Under current law, electricity and natural gas sold during the months of November, December, January, February, March, and April for residential use is exempt from Wisconsin sales and use tax.

A recent law change in 2025 Wis. Act 15 provides that the exemption for electricity and natural gas sold for residential use is exempt from Wisconsin sales and use tax for the entire year. The exemption applies to electricity and natural gas sold on or after October 1, 2025. For purposes of this exemption, electricity or natural gas is considered sold at the time of billing. If the billing is by mail, the time of billing is the day on which the billing is mailed. As a result of this law change, utility providers must turn off tax on their October 2025 billings rather than the normal shut off that occurred in November to April billings. 

The bills that primary residential members receive from PEC in October will not have sales tax on them. 

Note: "Residential use" means use in a structure or portion of a structure which is a person's permanent residence, but does not include use in transient accommodations, motor homes, travel trailers, or other recreational vehicles.

If you have any questions about this exemption, contact the department by one of the following:

Telephone: (608) 266-2776

Email: DORSalesandUse@wisconsin.gov

Write: Wisconsin Department of Revenue

            Customer Service Bureau

            P.O. Box 8949

            Madison, WI 53708-8949