Wisconsin Sales Tax Guide for SaaS and E-Commerce Businesses 2025
Wisconsin imposes a 5% state sales tax on tangible personal property and certain digital products. Local county taxes may add up to 0.9%, though some areas also impose stadium or local excise taxes that can increase the total rate.
SaaS (software accessed remotely without a tangible transfer) is generally not taxable in Wisconsin, as it is considered a data processing service rather than the sale of tangible property.
Last updated: October 2025
Quick Reference: Wisconsin Sales & Use Tax 2025
| Topic | Details |
|---|---|
| State sales tax rate | 5% (Wisconsin DOR – Sales & Use Tax) |
| Local rates | Up to 0.9% county tax (County Tax FAQ) |
| Economic nexus threshold | $100,000 in sales into Wisconsin (Remote Sellers Guide) |
| Is SaaS taxable? | No. Treated as exempt data processing service when no tangible property is transferred |
| Registration portal | Wisconsin DOR TAP |
| Tax agency | Wisconsin Department of Revenue |
Get guidance tailored to your business
SaaS, Software & Digital Products in Wisconsin
Wisconsin distinguishes between tangible software, digital products, and remotely accessed services:
- Prewritten (canned) software is taxable whether delivered electronically or on physical media (FAQ – What Is Taxable)
- Custom software (developed or modified for a single client) is exempt
- SaaS (software accessed remotely without physical delivery) is generally treated as a nontaxable data processing service
- Certain digital products — such as digital books, movies, or audio — are taxable as digital goods (Digital Goods FAQ)
- Maintenance or bundled offerings may become taxable if they include updates, downloads, or tangible software components
Additional reference: Wisconsin DOR – Computer Hardware, Software, Services FAQ
E-Commerce & Tangible Goods in Wisconsin
| Category | Taxable? | Notes |
|---|---|---|
| Tangible goods | Yes | Physical goods shipped or delivered into Wisconsin are taxable |
| SaaS / remote software | No | Exempt when accessed remotely without physical transfer |
| Prewritten software | Yes | Taxable, even if delivered electronically |
| Custom software | No | Exempt when developed to client specifications |
| Digital goods / media | Yes | Taxable per Wisconsin’s digital product rules |
For detailed county and local rate breakdowns, see County Tax FAQ.
Economic Nexus & Remote Seller Rules
Remote sellers are required to collect Wisconsin sales or use tax if they exceed $100,000 in gross sales into the state in the current or previous year. There is no transaction threshold.
These rules apply to taxable products or services only; exempt SaaS or data processing services are not subject to collection.
References:
Marketplace Facilitator Rules
Marketplace providers (such as Amazon or Etsy) that facilitate taxable retail sales must collect and remit Wisconsin sales tax when the $100,000 threshold is exceeded.
Facilitators are responsible for collecting tax on taxable goods, software, and digital products sold through their platforms.
References:
Filing & Registration
- Register for a seller’s permit with the Wisconsin Department of Revenue before collecting sales tax Wisconsin DOR TAP
- File returns monthly, quarterly, or annually depending on your tax volume (Sales Tax Filing FAQ)
- Report both state and county taxes on one combined return
- Maintain documentation showing which transactions were taxable, exempt, or digital
- Separate SaaS or exempt data processing from taxable prewritten software on invoices
Reference: Wisconsin DOR Sales & Use Tax
Compliance Notes
- Ensure clear documentation showing SaaS and data processing are accessed remotely (not transferred)
- Digital goods are taxable regardless of delivery method
- Bundled transactions (software + service) should be itemized to avoid taxing exempt services
- Local county and special district taxes apply based on delivery location
Reference: County Tax FAQ
FAQs: Wisconsin Sales Tax for SaaS & E-Commerce
Is SaaS taxable in Wisconsin?
No. SaaS is generally treated as an exempt data processing service when there is no transfer of tangible property.
Are digital goods taxable?
Yes. Wisconsin taxes digital products such as music, movies, and e-books.
Is prewritten software taxable?
Yes. Prewritten (canned) software is taxable whether downloaded or physically delivered.
What is the economic nexus threshold?
$100,000 in gross sales into Wisconsin.
Do marketplace facilitators have to collect?
Yes, for taxable goods and digital products once nexus is met.
Where can I learn more about Wisconsin’s county rates?
See County Tax FAQ for local tax breakdowns.
Official Wisconsin Resources
Learn more about Afternoon
Seamlessly integrated financial stack, that handles your bookkeeping, taxes, and compliance.
