Updated October 27, 2026 from live rates

Where to keep cash in Wisconsin

Wisconsin’s top income tax rate is 7.65%. At that rate and 37% federal, a 1-year Treasury bill at 4.50% keeps the most: about $7,088 a year on $250,000 after tax, versus $14 in a default brokerage sweep. A CD or savings account would need to pay 5.12% to keep as much as a 1-year Treasury bill at 4.50%.

Option

Rate

Kept a year on $250,000

1-year Treasury bill

4.50%

$7,088

3-month Treasury bill

4.22%

$6,647

CFG Bank 1-year CD

4.65%

$6,434

Treasury-only money fund

3.79%

$5,969

Marcus by Goldman Sachs 11-month No-Penalty CD

4.00%

$5,535

Wealthfront Cash Account

3.55%

$4,912

Municipal money fund (not your state's)

1.45%

$3,348

Merrill Edge

0.01%

$14

Why Treasuries win in Wisconsin

Savings accounts, CDs and most money funds pay interest that Wisconsin taxes at up to 7.65%. Treasury bills don’t. So a Treasury bill paying 4.50% keeps what a fully taxable account paying 5.12% would, for a top-bracket Wisconsin resident. Today the best 1-year CD we track pays 4.65% and the best savings account 3.55%.

Municipal money funds in Wisconsin

We don’t list a money fund that holds only Wisconsin municipal debt. A national municipal fund is free of federal tax but generally taxed by Wisconsin; for a top-bracket resident it needs at least 3.07% to beat a 1-year Treasury bill.

Wisconsin taxes on cash, in brief

Top income tax rate: 7.65%. Your own rate may be lower; change it above.
Interest on U.S. Treasury bills, notes and bonds: exempt from state and local income tax, taxed federally.
Savings accounts, CDs and prime or government money funds: taxed by Wisconsin, except the share of a fund’s income that comes from U.S. Treasuries.

Questions

Is Treasury bill interest taxed in Wisconsin?

No. Interest on U.S. Treasury bills, notes and bonds is exempt from state and local income tax under federal law, so Wisconsin doesn’t tax it. It is still subject to federal income tax. Interest from savings accounts and CDs is taxed by Wisconsin at up to 7.65%.

Where should I keep cash in Wisconsin?

At Wisconsin’s top rate and 37% federal, a 1-year Treasury bill keeps the most after tax today (4.50%). The answer depends on your brackets; the calculator on this page updates for yours.

What rate does a CD need to beat Treasury bills in Wisconsin?

At Wisconsin’s top rate and 37% federal, a CD or savings account needs at least 5.12% to keep as much as a 1-year Treasury bill paying 4.50%.

Rates: each provider’s own page and the U.S. Treasury, October 27, 2026. State rates: Tax Foundation, 2026 (top single-filer rate; local taxes not included). General information, not tax advice. Other states →