Wisconsin assesses individual income tax on nonresident travel nurses using four graduated brackets ranging from 3.50 percent to 7.65 percent. Travel nurses completing contracts in Milwaukee, Madison, Green Bay, or La Crosse must report their Wisconsin earnings on Form 1NPR.
Understanding state withholding rules and border state agreements ensures accurate tax reporting across your assignments.
Filing Form 1NPR as a nonresident healthcare provider
Wisconsin requires nonresidents with gross income from Wisconsin sources exceeding $2,000 to file Form 1NPR (Nonresident and Part-Year Resident Income Tax Return). On Form 1NPR, you report your total federal income in Column A and your Wisconsin-specific earnings in Column B.
Wisconsin-source income includes your taxable hourly base pay, overtime, and shift bonuses earned while providing patient care in Wisconsin hospitals. Travel reimbursements and housing allowances paid under a qualifying accountable plan are excluded from Wisconsin gross income.
To calculate your estimated net pay after Wisconsin state deductions, enter your wage breakdown into our Contract Analyzer.
Reciprocity agreements with Illinois, Indiana, and Kentucky
Wisconsin maintains formal income tax reciprocity agreements with Illinois, Indiana, and Kentucky. If you maintain your permanent tax home in one of these three states and commute to work in a Wisconsin healthcare facility, your wages are exempt from Wisconsin income tax.
To prevent Wisconsin state tax from being withheld, provide your employer with Form W-220 (Nonresident Employee's Withholding Reciprocity Declaration). You will pay tax exclusively to your home state. If your agency mistakenly withholds Wisconsin taxes, you must file Form 1NPR at year end to claim a complete refund.
Official guidelines and tax publications can be reviewed at the Wisconsin Department of Revenue.
Meeting duplicate living expense standards
Qualifying for tax-free per diems in Wisconsin requires incurring verifiable duplicate expenses. Renting a room or apartment near your hospital in Madison or Milwaukee while maintaining your permanent home satisfies federal requirements under IRS Publication 463.
Retain all receipts, lease agreements, and bank records. If you want to check your risk profile before signing your contract, run your details through our Tax Home Quiz.
Frequently asked questions
When must a nonresident travel nurse file Form 1NPR in Wisconsin?
Nonresidents must file Wisconsin Form 1NPR if gross income from Wisconsin sources equals or exceeds $2,000 in a calendar year. Travel nurses almost always exceed this threshold on a 13-week contract.
How does reciprocity work between Illinois and Wisconsin?
Wisconsin and Illinois maintain an income tax reciprocity agreement. Illinois residents working healthcare shifts in Wisconsin pay tax only to Illinois by submitting Form W-220 to their staffing agency.
What should I do if an agency erroneously withheld Wisconsin state tax?
If your agency withheld Wisconsin tax despite valid reciprocity, you must file Wisconsin Form 1NPR at year end, report zero taxable Wisconsin wages under the reciprocal agreement, and claim a full refund.