The state Senate voted 21 to 12 to override the veto, one short of the required two-thirds majority.
Republicans needed to get four Democrats to vote with them to succeed with the override, and they only got three.
The Democrats voting for the override were Senators Tim Carpenter and Gary George, both of Milwaukee, and Dave Hansen of Green Bay.
Assembly Republicans scheduled a vote for later tonight to take up a backup plan to implement similar limits on property taxes.
