Wisconsin · 85th largest metro area

Buying a home in Madison, Wisconsin

In Madison, the median value of owner-occupied homes is $372,900, Dane County's effective property tax rate is 1.63%, a purchase mortgage carried a median $3,703 in total loan costs in 2025, and median gross rent is $1,413 a month.

Data as of : Census ACS 2020-2024, Census Vintage 2024, HMDA 2025, HUD FY 2027. Sources

Madison home costs, fact by fact

About Madison

Madison, Wisconsin, counts 285,300 residents in Census estimates, within a metro area of 707,606. Median gross rent is $1,413 per month, and owners occupy 46.0% of homes.

Reading the Madison figures

Madison owners estimate $372,900, above the Wisconsin figure of $316,500 and well over Milwaukee's $184,000. Green Bay's owners report $207,200. Rent is $1,413 a month by the census measure, higher than Milwaukee's $1,059 and Green Bay's $932. Ownership reaches 46% of households, below Green Bay, at 57.9%, and above Milwaukee, at 41.8%. These values come from owners, not from recorded sales.

Dane County applies an effective rate of 1.63%, giving a median bill of $6,420 a year on county homes valued at $394,800, a value above the city's own. HUD lists $1,565 for the smaller bedroom count in the Madison area and $2,047 for the larger, above the census rent, and these are not market medians.

Lenders in the county recorded 5,045 loans in 2025, and the median loan cost $3,703, while the middle of the field paid between $2,950 and $5,009. The metro area ranks 85th nationally with 707,606 people, and the city counts 285,300, more than Green Bay's 106,311. Milwaukee, the largest of the three, counts 563,531.

Calculate for Wisconsin

If you buy

Wisconsin state transfer tax

Real estate transfer fee (Wis. Stat. 77.22): $0.30 per $100 of value or fraction of $100 ($3 per $1,000). Change the price: the amount is recalculated instantly.

Price$316,500
State transfer tax$949.50
Share of the price0.3% of the price
Who paysThe seller

Default price: the Wisconsin median value of owner-occupied homes, $316,500 (Census ACS 2025). Rule: Divide the value (full price including any lien) by $100, round up to the next whole unit, multiply by $0.30. The county keeps 20% and sends 80% to the state. Who pays: By statute the fee is imposed on the grantor, the seller; the purchase contract may say otherwise. Not included: county and city transfer taxes, recording fees, title insurance and lender charges. Wisconsin transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: Wisconsin state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

Questions about buying a home in Madison

How much is property tax in Madison?

Homeowners in Dane County pay a median $6,420 a year in property tax, 1.63% of the county median home value of $394,800 (Census ACS 2020-2024). Your bill depends on your assessed value and local rates.

What are closing costs on a mortgage in Madison?

Home-purchase mortgages in Dane County carried median total loan costs of $3,703 in 2025; half of the 5,045 loans fell between $2,950 and $5,009 (HMDA). Total loan costs are the lender and settlement-service charges of the Closing Disclosure; transfer taxes and prepaid items come on top.

Is there a transfer tax when you buy a home in Madison?

Wisconsin charges a real estate transfer fee of 30 cents per $100 of value, or $3 per $1,000, and the law puts it on the grantor, the seller. On a $207,900 sale it is $623.70, collected by the register of deeds at recording.

Is it cheaper to rent or buy in Madison?

It depends on your mortgage rate, down payment and how long you stay. As a benchmark, the median value of owner-occupied homes in Madison ($372,900) equals 22 years of the median gross rent ($1,413 a month), both from Census ACS 2020-2024.

Run your own numbers: rent vs buy calculator · closing costs calculator.

Wisconsin rules that apply in Madison

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Sources

Wisconsin · All states · Federal guides