The 2017 Tax Attitude: Where Does Your State Stand? [INFOGRAPHIC]

Here’s a breakdown of the states with the least and most business-friendly tax systems, according to the 2017 State Business Tax Climate Index.

Note: Number 1 is the most friendly. Number 50 is the least friendly.

The Top 10 States With Business-Friendly Tax Systems


1) Wyoming

  • One of only 9 states to not tax individual income
  • Doesn’t levy gross receipts tax or corporate income tax
  • No taxes on intangible assets (i.e. stocks, bonds, and bank accounts)

2) South Dakota

  • Like Wyoming, no gross receipts tax
  • No tax on individual wages or corporate income

3) Alaska

  • No individual income tax or state-level sales tax
  • Depends heavily on taxes on petroleum revenues
  • Does feature high corporate income tax rates: 9.4%

4) Florida

  • No individual income tax
  • Does feature an Alternative Minimum Tax (AMT) on corporations
  • Sales tax of 6%


5) Nevada

  • No corporate or individual income taxes
  • Does impose gross receipt taxes
  • State sales tax rate of 6.85%

6) Montana

  • No state or local sales tax
  • No taxes on intangible personal property

7) New Hampshire

  • No state sales tax
  • Scores poorly on corporate tax base
  • While the state does tax individual income, it doesn’t tax wages or salaries

8) Indiana

  • Flat state sales tax rate of 3.3%
  • Corporate income tax rate will drop to 4.9% by 2022
  • Individual income tax will drop to 3.23% by 2017

9) Utah

  • Best ranking of any state that imposes corporate taxes
  • Single-rate income tax of 5%
  • Sales tax of 4.7%

10) Oregon

  • No state sales tax
  • Although high income tax rate: 9.9%.
  • Features multiple-bracket corporate income taxes

 

The 10 States With the Least Business-Friendly Taxes

50) New Jersey

  • High property tax
  • Heavy state and local sales tax rates
  • Features one of the worst-structured individual income taxes

49) New York

  • High individual tax income rate
  • High property taxes

48) California

  • Highest top individual tax income rate in the country at 13.3%
  • High AMT on corporations and individuals
  • Highest state sales tax at 7.5%

47) Vermont

  • High personal income tax: 8.95%
  • Scores terribly on property tax rate

46) Minnesota

  • High corporate income tax rate
  • High personal income tax rate: 9.85%
  • High state sales tax: 6.8%

45) Ohio

  • Stiff gross receipt taxes
  • Income tax rates of 4.9%
  • Sales tax: 5.75%

44) Rhode Island

  • Second highest state sales taxes: 7%
  • High property tax rate: 4.94%

43) Connecticut

  • High corporate tax rates: 9%
  • AMT on individuals, in addition to high personal income taxes
  • Only state with a gift tax

42) Maryland

  • High individual income tax
  • Property taxes are high and vary widely
  • Features an estate tax and an inheritance tax

41) Louisiana

  • Heavily taxed business inputs
  • Features high intangible property taxes

Share This Infographic On Your Site