The State Business Tax Climate Index


Some of the information in this post may be out of date. Please speak to a librarian for more up to date information. 

The Tax Foundation introduces its 2009 State Business Tax Climate Index with the words: “Taxes matter to business.  They affect location decisions, job creation and retention, international competitiveness, and the long-term health of the state’s economy.”  Which states have figured this out and which are sending a “not welcome” sign to businesses considering setting up shop in their state?

Page 2 of the report displays a map showing the 10 worst and the 10 best state business tax climates:
10 Worst Business Tax Climates
50  New Jersey (worst in the country)
49  New York
48  California
47  Ohio
46  Rhode Island (49 in 2008; 50 in 2007 and 2006)
45  Maryland
44  Iowa
43  Vermont
42  Nebraska
41  Minnesota

10 Best Business Tax Climates
1  Wyoming (best in the country)
2  South Dakota
3  Nevada
4  Alaska
5  Florida
6  Montana
7  Texas
8  New Hampshire
9  Oregon
10 Delaware

The index considers 5 component indexes: (1) the corporate tax rate, (2) the individual income tax index, (3) the sales tax index, (4) the unemployment tax index, and (5) the property tax index.  Each component index displays 4 years of data, so readers can view positive and negative changes over time.
An executive summary of the report can be found at: