Which State Taxes are Best for Business?
The Tax Foundation released the much-anticipated third edition of our State Business Tax Climate Index this morning, which ranks the “business-friendliness” of the 50 state tax systems. Here’s the bottom line:
|
Major Components of the State Business Tax Climate Index, 2006 |
||||||
|
State |
Overall Rank |
Business Tax Index Rank |
Individual Income Tax Index Rank |
Sales and Gross Receipts Tax Index Rank |
Unemploy-ment Insurance Tax Index Rank |
Wealth Index Rank |
|
Alabama |
14 |
14 |
17 |
11 |
4 |
6 |
|
Alaska |
3 |
48 |
4 |
1 |
43 |
18 |
|
Arizona |
25 |
29 |
20 |
40 |
12 |
12 |
|
Arkansas |
41 |
44 |
32 |
37 |
41 |
13 |
|
California |
40 |
39 |
47 |
38 |
20 |
7 |
|
Colorado |
12 |
6 |
14 |
26 |
21 |
14 |
|
Connecticut |
39 |
16 |
19 |
33 |
26 |
50 |
|
Delaware |
8 |
25 |
26 |
3 |
11 |
10 |
|
Florida |
4 |
13 |
4 |
20 |
1 |
16 |
|
Georgia |
21 |
8 |
27 |
7 |
32 |
27 |
|
Hawaii |
33 |
26 |
44 |
43 |
22 |
3 |
|
Idaho |
24 |
21 |
37 |
17 |
46 |
2 |
|
Illinois |
23 |
15 |
13 |
41 |
37 |
44 |
|
Indiana |
11 |
20 |
10 |
14 |
7 |
19 |
|
Iowa |
42 |
46 |
45 |
13 |
28 |
29 |
|
Kansas |
34 |
45 |
23 |
28 |
15 |
33 |
|
Kentucky |
44 |
40 |
30 |
23 |
48 |
30 |
|
Louisiana |
36 |
34 |
22 |
49 |
9 |
28 |
|
Maine |
45 |
47 |
38 |
10 |
42 |
39 |
|
Maryland |
22 |
7 |
39 |
8 |
17 |
37 |
|
Massachusetts |
27 |
36 |
15 |
9 |
49 |
41 |
|
Michigan |
26 |
49 |
11 |
32 |
40 |
20 |
|
Minnesota |
38 |
41 |
36 |
34 |
35 |
15 |
|
Mississippi |
29 |
33 |
16 |
46 |
2 |
26 |
|
Missouri |
20 |
4 |
25 |
29 |
8 |
17 |
|
Montana |
9 |
17 |
21 |
5 |
24 |
23 |
|
Nebraska |
43 |
42 |
34 |
36 |
14 |
42 |
|
Nevada |
5 |
1 |
7 |
47 |
38 |
11 |
|
New Hampshire |
6 |
38 |
8 |
2 |
44 |
31 |
|
New Jersey |
49 |
50 |
46 |
27 |
27 |
46 |
|
New Mexico |
28 |
31 |
24 |
48 |
18 |
1 |
|
New York |
50 |
30 |
50 |
39 |
47 |
43 |
|
North Carolina |
37 |
22 |
43 |
35 |
5 |
40 |
|
North Dakota |
31 |
35 |
42 |
18 |
36 |
4 |
|
Ohio |
47 |
37 |
48 |
45 |
13 |
48 |
|
Oklahoma |
17 |
8 |
28 |
15 |
3 |
21 |
|
Oregon |
10 |
24 |
33 |
4 |
30 |
8 |
|
Pennsylvania |
16 |
32 |
12 |
19 |
16 |
45 |
|
Rhode Island |
48 |
27 |
40 |
30 |
50 |
49 |
|
South Carolina |
30 |
12 |
29 |
12 |
45 |
32 |
|
South Dakota |
2 |
1 |
1 |
42 |
31 |
9 |
|
Tennessee |
15 |
11 |
9 |
44 |
33 |
38 |
|
Texas |
7 |
18 |
4 |
21 |
6 |
34 |
|
Utah |
18 |
5 |
31 |
24 |
23 |
5 |
|
Vermont |
46 |
43 |
49 |
16 |
10 |
47 |
|
Virginia |
19 |
8 |
18 |
6 |
25 |
36 |
|
Washington |
13 |
19 |
2 |
50 |
39 |
24 |
|
West Virginia |
35 |
28 |
41 |
31 |
34 |
22 |
|
Wisconsin |
32 |
23 |
35 |
25 |
29 |
25 |
|
Wyoming |
1 |
1 |
2 |
22 |
19 |
35 |
|
Note: Rankings do not average across to total. States without a given tax rank equally as number 1. |
Click here for the full study. Click here for a response to recent criticisms of the Index.