Madison, WI – Today, Senator Howard Marklein (R-Spring Green) celebrated a bipartisan agreement between the Legislature and the Governor. The $1.8 billion deal comes after months of negotiation and focuses on affordability and supporting strong schools.
The deal includes more than $1 billion in tax relief, including eliminating income tax on overtime, and eliminating taxes on tips. It sends $870 million back to Wisconsin taxpayers directly. Individuals who filed a Wisconsin tax return in 2024 will receive $300, while married couples filing jointly will receive $600. The agreement also increases aids for school districts and lowers costs for property taxpayers.
The package builds on the bipartisan state budget and provides the largest investment in special education ever, bringing the rate to a historic 50 percent for the 2026-27 school year.
"Years of fiscal responsibility have put Wisconsin in a position to deliver meaningful relief for taxpayers and make important investments in our schools," said Sen. Marklein. "This deal has something for everyone. School districts will see budget relief as we continue our historic investment in special education. Taxpayers will see relief from rising costs in the form of decreased property taxes, the elimination of taxes on overtime and tips, and direct rebate checks."
"This landmark bipartisan agreement is the latest achievement in a legislative session defined by cooperation," Marklein continued. "Our bipartisan state budget, coupled with our work to expand healthcare coverage for women, and release funding to begin cleaning up PFAS, while protecting innocent farmers are all examples of what can happen when leaders come together and focus on solutions that benefit all Wisconsinites."