Property Tax Credits: Lottery, First Dollar, Homestead

Look at a Wisconsin property tax bill and below the total you’ll see lines that reduce it. Each is a state program, and they work very differently: some are automatic, one has to be applied for, and one isn’t on the bill at all.

The school levy tax credit

The biggest is built in. The state pays part of every municipality’s school property taxes through the school levy tax credit, which is part of the “state credit” on your bill ¹. You don’t apply for it; it’s already reflected in the net rate printed on the bill. It’s one reason the Department of Revenue calls Wisconsin “almost unique” among states in how much tax it raises at the state level but spends locally ¹.

The first dollar credit

The first dollar credit goes to the owner of every parcel that has at least one improvement, a house, a cabin, a barn. It equals the school tax on a certain amount of the improvement’s value, an amount the Department of Revenue sets each year so the available money covers all the claims. It appears on the bill as a reduction, split evenly across installments if you pay in parts ¹.

The lottery and gaming credit

The lottery and gaming credit is paid from a separate state fund filled by the Wisconsin Lottery, on-track betting, and bingo. Each November the state divides the available money by the number of expected claims to set a maximum credit value; your credit is that value (or your home’s value, if lower) times your school tax rate ².

It goes only to a primary residence: you must be a Wisconsin resident who owns the home and lives in it as of January 1. Rentals, business property, vacant land, and garages don’t qualify, and an owner can normally claim only one home ². Unlike the other credits, it has to be applied for, with your county treasurer (or city treasurer in some cities). When you buy a home, the credit stays with the property if the previous owner lived there on January 1, and you should file your own application ².

If your home qualified but the credit isn’t on your bill, you can apply to your town, village, or city treasurer by January 31 and get it credited or refunded, or file a late claim with the Department of Revenue by October 1 ². If you sell, move out, or start renting the home, you’re supposed to notify the county treasurer within 30 days ².

The homestead credit

The homestead credit isn’t on the property tax bill. You claim it with your Wisconsin income tax return on Schedule H (or the simpler H-EZ), and it’s paid to you directly. It’s meant to soften property taxes and rent for people with lower incomes, and renters qualify too, counting part of their rent as property tax ^{3 1}.

For 2025 you may qualify if ³:

• you owned or rented a home subject to Wisconsin property tax, were a Wisconsin resident all year, and were 18 or older;
• your household income was under $24,680 (household income counts taxable and some nontaxable income, minus $500 for each dependent);
• you had earned income, were disabled, or were 62 or older; and
• no one else could claim you as a dependent (unless you were 62 or older).

The credit depends on how your property taxes and rent compare to your income, up to a maximum of $1,168 ³.

Other help

Wisconsin has no property tax exemption for veterans, but eligible veterans and surviving spouses can claim the state’s veterans and surviving spouses property tax credit, run by the Department of Veterans Affairs. Older homeowners can borrow to pay property taxes through WHEDA’s property tax deferral loan program, repaid when the home is sold or they move ¹.

Try it

Check your own bill for three lines: the first dollar credit, the lottery and gaming credit, and the state credit. If the lottery credit is missing and you lived there on January 1, you have until January 31 to claim it from your treasurer.