Overall Rank
Rank
Rank
The State Business Tax Climate Index is a measure of how well states structure their tax systems. It enables policymakers, business leaders, and taxpayers to gauge how their states’ tax systems compare, and provides a roadmap for improvement.
Hover over a state in the map to see its rankings. Click a state or tax category to learn more!
Overall and Component Tax Ranks
State | Overall
Rank | Corporate
Taxes | Individual
Taxes | Sales
Taxes | Property
Taxes | Unemp.
Insur. Taxes |
|---|---|---|---|---|---|---|
| AlabamaAL | 35 | 22 | 22 | 49 | 12 | 11 |
| AlaskaAK | 3 | 26 | 1 | 5 | 38 | 25 |
| ArizonaAZ | 21 | 13 | 18 | 47 | 6 | 15 |
| ArkansasAR | 39 | 39 | 30 | 44 | 22 | 32 |
| CaliforniaCA | 48 | 32 | 50 | 41 | 13 | 13 |
| ColoradoCO | 18 | 18 | 15 | 39 | 14 | 35 |
| ConnecticutCT | 44 | 31 | 37 | 27 | 49 | 19 |
| DelawareDE | 15 | 50 | 34 | 1 | 20 | 3 |
| FloridaFL | 4 | 19 | 1 | 29 | 10 | 2 |
| GeorgiaGA | 36 | 10 | 42 | 28 | 23 | 38 |
| HawaiiHI | 27 | 14 | 31 | 23 | 16 | 27 |
| IdahoID | 20 | 25 | 23 | 26 | 3 | 46 |
| IllinoisIL | 29 | 36 | 16 | 35 | 45 | 42 |
| IndianaIN | 9 | 23 | 10 | 9 | 4 | 10 |
| IowaIA | 40 | 48 | 33 | 19 | 39 | 34 |
| KansasKS | 23 | 38 | 19 | 31 | 19 | 12 |
| KentuckyKY | 33 | 27 | 29 | 14 | 36 | 47 |
| LouisianaLA | 42 | 40 | 27 | 50 | 30 | 4 |
| MaineME | 28 | 41 | 26 | 8 | 41 | 44 |
| MarylandMD | 43 | 20 | 46 | 18 | 42 | 24 |
| MassachusettsMA | 22 | 35 | 12 | 12 | 46 | 49 |
| MichiganMI | 12 | 8 | 14 | 11 | 21 | 48 |
| MinnesotaMN | 46 | 43 | 45 | 25 | 28 | 37 |
| MississippiMS | 24 | 11 | 20 | 38 | 35 | 5 |
| MissouriMO | 16 | 5 | 28 | 24 | 7 | 7 |
| MontanaMT | 6 | 12 | 21 | 3 | 9 | 20 |
| NebraskaNE | 25 | 28 | 24 | 13 | 40 | 9 |
| NevadaNV | 5 | 33 | 1 | 42 | 8 | 45 |
| New HampshireNH | 7 | 45 | 9 | 2 | 44 | 43 |
| New JerseyNJ | 50 | 42 | 48 | 46 | 50 | 36 |
| New MexicoNM | 34 | 24 | 35 | 40 | 1 | 16 |
| New YorkNY | 49 | 7 | 49 | 43 | 47 | 30 |
| North CarolinaNC | 11 | 3 | 13 | 20 | 32 | 6 |
| North DakotaND | 30 | 16 | 36 | 34 | 2 | 14 |
| OhioOH | 45 | 47 | 47 | 30 | 11 | 8 |
| OklahomaOK | 32 | 9 | 38 | 36 | 15 | 1 |
| OregonOR | 10 | 34 | 32 | 4 | 18 | 31 |
| PennsylvaniaPA | 26 | 44 | 17 | 21 | 33 | 50 |
| Rhode IslandRI | 41 | 30 | 39 | 22 | 43 | 23 |
| South CarolinaSC | 37 | 15 | 41 | 32 | 24 | 29 |
| South DakotaSD | 2 | 1 | 1 | 33 | 25 | 39 |
| TennesseeTN | 14 | 21 | 8 | 45 | 29 | 22 |
| TexasTX | 13 | 49 | 6 | 37 | 37 | 26 |
| UtahUT | 8 | 4 | 11 | 17 | 5 | 21 |
| VermontVT | 47 | 37 | 44 | 16 | 48 | 18 |
| VirginiaVA | 31 | 6 | 40 | 10 | 31 | 41 |
| WashingtonWA | 17 | 46 | 6 | 48 | 27 | 17 |
| West VirginiaWV | 19 | 17 | 25 | 15 | 17 | 28 |
| WisconsinWI | 38 | 29 | 43 | 7 | 26 | 40 |
| WyomingWY | 1 | 1 | 1 | 6 | 34 | 33 |
| District of ColumbiaDC | 47 | 26 | 43 | 34 | 45 | 30 |
Ranked Tax Categories
Read Full MethodologyCorporate Taxes
The corporate tax component measures impacts of states’ major taxes on business activities, both corporate income and gross receipts taxes.
See MapIndividual Taxes
The individual income tax component of the Index measures the impact of state and local taxes that fall on pass-through businesses.
See MapSales Taxes
The sales tax component measures the impact of both sales and excise taxes, particularly when they fall upon business inputs.
See MapProperty Taxes
The property tax component measures impacts of real and personal property, inventory, estate, inheritance, and other wealth taxes.
See MapUnemployment Insurance Taxes
The unemployment insurance tax component measures the impact of state UI tax attributes, from schedules to charging methods, on businesses.
See MapNotable Ranking Changes
Arizona
Arizona improved six places on the Index’s corporate component as a multiyear phasedown concluded with a 4.9% corporate income tax rate.
California
California extended income but not sales tax hikes, though local sales tax increases dropped California in the Index’s sales tax component.
District of Columbia
Continued tax reform efforts in the District of Columbia, including a corporate rate cut, improved D.C. two places on the Index’s corporate component.
Illinois
Illinois hiked both individual (3.75 to 4.95%) and corporate (7.75 to 9.5%) income tax rates, dropping the state from 28th to 29th on the Index.
Kansas
Kansas addressed structural deficits with a new income tax bracket and a 5.2% top rate, slipping three places on the Index.
New Mexico
New Mexico’s continued phase-in of corporate income tax reductions improved the state one place on the Index’s corporate tax component.
North Carolina
North Carolina reduced the corporate rate to 3% and the individual rate to 5.499%, improving the state’s individual income component ranking.
Rhode Island
Rhode Island unemployment insurance tax reform drove their Index UI component rank from 50th to 23rd and improved them to 41st overall.