Florida ranks among the 10 best states for taxes on business, while companies in states like New York, New Jersey and California have a far less pleasant tax climate, according to the Tax Foundation’s State Business Tax Climate Index, now in its 8th edition.
The Tax Foundation says it looks at dozens of state tax provisions to create the ranking –a single easy-to-use score that measures each state’s tax climate against every other state. While some similar studies focus on residents’ tax burden they pay each year, the Index focuses on how a tax system enhances or harms a state’s businesses.
“Even in our global economy, a state’s stiffest and most direct competition often comes from other states,” says Tax Foundation economist Mark Robyn. “State lawmakers need to be aware of how their states’ business climates match up to their immediate neighbors and to other states in their region.”
The 10 best states in this year’s Index
2. South Dakota
6. New Hampshire
The 10 lowest ranked states in this year’s Index
44. North Carolina
46. Rhode Island
49. New York
50. New Jersey