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Live in Wisconsin, Work in Rhode Island: Which State Taxes Your Paycheck?

Both states — credit offsets the double taxRhode Island withholds

Answer

Rhode Island withholds and Wisconsin credits. Without an agreement between them, both states are entitled to tax income earned in Rhode Island by a Wisconsin resident. The mechanism that stops you paying twice is the credit on the Wisconsin resident return, which is why the Rhode Island return has to be completed first.

Last verified

Two states can lawfully tax the same wages: Rhode Island because the work happened there, Wisconsin because you live there. Nothing prevents the overlap in advance — it is unwound afterwards, on the Wisconsin return, through the credit for taxes paid to another state.

A Wisconsin resident taxed by another state on the same income claims the credit for taxes paid to other states on Schedule OS. The credit is capped at the Wisconsin tax on that income, so it removes the double tax but never refunds the excess when the other state charges more.

What you file

  1. 1Nonresident return · Rhode IslandForm RI-1040NR

    File the Rhode Island nonresident return FIRST — you need the Rhode Island tax figure before you can complete Wisconsin.

  2. 2Resident return · WisconsinSchedule OS

    File a Wisconsin resident return reporting all income, then claim the credit for tax paid to Rhode Island. The credit is capped at what Wisconsin would have charged on that same income, so if Rhode Island taxes it at a higher rate the difference is not refunded.

The two states, side by side

 WisconsinRhode Island
Taxes wagesYes — graduatedYes — graduated
Reciprocity partners4 (Form W-220)None
Convenience ruleNoNo
Nonresident returnForm 1NPRForm RI-1040NR
Credit for other-state taxSchedule OSForm RI-1040NR Schedule II
Nonresident safe harbourDollar floor publishedNone published
Local income taxNoNo
Revenue departmentWisconsin Department of RevenueRhode Island Division of Taxation
Last verified

The other direction

Reversing the commute does not always reverse the answer. Living in Rhode Island and working in Wisconsin gives:Both states — credit offsets the double tax.

Rhode Island to Wisconsin →

Same two states, different situation

The withholding answer turns on how you are paid and where the work happens, not only on which two states are involved.

Other Wisconsin pairs

Questions people actually ask

I live in Wisconsin and work in Rhode Island. Which state takes the tax out of my paycheck?

Rhode Island withholds and Wisconsin credits. Without an agreement between them, both states are entitled to tax income earned in Rhode Island by a Wisconsin resident. The mechanism that stops you paying twice is the credit on the Wisconsin resident return, which is why the Rhode Island return has to be completed first.

Which state should my employer be withholding for?

Rhode Island. The wages are sourced to Rhode Island, so Rhode Island withholding is correct and there is no Wisconsin withholding to set up.

Will I end up paying tax twice on the same income?

Not twice over, but you will pay the higher of the two rates. Wisconsin gives residents a credit for tax paid to Rhode Island on the same income, claimed on Schedule OS. The credit is capped at the Wisconsin tax on that income, so if Rhode Island taxes it more heavily the excess is not refunded by either state.

How current is this?

The Wisconsin and Rhode Island rules on this page were last checked against Wisconsin Department of Revenue and Rhode Island Division of Taxation on 2026-08-07. We re-check the full grid every December after state legislative sessions close, and re-check the convenience-of-the-employer states quarterly because that is where the rules move fastest.

Sources

Every fact above comes from the revenue department that publishes the rule. We do not cite secondary summaries, and we do not restate a figure we could not find at source.