05/11/2026
Today, Republicans and Governor Evers reached an agreement during the Special Session on Surplus Payments and Property Tax Relief that returns $1.8 billion of Wisconsin’s budget surplus directly back to taxpayers across our state.
This surplus exists because Republicans held the line on spending during last year’s bipartisan budget negotiations, allowing Wisconsin to remain fiscally responsible while still investing in priorities that matter.
After months of negotiations, this plan delivers relief in three major ways:
✅ Direct Surplus Payments
Full-time Wisconsin residents who filed a 2024 income tax return will receive a $300 rebate, while married couples filing jointly can receive up to $600.
In total, more than $862 million will be returned directly to Wisconsin taxpayers.
✅ Property Tax Relief
The agreement provides more than $300 million in property tax relief for every school district in Wisconsin through the school funding formula — including districts that currently receive zero aid through the general formula.
An additional $50 million in property tax relief will come through technical colleges by reducing the amount of debt they can levy on taxpayers. Republicans have worked for years to reduce this burden, and this bill cuts the remaining debt levy in half, from $100M to $50M.
✅ Income Tax Relief for Workers
This legislation eliminates Wisconsin state income taxes on tipped wages and overtime pay, providing more than $230 million in permanent tax relief for hardworking Wisconsinites.
Unlike the federal tax relief passed by Republicans in Congress and signed by President Trump, Wisconsin’s tax relief does not expire in 2028 — it will remain in place permanently.
This builds on the $1.5 billion in tax relief Republicans secured in the last bipartisan budget agreement, which included the second-largest income tax cut in Wisconsin history.
✅ Historic Investment in Special Education
The 2025-27 state budget already secured the largest increase in special education reimbursement rates in state history:
• 42% reimbursement in year one
• 45% reimbursement in year two
This agreement adds another $85 million in year one, and $230 million in year two, bringing reimbursement rates to 50% in 2026-27 — doubling the rate since 2019.
The increased funding will also support students participating in choice schools, charter schools, special-needs scholarship programs, and open enrollment, including a $16 million increase for these programs.
