Rates last verified: September 4th, 2026
Sources: Wisconsin Statutes; Wisconsin Department of Revenue; Public Service Commission of Wisconsin. Full citations at the bottom of this page.
Wisconsin folds telecom into its general sales and use tax rather than a separate telecom regime. Wis. Stat. section 77.52(2)(a)5.am taxes prepaid calling services and intrastate, interstate, and international telecommunications services at the state's 5% rate, and counties add their own 0.5% on the same base, with higher rates in Milwaukee. Two more layers matter on a telecom invoice: a per-line police and fire protection fee that the Department of Revenue collects for the Public Service Commission, and a universal service fund assessment on providers' intrastate revenues.
Quick Facts
| Item | Wisconsin Treatment |
|---|---|
| State sales tax | 5% of the sales price of telecommunications services, prepaid calling services, and ancillary services (Wis. Stat. §§ 77.52(1)(a) and 77.52(2)(a)5.) |
| County and city taxes | 0.5% county tax in counties that adopt it, on the same base as the state tax; Milwaukee County moved to 0.9% and the city of Milwaukee added a 2% city tax on January 1, 2024 |
| What counts as taxable telecom | Intrastate, interstate, and international services, private communication services, 900 services, fixed and mobile wireless, paging, fax transmission, and prepaid wireless, per Publication 201; interstate 800 services are excluded |
| Voice over Internet Protocol (VoIP) | The statutory definition taxes transmission "regardless of whether the service is referred to as a voice over Internet protocol service" (Publication 201) |
| Police and fire protection fee | $0.75 per month on each communications service connection with an assigned telephone number, including VoIP connections (Wis. Stat. § 196.025(6)) |
| Prepaid version of the fee | $0.38 on each retail transaction for a prepaid wireless plan that occurs in the state (Wis. Stat. § 196.025(6)) |
| 911 charges | Counties may levy a cost-based 911 charge on service users by ordinance (Wis. Stat. § 256.35(3)); amounts vary by county |
| Universal service fund | Public Service Commission assessment on intrastate gross telecom revenues, currently 0.56285% combined for October 1, 2025 through September 30, 2026 (PSC Docket 5-UF-2025); the commission resets the rate each year, and providers under $200,000 in intrastate gross revenues are exempt |
| Internet access | Not taxable since July 1, 2020 (Publication 201); the federal Internet Tax Freedom Act also bars state and local taxes on internet access |
How Wisconsin Taxes Telecom Services
Wisconsin taxes telecom under the general sales tax. Wis. Stat. section 77.52(2)(a)5.am reaches "prepaid calling services and intrastate, interstate, and international telecommunications services, except interstate 800 services," all at the 5% state rate. The base is broad by design: Publication 201 lists private communication services, 900 services, fixed and mobile wireless, paging, fax transmission, and prepaid wireless calling services as taxable. Ancillary services such as directory assistance, voice mail, caller ID, and conference bridging are taxable under their own subsection, with detailed telecommunications billing services excluded.
The definition settles the VoIP question in the statute's own words. Telecommunications services means electronically transmitting, conveying, or routing voice, data, audio, video, or other information or signals, and the tax applies "regardless of whether the service is referred to as a voice over Internet protocol service" or classified by the Federal Communications Commission as an enhanced or value-added nonvoice data service. Interstate and international services escape only when the service occurs at a location outside Wisconsin; sourcing follows the service address rules in Wisconsin Administrative Code Tax 11.66, which look to the location of the equipment charged for the service or the customer's place of primary use.
The local layer uses the same base at added rates. Counties that adopt the county tax add 0.5%, Milwaukee County collects 0.9% as of January 1, 2024, and the city of Milwaukee collects a 2% city tax from the same date. The Department of Revenue publishes which counties impose the tax and keeps the list current as counties join.
Resale follows the general rule: the sales tax applies to retail sales, not sales for resale, so a carrier buying transport or termination for resale gives its supplier a completed exemption certificate (Form S-211, S-211E, or S-211-SST) and buys tax-free. The police and fire protection fee has its own resale certificate, Form PFP-211.
911 And Other Per-Line Fees
Wisconsin's statewide per-line charge is the police and fire protection fee, which the Department of Revenue now labels its 911 fee. Wis. Stat. section 196.025(6) imposes $0.75 per month on each communications service connection with an assigned telephone number, and the definition covers landline, cellular, and VoIP connections. For multi-line accounts the statute imposes a separate fee on each of the first 10 connections and one additional fee for each 10 additional connections per billed account. Providers remit to the Department of Revenue, which administers the fee for the Public Service Commission, with monthly electronic reporting.
Prepaid wireless pays at the register: $0.38 on each retail transaction for a prepaid wireless plan that occurs in Wisconsin, remitted by the retailer.
Two more items belong on the map. Counties may levy their own 911 charge by ordinance under Wis. Stat. section 256.35(3), calculated by dividing system costs across the exchange access lines in the county, so amounts vary by county and the statute sets no fixed rate. And the Public Service Commission assesses providers for the Wisconsin universal service fund under Wis. Stat. section 196.218: the commission divides the revenue it needs by total intrastate gross telecom revenues to set each year's rate. For October 1, 2025 through September 30, 2026, PSC Docket 5-UF-2025 sets a combined monthly rate of 0.56285% of a provider's 2024 intrastate telecommunications revenues, made up of 0.06684% for the commission's own universal service fund programs, 0.12231% for the Technology for Educational Achievement (TEACH) program, 0.01186% for University of Wisconsin (UW) System services, and 0.36184% for Department of Public Instruction (DPI) programs. Providers with under $200,000 in intrastate gross revenues are exempt, and interconnected VoIP providers are assessable. Publication 201 confirms that 911 charges and police and fire protection fees are excluded from the sales tax base.
Taxability By Service Type
- Intrastate telecommunications services: taxable at 5% plus county and city rates.
- Interstate and international services: taxable when the service occurs in Wisconsin under the sourcing rules; interstate 800 services are excluded.
- VoIP: taxable under the statutory definition, which applies regardless of the VoIP label; VoIP connections also owe the $0.75 police and fire protection fee.
- Ancillary services (directory assistance, voice mail, caller ID, conference bridging): taxable; detailed telecommunications billing services are excluded.
- Prepaid calling and prepaid wireless: taxable at retail; prepaid wireless also owes the $0.38 fee per retail transaction.
- Sales for resale: not retail sales, so not taxed, with a completed exemption certificate; the fee has its own resale certificate.
- Internet access: not taxable since July 1, 2020, and the federal Internet Tax Freedom Act bars state and local taxes on internet access.
How CereTax Handles Wisconsin
Wisconsin's difficulty is the width of the base and the mix of mechanisms. One invoice can carry the 5% state tax, a county rate that depends on the customer's county, Milwaukee's city tax, the per-line police and fire protection fee with its multi-line tiers, and a prepaid fee that applies per transaction instead of per month. CereTax assigns each charge to the right county and city at the rooftop level, applies Wisconsin's base rules by service type, and keeps an audit trail behind every calculation. If you serve customers in Wisconsin, book a demo and bring a real invoice.
For the full evaluation checklist, see what a telecom tax engine should do.
Sources
- Wis. Stat. § 77.52, imposition of retail sales tax and taxable services. Accessed August 28, 2026.
- Wis. Stat. § 196.025(6), police and fire protection fee. Accessed August 28, 2026.
- Wis. Stat. § 196.218, universal service fund. Accessed August 28, 2026.
- Wis. Stat. § 256.35, statewide emergency services number (911 charges). Accessed August 28, 2026.
- Wisconsin Administrative Code Tax 11.66, telecommunication and telecommunications message services. Accessed August 28, 2026.
- Wisconsin Department of Revenue, Publication 201, Wisconsin Sales and Use Tax Information. Accessed August 28, 2026.
- Wisconsin Department of Revenue, 911 fee (police and fire protection fee) page. Accessed August 28, 2026.
- Wisconsin Department of Revenue, county and city sales and use taxes page. Accessed August 28, 2026.
- Public Service Commission of Wisconsin, USF Intrastate Assessment for Telecommunications Providers page and Assessment of Telecommunications Providers overview. Accessed August 28, 2026.
- Public Service Commission of Wisconsin, Docket 5-UF-2025, Administration of the Universal Service Fund 2025, order dated September 30, 2025, setting assessment rates effective October 1, 2025. Accessed August 28, 2026.
- Internet Tax Freedom Act, 47 U.S.C. § 151 note.
See how other states compare on the telecom tax by state hub.
Note: Always confirm current rates and filing obligations directly with the state’s DOR, PUC, or 911 authority before applying charges or remitting payments.
