Homestead Credit

State

Wisconsin

Year

2015

Variations in Receipt of Benefit

Benefit Varies with Income

Benefit Type

Circuit Breaker

Benefit

The benefit is a refundable state income tax credit for property taxes paid. It is determined by 2 brackets. For those with income at or below $8,060, the credit is 80% of up to $1,460 taxes paid, for a maximum credit of $1,168. For those with income above $8,060 but less than $24,680, the credit is equal to 80% of the amount by which property taxes exceed 8.785% of household income in excess of $8,060. These factors are indexed to inflation.

How is Benefit Disbursed

Credit to the income tax bill

Eligible Property Type

Residential

Characteristics of Eligible Property

Only residential property is eligible for this program.

Eligibility Criteria

Age

Homeowner

Income Ceiling

Renter

Other Criteria

Description of Eligibility Criteria

The individual must be a homeowner or renter and must be over 18 years of age but not claimed as a dependent during the year the to which the claim relates, unless the claimant is 62 years of age or older. The claimant must have resided in the property for a year when filing the claim. The income ceiling for households in 2015 was $24,680.

Local Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

No local option regarding program features

State Funding for Local Tax Loss

State reimburses all of the local government tax loss

Description of State Funding for Tax Loss

Benefits is refundable if the credit exceeds the taxpayer’s state tax liability.

Record ID

WI101_RR15

Footnotes

For renters, property taxes are assumed to be 20% of rent if heat is included or 25% of rent if heat is not included in the rent. In computing household income, a claimant may deduct $500 for each dependent living with the claimant.

Sources

Wis. Stat. § 71.07 (4); Wis. Stat. § 71.51 ~ § 71.55 (in effect for 2015)
Wisconsin Department of Revenue, Homestead Tax Credit Program Summary FY15 [https://www.revenue.wi.gov/ra/homestead/15hmsted.pdf Accessed on 05/05/2016] View Archived Source

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