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.
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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
