. 1989).
— Wis. Stat. § 71.02(2)(a) — 1 case
Cleaver v. Wisconsin Dep't of Revenue, 447 N.W.2d 102 (Wis. Ct. App. 1989).
— Wis. Stat. § 71.02(2)(e) — 3 cases
Kuhnen v. Musolf, 420 N.W.2d 401 (Wis. Ct. App. 1988).
Cleaver v. Wisconsin Dep't of Revenue, 463 N.W.2d 349 (Wis. 1990).
Cleaver v. Wisconsin Dep't of Revenue, 447 N.W.2d 102 (Wis. Ct. App. 1989).
— Wis. Stat. § 71.02(l)(c) — 4 cases
Lincoln Sav. Bank, S.A. v. Wisconsin Dep't of Revenue, 573 N.W.2d 522 (Wis. 1998). “" See Wis. Stat. § 71.02 (1)(c)(intro.) (1985-86).”
NCR Corp. v. Dep't of Revenue, 384 N.W.2d 355 (Wis. Ct. App. 1986). “(1975), renders superfluous the reference to the federal income tax deduction in sec. 71.02(1)(c), Stats. (1975). We agree that generally a statute should be construed so that no word or clause is rendered surplusage.”
Mobil Oil Corp. v. Ley, 416 N.W.2d 680 (Wis. Ct. App. 1987).
Lincoln Sav. Bank v. Wisconsin Dep't of Revenue, 558 N.W.2d 902 (Wis. Ct. App. 1996).
— Wis. Stat. § 71.02(l)(f) — 1 case
Wisconsin Dep't of Revenue v. Gordon, 377 N.W.2d 212 (Wis. Ct. App. 1985). “Section 71.02(l)(f), Stats. To qualify for subchapter S status, a corporation must: (1) be a domestic corporation; (2) not own or be a subsidiary of another corporation; (3) have less than 35 shareholders; (4) have only individuals as shareholders (except for estates and certain…”
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