Wisconsin overtime income tax subtraction vetoed

Wisconsin Legislative Events

Published April 3rd, 2026

Detected April 4th, 2026

Summary

Wisconsin Governor vetoed AB461 on April 3, 2026, which would have created a state income tax subtraction for certain overtime compensation under Wisconsin statutes 71.05 and 71.52. The bill had passed both chambers with bipartisan opposition (61-35 in Assembly, 21-12 in Senate). Multiple Senate substitute amendments were ruled not germane before the bill reached the floor.

View original document View source feed page

What changed

Assembly Bill 461 proposed to amend Wisconsin tax law by creating a new income tax subtraction for certain overtime compensation under Wisconsin Statute 71.05(6)(b)57. The bill was sponsored by 27 Republican legislators and would have modified Section 71.52(6) of the statutes. Multiple Democratic senators offered three substitute amendments, all of which were ruled not germane by the Senate Chair, with the rulings upheld on party-line votes (18-15). The bill passed both chambers but was vetoed by the Governor on April 3, 2026.

No compliance action is required as the bill did not become law. Wisconsin employers and employees will continue under existing overtime tax treatment. The vetoed bill would have provided tax relief for overtime wages, potentially reducing state tax liability for eligible workers receiving overtime compensation. Businesses should monitor future legislative sessions for similar proposals.

Source document (simplified)

ChangeBridge / Wisconsin / AB461 Vetoed AB461 Assembly Bill Vetoed 2026-04-03

An income tax subtraction for certain overtime compensation. (FE)

An Act to amend 71.52 (6); to create 71.05 (6) (b) 57. of the statutes; Relating to: an income tax subtraction for certain overtime compensation. (FE)

Bill Details

State Wisconsin

Session 2025-2026 Regular Session

Chamber House

Official Source docs.legis.wisconsin.gov/2025/proposals/re...

LegiScan View on LegiScan

Action History

2026-04-03 A Report vetoed by the Governor on 4-3-2026 2026-04-02 A Presented to the Governor on 4-2-2026 2026-03-25 A Report correctly enrolled on 3-25-2026 2026-03-18 A Received from Senate concurred in 2026-03-17 S Ordered immediately messaged 2026-03-17 S Read a third time and concurred in, Ayes 21, Noes 12 2026-03-17 S Rules suspended to give bill its third reading 2026-03-17 S Ordered to a third reading 2026-03-17 S Decision of the Chair stands as the judgment of the Senate, Ayes 18, Noes 15 2026-03-17 S Point of order that Senate Substitute Amendment 3 was not germane well taken 2026-03-17 S Decision of the Chair stands as the judgment of the Senate, Ayes 18, Noes 15 2026-03-17 S Point of order that Senate Substitute Amendment 2 was not germane well taken 2026-03-17 S Decision of the Chair stands as the judgment of the Senate, Ayes 18, Noes 15 2026-03-17 S Point of order that Senate Substitute Amendment 1 was not germane well taken 2026-03-17 S Read a second time 2026-03-17 S Senate Substitute Amendment 3 offered by Senators Habush Sinykin, Carpenter, Dassler-Alfheim, Drake, Hesselbein, L. Johnson, Keyeski, Larson, Pfaff, Ratcliff, Roys, Smith, Spreitzer, Wall and Wirch 2026-03-17 S Senate Substitute Amendment 2 offered by Senators Roys, Carpenter, Dassler-Alfheim, Drake, Habush Sinykin, Hesselbein, L. Johnson, Keyeski, Larson, Pfaff, Ratcliff, Smith, Spreitzer, Wall and Wirch 2026-03-17 S Senate Substitute Amendment 1 offered by Senators Spreitzer, Carpenter, Dassler-Alfheim, Drake, Habush Sinykin, Hesselbein, L. Johnson, Keyeski, Larson, Pfaff, Ratcliff, Roys, Smith, Wall and Wirch 2026-03-16 S Placed on calendar 3-17-2026 pursuant to Senate Rule 18(1) 2026-02-17 S Report of Joint Survey Committee on Tax Exemptions received, Ayes 5, Noes 4 2026-02-16 S Available for scheduling 2026-02-16 S Report concurrence recommended by Joint Committee on Finance, Ayes 11, Noes 3 2026-02-16 S Executive action taken 2026-02-13 S Report of Joint Survey Committee on Tax Exemptions requested 2026-02-13 S Withdrawn from committee on Senate Organization and rereferred to joint committee on Finance pursuant to Senate Rule 46(2)(c) 2026-02-13 S Available for scheduling 2026-02-13 S Report concurrence recommended by Committee on Agriculture and Revenue, Ayes 5, Noes 3 2026-02-13 S Executive action taken 2026-02-12 S Public hearing held 2026-01-16 S Read first time and referred to committee on Agriculture and Revenue 2026-01-16 S Received from Assembly 2026-01-15 A Ordered immediately messaged 2026-01-15 A Read a third time and passed, Ayes 61, Noes 35, Paired 2 2026-01-15 A Rules suspended 2026-01-15 A Ordered to a third reading 2026-01-15 A Assembly Substitute Amendment 3 adopted 2026-01-15 A Assembly Substitute Amendment 3 offered by Representative Melotik 2026-01-15 A Decision of the Chair upheld, Ayes 52, Noes 44 2026-01-15 A Decision of the Chair appealed 2026-01-15 A Point of order that Assembly Substitute Amendment 4 not germane under Assembly Rule 54 (3)(f) well taken 2026-01-15 A Assembly Substitute Amendment 4 offered by Representative Bare 2026-01-15 A Decision of the Chair upheld, Ayes 52, Noes 44 2026-01-15 A Decision of the Chair appealed 2026-01-15 A Point of order that Assembly Substitute Amendment 5 not germane under Assembly Rule 54 (3)(f) well taken 2026-01-15 A Assembly Substitute Amendment 5 offered by Representative Bare 2026-01-15 A Read a second time 2026-01-15 A Assembly Substitute Amendment 2 offered by Representative Bare 2026-01-15 A Assembly Substitute Amendment 1 offered by Representative Bare 2026-01-14 A Representative Stubbs withdrawn as a coauthor 2026-01-13 A Placed on calendar 1-15-2026 by Committee on Rules 2026-01-13 A Referred to committee on Rules 2026-01-13 A Report passage as amended recommended by Committee on Ways and Means, Ayes 7, Noes 3 2026-01-13 A Report Assembly Amendment 1 adoption recommended by Committee on Ways and Means, Ayes 10, Noes 0 2026-01-13 A Executive action taken 2026-01-09 A Representative Tucker added as a coauthor 2026-01-08 A Public hearing held 2026-01-07 A Assembly Amendment 1 offered by Representative Melotik 2025-10-07 A Fiscal estimate received 2025-09-29 A Representative Stubbs added as a coauthor 2025-09-26 A Read first time and referred to Committee on Ways and Means 2025-09-26 A Introduced

Votes

2026-01-15 Assembly: Decision of the Chair upheld Yea: 52 Nay: 44 2026-01-15 Assembly: Decision of the Chair upheld Yea: 52 Nay: 44 2026-01-15 Assembly: Read a third time and passed Yea: 61 Nay: 35 2026-03-17 Senate: Decision of the Chair stands as the judgment of the Senate Yea: 18 Nay: 15 2026-03-17 Senate: Decision of the Chair stands as the judgment of the Senate Yea: 18 Nay: 15 2026-03-17 Senate: Decision of the Chair stands as the judgment of the Senate Yea: 18 Nay: 15 2026-03-17 Senate: Read a third time and concurred in Yea: 21 Nay: 12

Committee Referrals

2025-09-26 A Ways and Means 2026-01-13 A Rules 2026-01-16 S Agriculture and Revenue 2026-02-13 J Finance

Amendments

2026-01-07 Assembly Amendment 1 2026-01-15 Assembly Substitute Amendment 1 2026-01-15 Assembly Substitute Amendment 2 2026-01-15 Assembly Substitute Amendment 5 2026-01-15 Assembly Substitute Amendment 4 2026-01-15 Assembly Substitute Amendment 3 2026-03-17 Senate Substitute Amendment 1 2026-03-17 Senate Substitute Amendment 2 2026-03-17 Senate Substitute Amendment 3