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1031 Like-Kind Exchange in Wisconsin 2026

Calculate your 1031 like-kind exchange tax savings in Wisconsin. With Wisconsin's 7.65% top state tax rate, your combined savings are higher.

Wisconsin Tax Overview

State Income Tax
7.65%
progressive
Sales Tax
5%
avg combined: 5.43%
Property Tax Rate
1.61%
Median Income
$67,125

Four brackets 3.5%-7.65%. High property taxes (1.61%). Standard deduction phases out. Farm capital gains exclusion. Social Security exempt.

Wisconsin Income Tax Brackets (Single)

3.5%
$0 - $14,320
4.4%
$14,320 - $28,640
5.3%
$28,640 - $315,310
Your bracket
7.65%
$315,310 +
$1,365
Est. Total Savings
No Limit
Max Deduction
Deferral
Deduction Type
27.3%
Combined Tax Rate

1031 Like-Kind Exchange Savings Calculator for Wisconsin

$
$

Federal Savings

$1,100

22% bracket

Wisconsin State

$265

5.3% rate

Total Savings

$1,365

27.3% combined

At a 27.3% combined tax rate in Wisconsin, every $1,000 in deductions saves you $273 in taxes.

Savings by Tax Bracket in Wisconsin

10%
$765
12%
$865
22%
$1,365
24%
$1,465
32%
$1,865
35%
$2,015
37%
$2,115

Includes 5.3% Wisconsin state tax on top of federal savings.

Eligibility Requirements

Real estate investors exchanging investment properties

  • 1Real property only
  • 245-day identification
  • 3180-day completion

Wisconsin residents should verify that this deduction is also recognized on their state tax return for additional savings of up to 7.65%.

Common Mistakes to Avoid

  • !Missing deadlines
  • !Using for personal residence
  • !Forgetting to claim the deduction on your Wisconsin state return (missing up to 7.65% additional savings)

Wisconsin Filing Tips

Standard deduction phases out at higher incomes. Use capital gains exclusions on WI farm and business assets. Social Security exempt. Homestead credit helps offset property taxes.

Required Tax Forms

Form 8824

File these forms with your federal tax return to claim the 1031 like-kind exchange. Wisconsin may require additional state-specific forms.

Other Tax Deductions in Wisconsin

Capital Loss Deduction

Investment

~$819
est. savings

Tax-Loss Harvesting

Investment

~$6,205
est. savings

Investment Interest Expense

Investment

~$1,861
est. savings

Qualified Dividend Tax Rate

Investment

~$3,723
est. savings

Opportunity Zone Investment

Investment

~$12,409
est. savings

QSBS Exclusion (Section 1202)

Investment

~$124,091
est. savings

Installment Sale

Investment

~$9,927
est. savings

NIIT Planning (3.8% Surtax)

Investment

~$6,205
est. savings

1031 Like-Kind Exchange in Neighboring States

Michigan

4.25% top rate (flat)

~$35,795
+34,430 vs Wisconsin

Minnesota

9.85% top rate (progressive)

~$43,432
+42,067 vs Wisconsin

Iowa

3.8% top rate (flat)

~$35,182
+33,817 vs Wisconsin

Illinois

4.95% top rate (flat)

~$36,750
+35,385 vs Wisconsin

Tax Calculators for Wisconsin Cities

MilwaukeeMadisonGreen BayKenoshaRacineAppletonWaukeshaEau ClaireOshkoshJanesville

Calculate Your Full Tax Savings in Wisconsin

Use our free tax calculators to optimize your entire tax return for Wisconsin.

Income Tax CalculatorWisconsin Income TaxFull 1031 Like-Kind Exchange Guide

Frequently Asked Questions

How much can I save with the 1031 Like-Kind Exchange in Wisconsin?

In Wisconsin, the 1031 like-kind exchange can save you an estimated $1,365 per year on a $5,000 deduction. This includes $1,100 in federal tax savings and $265 in Wisconsin state tax savings at the 5.3% marginal rate. The national average savings is $30,000/year.

What is the Wisconsin state income tax rate?

Wisconsin has a progressive income tax system with a top rate of 7.65%. Four brackets 3.5%-7.65%. High property taxes (1.61%). Standard deduction phases out. Farm capital gains exclusion. Social Security exempt.

Who qualifies for the 1031 Like-Kind Exchange in Wisconsin?

Real estate investors exchanging investment properties. The eligibility requirements are the same whether you live in Wisconsin or another state, as this is a federal tax deduction. However, your total savings will vary based on Wisconsin's 7.65% top state tax rate.

What tax forms do I need to claim the 1031 Like-Kind Exchange in Wisconsin?

To claim the 1031 like-kind exchange, you need to file Form 8824 with your federal return. Wisconsin residents should also check if the state allows this deduction on their state return for additional savings of up to 7.65%. Filing status affects your deduction limits and tax bracket.

Is the 1031 Like-Kind Exchange better in Wisconsin than in states without income tax?

Yes, Wisconsin residents benefit more because the state's 7.65% top income tax rate means the deduction reduces both your federal AND state tax liability. In states with no income tax (like Texas, Florida, or Nevada), this deduction only reduces federal taxes. Your combined rate of 27.3% means more savings per dollar deducted.

What is the standard deduction in Wisconsin for 2026?

Wisconsin's standard deduction is $12,760 for single filers and $23,620 for married filing jointly. Standard deduction phases out at higher incomes. Use capital gains exclusions on WI farm and business assets. Social Security exempt. Homestead credit helps offset property taxes.

Related Calculators

Capital Loss Deduction in Wisconsin

Avg savings: $660/year

Tax-Loss Harvesting in Wisconsin

Avg savings: $5,000/year

Investment Interest Expense in Wisconsin

Avg savings: $1,500/year

Qualified Dividend Tax Rate in Wisconsin

Avg savings: $3,000/year

Opportunity Zone Investment in Wisconsin

Avg savings: $10,000/year

QSBS Exclusion (Section 1202) in Wisconsin

Avg savings: $100,000/year