All-items parity
94.1
US = 100.0
Wisconsin (WI) | All-items parity 94.1
Wisconsin Cost of Living 2026
Wisconsin reads 94.1 on the BEA all-items price parity for 2024, comfortably below the national level, with housing rents at 79.3 and a median home of $294,700. The tax mix is distinctive: one of the lowest state sales taxes in the country at 5% with groceries exempt, set against a 1.51% effective property tax that is among the Midwest's heaviest, and income tax brackets from 3.5% to 7.65%. Madison and Milwaukee tell two different price stories.
5% sales tax, groceries exemptProperty tax 1.51% effectiveMedian home $294,700
Median Home
$294,700
2BR rent $1,149/mo
Median Income
$77,488
Household, Census ACS
Category breakdown
The four BEA price parities vs the nation
| Category | WI index | National avg | Difference |
|---|---|---|---|
| All items | 94.1 | 100.0 | -5.9% |
| Services: housing rents | 79.3 | 100.6 | -21.2% |
| Goods | 94.3 | 99.6 | -5.3% |
| Services: utilities | 89.9 | 98.4 | -8.6% |
| Services: other | 99.5 | 100.1 | -0.6% |
U.S. Bureau of Economic Analysis publishes these four component parities and no others. There is no federal grocery, healthcare or transportation price parity, so this table shows none. Food at home sits inside Goods; medical and transport services sit inside Services: other.
Sources: BEA Regional Price Parities by State (table SARPP), 2024 reference year, U.S. Bureau of Economic Analysis. Census ACS 2024 1-year (median income, home value), Wisconsin Department of Revenue (income and sales tax), Tax Foundation (effective property tax), EIA (electricity rates), KFF (uninsured rate).
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Pros / offsets
What works in Wisconsin.
Housing stays Midwest-honest. A $294,700 median home and $1,149 median two-bedroom rent keep the ownership bar low; outside Dane County, solid family homes in the $180,000 to $260,000 range remain normal in most of the state.
One of the lowest sales taxes in America. The 5% state rate with modest county add-ons is bettered by only a handful of states, and groceries and prescription drugs are exempt. Day-to-day spending quietly costs less here than in most of the country.
Healthcare coverage without the gap. Wisconsin never adopted the ACA Medicaid expansion, but its BadgerCare waiver covers adults up to the poverty line, so the state avoids the classic coverage gap; the uninsured rate is a low 4.8%, and health systems like UW Health and Froedtert anchor strong regional care.
A real second-city bargain in Milwaukee. Milwaukee offers lake-front big-city amenities with housing far below Chicago, 90 minutes south; the same commute-arbitrage logic that fills Kenosha and Racine counties with Illinois plates works for full-time movers too.
Cons / drivers
Where Wisconsin costs more.
Property tax is the sore point. At 1.51% effective, Wisconsin sits in the national top ten: roughly $4,000 a year on the median home, and noticeably more in Dane County. The state's lottery and school-levy credits trim bills slightly without changing the structure.
Income tax reaches 7.65%. The top bracket is high for the region, and middle brackets catch ordinary professional salaries. Neighboring Illinois' flat 4.95% undercuts Wisconsin for high earners, a reversal of the states' housing-cost relationship.
Madison has outgrown its price class. Dane County's tech, university and government employment pushed Madison housing well above the state median; it now prices closer to a coastal college town than to the rest of Wisconsin, with bidding wars on ordinary bungalows.
Northern winters, northern bills. Average lows of 31F bring a long heating season (gas averages $88 a month across the year) and electricity at 15.42 cents per kWh runs above the Midwest norm, so utility budgets lean cold-weather heavy.
Tax + benefit signals
Wisconsin tax and access overview
State income tax
3.5-7.65%
Graduated or flat
Property tax effective
1.51%
Of assessed value, annual
Sales tax (state)
5.00%
Local can add 1-4% more
Uninsured rate
4.8%
Medicaid: not expanded
Your take-home pay in Wisconsin
Federal, Wisconsin and any local income tax on your salary, per paycheck.
The mortgage on a $294,700 home
Monthly payment at today’s rates with Wisconsin property tax (1.51%) and average home insurance.
Metro variation
State averages mask city variation.
Wisconsin averages 94.1 on the BEA all-items parity, but three markets behave differently:
Madison (Dane County): The expensive one. University, state government and a growing tech scene (Epic Systems in Verona) keep vacancy low and prices high; Dane County is the only Wisconsin market where coastal-style supply pressure is the norm.
Milwaukee metro: The value-for-amenities play. City neighborhoods and near suburbs (Wauwatosa, West Allis) sell well under Madison prices, while the North Shore and Waukesha County carry the premium end.
Green Bay, the Fox Valley and up north: Appleton, Oshkosh and Green Bay anchor affordable manufacturing economies; the Northwoods runs on seasonal and retirement money, with lake frontage the one locally expensive asset.
Statewide numbers blend Madison heat with up-north calm; most of Wisconsin lives below the average the index reports.
Frequently Asked
Wisconsin cost of living, answered
Why are Wisconsin property taxes so high?
Local services and schools in Wisconsin are funded primarily through property levies, a structure dating to the state's strong local-government tradition, and the state's school-funding formula still leans on local taxation despite levy limits. The result is a 1.51% effective rate per the Tax Foundation, around $4,000 a year on the median home. Credits on primary residences (school levy and lottery credits) shave the bill but do not change Wisconsin's top-ten national ranking.
Is Wisconsin cheaper than Illinois?
On balance yes for most households, but the taxes cut both ways. Wisconsin's homes are cheaper than Chicagoland's and its 5% sales tax beats Chicago's roughly 10.25%, but Illinois' flat 4.95% income tax undercuts Wisconsin's 3.5 to 7.65% brackets for higher earners, and Illinois exempts retirement income entirely while Wisconsin taxes it. Working families generally come out ahead in Wisconsin; high earners and pension retirees often do not.
Does Wisconsin tax retirement income?
Social Security is fully exempt from Wisconsin income tax. Most other retirement income, pensions, 401(k) and IRA withdrawals, is taxed as ordinary income, with limited exclusions for certain public pensions and for lower-income filers aged 65+. That contrast with Illinois (which exempts all retirement income) is a genuine factor for retirees choosing a side of the border.
How expensive is Madison compared with the rest of Wisconsin?
Substantially: Dane County homes commonly price 40 to 60% above the state's $294,700 median, driven by university and tech employment growth against tight supply. Rents follow. Milwaukee, a bigger metro, is cheaper than Madison, which makes Wisconsin unusual among states, the capital college town outprices the industrial hub.
What does the BadgerCare situation mean for coverage?
Wisconsin never adopted the ACA Medicaid expansion, but its BadgerCare program covers adults up to 100% of the federal poverty line, and above that line residents qualify for subsidized ACA marketplace plans. The combination avoids the coverage gap seen in other non-expansion states, and Wisconsin's uninsured rate of 4.8% is among the lowest in the country despite the non-expansion status.
How do Wisconsin groceries and utilities compare?
BEA publishes no grocery parity; food sits inside the goods parity, 94.3 for Wisconsin against a national 99.6, and groceries are exempt from sales tax. Household grocery spending averages $395 a month. Utilities are the winter story: electricity at 15.42 cents per kWh with an average bill of $118, plus a long gas-heating season averaging $88 a month across the year.