According to the Wisconsin Policy Forum, nearly half of all Wisconsin residents will pay a wheel tax by the end of 2025.
This tax is paid to local municipalities or counties to register a vehicle.
“Some communities implemented these fees a few years ago and already are considering raising them further,” the Wisconsin Policy Forum said in a statement. “Such fees are one of only a few revenue-raising options that state law permits for local governments. But in some places, they are adding significant costs for motorists.”
Statewide revenues from wheel taxes, or vehicle registration fees, totaled over $70 million in fiscal year 2025. A decade ago, the number was less than $10 million.
The relatively new trend of imposing a wheel tax can be pinpointed to stagnant state aid, levy limits, inflation and a limited number of revenue sources, the organization said in its report.
In 2010, only four local governments collected wheel taxes. As of Nov. 1, that number has risen to 63 Wisconsin municipalities, towns and counties, according to WisDOT. The number will rise to 68 in early 2026.
Wheel taxes range across the state from $10 to $100 per year.
