Which State Has The Best Business Tax Climate? Check Out The Tax Foundation’s New Report
Each year, the nonpartisan Tax Foundation issues a reporting ranking the 50 U.S. states based on the health of their business tax climate. The Foundation looks at five types of taxes to make its determination: corporate income taxes, individual income taxes, property taxes, sales taxes, and unemployment insurance taxes.
According to this year’s report, the ten states with the policies that were best conducive to business growth were: Wyoming, South Dakota, Alaska, Florida, Nevada, Montana, New Hampshire, Indiana, Utah, and Oregon. The report said, “The absence of a major tax is a common factor among many of the top ten states. Property taxes and unemployment insurance taxes are levied in every state, but there are several states that do without one or more of the major taxes: the corporate income tax, the individual income tax, or the sales tax.” For example, neither Wyoming, Nevada, or South Dakota have a corporate income tax.
The states at the bottom of the ranking were: Louisiana, Maryland, Connecticut, Rhode Island, Ohio, Minnesota, Vermont, California, New York, and New Jersey. The report said, “The states in the bottom 10 tend to have a number of shortcomings in common: complex, non-neutral taxes with comparatively high rates.”