Wisconsin Sales Tax for Contractors (2026): Who Pays on a Home Remodel
Whether a Wisconsin contractor charges sales tax on a home remodel, who pays on materials, and three jobs worked at 5%.
Not tax advice. General information from each state's revenue department, checked Oct 29, 2026. Rates shown are the state rate; city and county tax is extra where it applies. The facts of your job and contract can change the answer; for a specific job, ask a tax professional in your state.
The rule in Wisconsin
Materials only
You pay tax on materials and collect none on real property work. Free-standing items and listed repairs are taxable.
5%
5% plus 0.5% county; Milwaukee County 0.9% and City of Milwaukee 2%
Itemizing or time and materials
Time and materials billing is treated like lump sum. This holds when taxable products are under 10% of the price.
None for homeowners
Source: WI Publication 207 (DOR publication, Jan 2019)
“is not permitted to collect sales tax”
Three jobs, worked
| Job | Customer | You pay |
|---|---|---|
| Bathroom $12,000 job, $5,000 materials | $0 | $250 |
| Kitchen $40,000 job, $15,000 materials | $0 | $750 |
| Addition $90,000 job, $35,000 materials | $0 | $1,750 |
On the kitchen: The customer pays no sales tax. You pay $750 on $15,000 of materials at 5%, and build it into the price.
Also check
- Free-standing items and some listed repairs are taxable sales.
Wisconsin sales tax questions
Do contractors charge sales tax in Wisconsin?
Not on a home remodel. The contractor pays tax on materials when buying them and charges the homeowner none.
Is labor taxable in Wisconsin?
Not on remodel work. Repairing listed items, like a furnace, water heater or sink, is taxable, labor included.
What rate do contractors pay on materials in Wisconsin?
5% plus 0.5% county tax. Milwaukee County is 0.9% and the City of Milwaukee adds 2%. You pay it when you buy, like any buyer.
Compare other states
How we checked
We read each state's sales tax rule for construction contractors on the revenue department or legislature site, and its 2026 state rate. Two independent research passes covered all 50 states and DC, and a third reviewer checked the result. Where a state's own page would not load, the row names the copy we read. Last checked .
This guide explains the general rule for remodeling an owner-occupied home. It is not tax advice.