Commuter taxes 2026

Live in Iowa, work in Wisconsin

No reciprocity: you file a nonresident return in the work state and pay its tax. Your home state gives a credit for that tax, so you pay the home state only if its tax is higher.

State income tax: $4,428 a year

Living in Iowa and working in Wisconsin, you'd pay about $4,428 in state income tax on $100,000 of wages, $1,279 more than if you worked in Iowa.

No reciprocity: you file a nonresident return in the work state and pay its tax. Your home state gives a credit for that tax, so you pay the home state only if its tax is higher.

Tax to Wisconsin
$4,428
nonresident
Tax to Iowa
$0
resident, after credit
Total state tax
$4,428
State returns to file
2

State tax at different salaries

WagesTo WITo IATotalIf you worked in IA
$50,000$1,577$0$1,577$1,248
$75,000$2,944$0$2,944$2,198
$100,000$4,428$0$4,428$3,148
$150,000$7,309$0$7,309$5,048
$250,000$12,609$0$12,609$8,848

Single filer, all wages earned in Wisconsin, 2026 state tax rules, standard deductions. Local income taxes not included.

What to do

Local income taxes

Frequently asked questions

Do I pay Wisconsin income tax if I live in Iowa?

Yes. Wisconsin taxes wages earned there by nonresidents. On $100,000 that's about $4,428.

Do I have to file taxes in both Iowa and Wisconsin?

Usually yes: a nonresident return in Wisconsin and a resident return in Iowa, where you claim a credit for the tax paid to Wisconsin. File the Wisconsin return first.

Will I be taxed twice?

Not on the same state-level wages. Iowa credits the tax you pay Wisconsin, so your total is about $4,428 on $100,000, compared with $3,148 if you also worked in Iowa. Local city or county taxes may still apply.

Related

Rules reviewed 2026-09-24 from state revenue departments and the Tax Foundation. Estimates only; confirm with each state's revenue department.