Even as income levels rise across Wisconsin, the revenue generated from those gains is not keeping pace.

That’s the message embedded in municipal data released by the Wisconsin Policy Forum, which reveals a growing gap between what residents earn and what they pay in state income taxes.

In 2023, the total adjusted gross income (AGI) reported by residents of Wisconsin cities and villages rose by 3.3%, topping $168 billion. This continues a trend of strong income growth over the last three years, following increases of 6.2% in 2021 and 8.0% in 2022. Yet the amount of individual income tax paid remained flat at $6.3 billion in 2023, showing little movement despite the broader economic expansion.

This divergence is not new. According to the Forum’s analysis, AGI has followed a steady upward

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