Gross property tax levies across Wisconsin climbed by 5.8% on December 2025 tax bills, marking the biggest jump in nearly two decades, according to data released September 9 by the Wisconsin Policy Forum. This figure captures all levies imposed by local governments and school districts before state tax credits reduce homeowners' net bills. The organization's 2026 Property Values and Taxes DataTool covers all 72 counties and more than 1,840 municipalities statewide.
The statewide levy increase easily outpaced inflation, which stood at 2.6% for 2025, according to the report. Some regions experienced far steeper hikes: Madison's gross levies for all taxing authorities rose 11.9%, the highest since 1985, while Dane County overall saw a 9.9% increase, the most since 1992. In southeast Wisconsin, the total gross levy climbed 5.5%, the largest gain since at least 2008, with Racine County leading at 10.9%. Despite the levy growth, equalized property values statewide increased 7.6% over the prior year as of January 1, 2026—the smallest rise since 2021 but enough to push total statewide values past $1 trillion for the first time. Residential property values grew 7.1%, the smallest gain since 2020, while commercial values jumped 9.1%. The statewide gross property tax rate fell 2.3% on December 2025 bills, the 12th consecutive annual decline.
The report attributes the levy surge primarily to school district tax levies, driven by three factors: voters in many districts approved referenda to raise tax levies, district revenue limits increased this year due to a partial veto by Gov. Tony Evers in the 2023-25 state budget, and state general school aids were frozen by lawmakers and Evers in the 2025-27 budget. In Dane County, school districts made up both the largest and an expanding portion of total property tax bills, while municipal and county shares shrank. The report also notes that Evers and lawmakers tried unsuccessfully last spring to pass legislation that would have cut property and income taxes.
The continued brisk growth in property values allowed the gross property tax rate to keep falling even as levies climbed, according to the Forum. Dane County and the city of Madison saw property value growth slow to 5.9% and 5.0% respectively—the smallest increases since 2021—lagging the statewide average. Madison's residential values rose just 4.7%, the lowest since 2021, while commercial values climbed only 5.6%, down sharply from 13.9% in 2025. Still, Madison's property values remain the state's largest for any municipality at $53.2 billion, and Dane County holds the top spot among counties. The gap between rising levies and property value growth means taxpayers are seeing higher bills even as rates technically decline, a dynamic that may persist if school funding pressures continue without new state aid.