2013 State Business Tax Climate Index: Results

 
 
October 09, 2012

For the full paper click here.

Table 1: 2013 State Business Tax Climate Index Ranks and Component Tax Ranks

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State Overall Rank Corporate Tax Rank Individual Income Tax Rank Sales Tax Rank Unemployment Insurance Tax Rank Property Tax Rank
Alabama 21 17 18 37 13 8
Alaska 4 27 1 5 28 13
Arizona 25 24 17 50 1 5
Arkansas 33 37 28 41 19 19
California 48 45 49 40 16 17
Colorado 18 20 16 44 39 9
Connecticut 40 35 31 30 31 50
Delaware 14 50 29 2 3 14
Florida 5 13 1 18 10 25
Georgia 34 9 40 13 25 30
Hawaii 37 4 41 31 30 15
Idaho 20 19 23 23 47 2
Illinois 29 47 13 34 43 44
Indiana 11 28 10 11 11 11
Iowa 42 49 33 24 34 37
Kansas 26 36 21 32 9 28
Kentucky 24 26 26 9 48 18
Louisiana 32 18 25 49 4 23
Maine 30 41 27 10 32 39
Maryland 41 15 45 8 46 40
Massachusetts 22 33 15 17 49 47
Michigan 12 7 11 7 44 31
Minnesota 45 44 44 35 40 26
Mississippi 17 11 19 28 7 29
Missouri 16 8 24 27 6 6
Montana 8 16 20 3 21 7
Nebraska 31 34 30 26 8 38
Nevada 3 1 1 42 41 16
New Hampshire 7 48 9 1 42 43
New Jersey 49 40 48 46 24 49
New Mexico 38 39 34 45 15 1
New York 50 23 50 38 45 45
North Carolina 44 29 43 47 5 36
North Dakota 28 21 35 16 17 4
Ohio 39 22 42 29 12 34
Oklahoma 35 12 36 39 2 12
Oregon 13 31 32 4 37 10
Pennsylvania 19 46 12 20 36 42
Rhode Island 46 42 37 25 50 46
South Carolina 36 10 39 21 33 21
South Dakota 2 1 1 33 35 20
Tennessee 15 14 8 43 26 41
Texas 9 38 7 36 14 32
Utah 10 5 14 22 20 3
Vermont 47 43 47 14 22 48
Virginia 27 6 38 6 38 27
Washington 6 30 1 48 18 22
West Virginia 23 25 22 19 27 24
Wisconsin 43 32 46 15 23 33
Wyoming 1 1 1 12 29 35
Dist. of Columbia 44 35 36 42 48 24
Note: A rank of 1 is more favorable for business than a rank of 50. Rankings do not average to total. States without a tax rank equally as 1. D.C. score and rank do not affect other states. Report shows tax systems as of July 1, 2012 (the beginning of Fiscal Year 2013).
Source: Tax Foundation.

Table 2: State Business Tax Climate Index, 2011 – 2013

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  2013 2012 2011 Change from 2012 to 2013
State Rank Score Rank Score Rank Score Rank Score
Alabama 21 5.26 20 5.24 21 5.28 -1 +0.02
Alaska 4 7.34 4 7.37 3 7.44 0 -0.03
Arizona 25 5.13 27 5.11 26 5.14 +2 +0.02
Arkansas 33 4.90 31 4.94 32 4.94 -2 -0.04
California 48 3.67 48 3.68 49 3.58 0 -0.01
Colorado 18 5.37 16 5.41 17 5.51 -2 -0.04
Connecticut 40 4.47 40 4.53 40 4.47 0 -0.06
Delaware 14 5.74 12 5.75 12 5.76 -2 -0.01
Florida 5 6.88 5 6.90 5 6.84 0 -0.02
Georgia 34 4.86 34 4.92 35 4.83 0 -0.06
Hawaii 37 4.80 35 4.83 34 4.85 -2 -0.03
Idaho 20 5.28 21 5.23 22 5.21 +1 +0.05
Illinois 29 5.03 28 5.05 16 5.52 -1 -0.02
Indiana 11 5.95 11 5.95 11 5.99 0 0.00
Iowa 42 4.47 41 4.48 42 4.38 -1 -0.01
Kansas 26 5.10 25 5.13 25 5.14 -1 -0.03
Kentucky 24 5.15 22 5.20 24 5.17 -2 -0.05
Louisiana 32 4.91 32 4.93 31 4.94 0 -0.02
Maine 30 5.01 37 4.78 38 4.70 +7 +0.23
Maryland 41 4.47 42 4.43 43 4.22 +1 +0.04
Massachusetts 22 5.17 23 5.17 28 5.12 +1 0.00
Michigan 12 5.86 18 5.37 19 5.37 +6 +0.49
Minnesota 45 4.18 45 4.20 44 4.19 0 -0.02
Mississippi 17 5.37 17 5.39 18 5.39 0 -0.02
Missouri 16 5.46 15 5.48 14 5.64 -1 -0.02
Montana 8 6.22 8 6.25 7 6.30 0 -0.03
Nebraska 31 4.96 30 4.95 30 4.99 -1 +0.01
Nevada 3 7.45 3 7.45 4 7.42 0 0.00
New Hampshire 7 6.25 7 6.31 6 6.35 0 -0.06
New Jersey 49 3.40 50 3.43 50 3.44 +1 -0.03
New Mexico 38 4.71 38 4.72 37 4.76 0 -0.01
New York 50 3.40 49 3.57 48 3.59 -1 -0.17
North Carolina 44 4.21 44 4.22 46 4.08 0 -0.01
North Dakota 28 5.03 29 4.98 33 4.87 +1 +0.05
Ohio 39 4.55 39 4.57 39 4.54 0 -0.02
Oklahoma 35 4.85 33 4.92 29 5.05 -2 -0.07
Oregon 13 5.75 14 5.62 15 5.61 +1 +0.13
Pennsylvania 19 5.33 19 5.32 20 5.33 0 +0.01
Rhode Island 46 4.12 46 4.18 47 3.88 0 -0.06
South Carolina 36 4.81 36 4.82 36 4.77 0 -0.01
South Dakota 2 7.56 2 7.54 2 7.57 0 +0.02
Tennessee 15 5.67 13 5.69 13 5.72 -2 -0.02
Texas 9 6.09 9 6.09 9 6.12 0 0.00
Utah 10 6.04 10 6.05 10 6.09 0 -0.01
Vermont 47 4.08 47 4.10 45 4.17 0 -0.02
Virginia 27 5.09 26 5.12 23 5.20 -1 -0.03
Washington 6 6.38 6 6.36 8 6.20 0 +0.02
West Virginia 23 5.16 24 5.16 27 5.14 +1 0.00
Wisconsin 43 4.37 43 4.39 41 4.40 0 -0.02
Wyoming 1 7.66 1 7.67 1 7.63 0 -0.01
Dist. of Columbia 44 4.25 41 4.48 41 4.43 -3 -0.23
Note: A rank of 1 is more favorable for business than a rank of 50. A score of 10 is more favorable for business than a score of 0. All scores are for fiscal years. D.C. score and rank do not affect other states.
Source: Tax Foundation.

 

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