Report Estimates Wisconsin Tip and Overtime Tax Elimination Could Reduce Collections by $2.7 Billion
A report indicates that eliminating taxes on tips and overtime in Wisconsin could cost the state $2.7 billion in tax collections over the next 10 years.

Oklahoma City, OK, October 16, 2026 —
A report estimates that eliminating taxes on tips and overtime in Wisconsin could reduce state tax collections by $2.7 billion over the next 10 years. The figure is presented as a potential cost associated with the tax change, rather than as a confirmed loss of revenue.
The information available does not identify the report, its author or the date it was released. It also does not explain how the estimate was calculated, what assumptions it uses, or whether it accounts for any offsetting changes in state revenue. No details were provided about the design or status of a specific policy proposal.
As a result, the $2.7 billion figure cannot be assessed further from the information provided. The summary does not specify whether the estimate reflects a particular start date, which workers or types of income would qualify, or how the proposed tax treatment would be applied. It also does not provide an annual breakdown of the projected amount.
The estimate covers a 10-year period, but the report’s underlying analysis and methodology were not included in the available information. Those details would be needed to understand how the total was derived and what conditions the projection depends on.
For now, the stated finding is limited to the report’s broad projection: eliminating taxes on tips and overtime in Wisconsin could reduce state tax collections by $2.7 billion over 10 years. Further specifics about the report and the policy scenario were not provided.
Story summarized from the original created by Black Chronicle News Service on blackchronicle.com, see more information here.
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