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No.
Among Midwestern states, Minnesota has the highest income tax rate in the highest-income tax bracket — 9.85% for an individual with annual income over $183,340.
Wisconsin is next, at 7.65%, for individuals earning over $304,170.
Illinois and Michigan both have flat tax rates of 4.95% and 4.25%, respectively. Iowa currently has a 6% top tax bracket but is phasing in a 3.9% flat rate by tax year 2026.
The Wisconsin Legislature approved a 2023-25 state budget, awaiting action by Gov. Tony Evers, that would eliminate one of the four tax brackets and reduce all income tax rates.
Wisconsin’s top rate would drop to 6.5%. Residents earning $1 million or more would save an average $30,286.
A Wisconsin 3.25% flat tax would raise gross state product 4.5% and after-tax household income 5.27% and drop tax revenue 16.8%, the University of Wisconsin-Madison Center for Research on the Wisconsin Economy said in a February 2023 report.
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Sources
Minnesota Department of Revenue Minnesota Income Tax Rates and Brackets
Tax Foundation State Individual Income Tax Rates and Brackets for 2023
Iowa Department of Revenue 2023 Changes to Iowa Individual Income Tax
Federation of Tax Administrators State Individual Income Taxes
Wisconsin State Legislature Fiscal Estimate — 2023 Session
CROWE The Economic Impact of Lowering Income Tax Rates in Wisconsin
DrydenWire (3:25) Senator Romaine Quinn Talks Wisconsin Budget
Wisconsin State Legislature General Fund Taxes Omnibus Motion
Iowa Department of Revenue 2023 Changes to Iowa Individual Income Tax
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