State Tax Rankings

The 10 best states in this year’s Index are:

1. Wyoming   2. South Dakota   3. Nevada
4. Alaska   5. Florida   6. Montana
7. New Hampshire   8. Indiana   9. Utah
10. Texas

The absence of a major tax is a common factor among many of the top ten states. Property taxes and unemployment insurance taxes are levied in every state, but there are several states that do without one or more of the major taxes: the corporate tax, the individual income tax, or the sales tax. Wyoming, Nevada, and South Dakota have no corporate or individual income tax; Alaska has no individual income or state-level sales tax; Florida has no individual income tax; and New Hampshire and Montana have no sales tax. 

But this does not mean that a state cannot rank in the top ten while still levying all the major taxes. Indiana and Utah, for example, have all the major tax types, but levy them with low rates on broad bases.

The 10 lowest ranked, or worst, states in this year’s Index are:

41. Iowa   42. Connecticut   43. Wisconsin
44. Ohio   45. Rhode Island   46. Vermont
47. Minnesota   48. California   49. New York
50. New Jersey

The states in the bottom ten suffer from the same afflictions: complex, non-neutral taxes with comparatively high rates. New Jersey, for example, suffers from some of the highest property tax burdens in the country, is one of just two states to levy both an inheritance and an estate tax, and maintains some of the worst structured individual income taxes in the country.

http://taxfoundation.org/article/2015-state-business-tax-climate-index

Comments

Georgia ranks 36.  Having spent most of its money on government schools over the past several years, roads and highways have deteriorated, prompting Georgia to raise taxes.  Georgia is also aggressive in recruiting industries, so the tax problem is a problem.

Norb Leahy, Dunwoody GA Tea Party Leader