Tax Foundation Ranks Best States for Business
Wyoming, South Dakota and Nevada rank among the 10 best states for taxes on business, while companies in states like New Jersey, New York and California must struggle with the worst tax codes in the country, according to the 2015 edition of the Tax Foundation’s State Business Tax Climate Index.
Several states moved up in the rankings since last year. Most notably, North Carolina jumped up 28 spots to No. 16. Nebraska (+5), North Dakota (+2) and Oklahoma (+1) also moved up on the list to No. 29, No. 25 and No. 31, respectively. Smaller changes, both positive and negative, were noted in several other states, including Texas, which returned to the top 10 after dropping out last year.
The State Business Tax Climate Index collects data on over a hundred tax provisions for each state and synthesizes them into a single, easy-to-use score. The states are then compared against each other, so that each state’s ranking is relative to actual policies in place in other states around the country. A state’s ranking can rise or fall significantly based not just on its own actions, but on the changes or reforms made by other states.
The top 10 states in the 2015 report are Wyoming, South Dakota, Nevada, Alaska, Florida, Montana, New Hampshire, Indiana, Utah and Texas.
The Tax Foundation is a nonpartisan research organization that has monitored fiscal policy at the federal, state and local levels since 1937. For more information, visit www.taxfoundation.org.