Key Takeaways:
- Wisconsin homeowners are experiencing a significant increase in property taxes, with an average rise of 7.8% in K-12 school property taxes, the largest increase in three decades.
- The increase is driven by local referenda, increases in per-pupil revenue limits, and flat state support for schools.
- County property taxes are expected to rise 3.1%, while tax levies for all local governments are expected to see their largest increase since at least 2018.
- The shift in responsibility for paying for local government services, especially schools, is falling more heavily on property taxpayers.
- Homeowners are concerned about the impact of the tax increases on their budgets and the potential for future increases.
Introduction to the Issue
When Brad Cortright opened his property tax bill, he was shocked to see a significant increase of $2,400. This experience is not unique to Cortright, as many Wisconsin homeowners are facing similar increases. A report by the Wisconsin Policy Forum found that gross K-12 school property taxes rose an average of 7.8% in December, the largest increase in three decades. This increase is largely due to local referenda and increases to per-pupil revenue limits in the last two years.
Causes of the Increase
The Wisconsin Policy Forum report identified three factors driving up schools’ property tax levies: flat state support, an increase in per-pupil aid limits, and widespread voter approval of school referendums. School districts are funded by a mix of taxpayer dollars, state aid, and federal aid. The Republican-led Legislature and Gov. Tony Evers maintained the state’s increase in the state’s per pupil revenue limit on districts at $325 per year, a limit set in the 2023-25 budget through the governor’s partial veto. This decision, combined with the freeze on state general school aids, contributed to the record property tax increase.
Impact on Homeowners
The impact of the tax increase is being felt by homeowners across the state. Wayne Boardman, a single parent of two teenagers, purchased his home in Beloit in September 2024, attracted by the relatively low tax rate. However, his taxes have since increased from $1,600 to $2,200, putting him at the top of his budget. Boardman is concerned about the impact of the tax increase on his ability to afford his mortgage payment. Similarly, Brad Cortright, who has had five children go through the Wauwatosa School District, is torn about the tax hike, citing concerns about future referendums and the potential for further increases.
Regional Examples
The report highlights several regional examples of the impact of the tax increase. In Beloit, the School District levy nearly tripled, rising from $5.6 million in 2024 to $16.2 million in 2025, despite a failed fall referendum. In Madison, voters passed two referenda in 2024 totaling $607 million, which will be funded by taxpayers. The Madison Metropolitan School District’s property tax increase alone accounts for 17% of the rise in total statewide K-12 levies. In Wauwatosa, the average property tax levy increase exceeds 30%, with Cortright’s tax bill increasing by $2,400.
Future Projections
The report warns that property tax bills are likely to continue to rise. Gross statewide property tax levies are on pace to grow by roughly 5%, according to Department of Revenue data and Legislative Fiscal Bureau projections. This is higher than this year’s growth of 4.4% and the highest since at least December 2007. The lack of increases to state tax credits to offset the impact of these tax levy raises means that taxpayers will likely see the full impact on their incoming bills. This is a concern for homeowners, particularly those who are already struggling to afford their mortgage payments. As housing affordability becomes a major issue, some taxpayers and voters will likely raise concerns about this year’s property tax increases.