New State Business Tax Climate Index Released; Wyoming Is #1

October 11, 2007

Yesterday we unveiled the eagerly awaited Tax Foundation State Business Tax Climate Index for fiscal year 2008. The Index ranks how “business-friendly” the 50 state tax systems are, providing a roadmap for state lawmakers concerned with keeping their states tax-competitive.

The Index ranks states based on the taxes that matter most to businesses and business investment: corporate tax, individual income tax, sales tax, unemployment tax and property tax.

Wyoming tops the list this year as the most business tax-friendly state, followed by South Dakota. At the bottom of the list are Rhode Island and New Jersey.

The Top and Bottom 10 Business Tax-Friendly States in FY2008

Top 10:

Bottom 10:

1. Wyoming

2. South Dakota

3. Nevada

4. Alaska

5. Florida

6. Montana

7. New Hampshire

8. Texas

9. Delaware

10. Oregon

41. Maine

42. Minnesota

43. Nebraska

44. Vermont

45. Iowa

46. Ohio

47. California

48. New York

49. New Jersey

50. Rhode Island

Click here to download the full 64-page State Business Tax Climate Index and click here for the 4-page executive summary.

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