Which States Have The Most Hospitable Business Tax Environments?
The nonpartisan, nonprofit Tax Foundation recently released its annual report analyzing the business tax environments in each of the 50 U.S. states.
The top 10 states with the most favorable tax environments, in order of favorability, currently are: Wyoming, Alaska, South Dakota, Florida, Montana, New Hampshire, Oregon, Utah, Nevada, and Indiana. The Tax Foundation explains “The absence of a major tax is a common factor among many of the top 10 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, Wyoming, Nevada, and South Dakota all do not have a corporate or individual income tax. In Alaska, there is no individual income or state-level sales tax; Florida doesn’t have an individual income tax; and New Hampshire, Montana, and Oregon do not levy sales taxes.
The states with the lowest rankings are: Vermont, Ohio, Minnesota, Louisiana, Iowa, Arkansas, Connecticut, New York, California, and New Jersey. These states “have a number of afflictions in common: complex, nonneutral taxes with comparatively high rates.”
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