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Wyoming, Alaska and S. Dakota top tax friendly business state list

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E-commerce giant Amazon announced in February it was withdrawing from its plan to build its second headquarters in New York City’s Long Island City. The planned addition of HQ2 in the Queens neighborhood had been highly controversial, particularly for New Yorkers outraged by the nearly $3 billion in tax breaks and subsidies Amazon was going to receive. The move would have made Amazon one of the largest employers in the state.

Since Amazon announced in September 2017 its plans to build a second headquarters, state and local governments nationwide aggressively competed by offering the online retailer a variety of tax break schemes. The flurry of proposals from more than 200 cities put the spotlight on state business taxes and how they vary across the country.

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State tax codes are complex. Several factors, in addition to the corporate tax rate, determine how business-friendly a state is – and how competitive its business environment is. Every year, the Tax Foundation, a think tank focused on tax policy research and education, ranks each state’s business tax climate based on more than 100 variables.

Government funding: These 30 companies, including Boeing, get the most money from the federal government

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Based on the Tax Foundation’s 2019 State Business Tax Climate Index, 24/7 Wall St. listed the states with the best and worst business tax environments.

Methodology

Based on The Tax Foundation’s 2019 State Business Tax Climate Index, 24/7 Wall St. reviewed the states with the best and worst business tax environments. Property tax collections per capita figures are from this report and are for the calendar year 2017. The highest tier in each state’s individual and corporate income tax structures as well as state sales tax rates were obtained from The Tax Foundation’s 2019 Facts and Figures report and are as of January 2019. Seasonally-adjusted unemployment rates are for February 2019 from the Bureau of Labor Statistics.

1. Wyoming
• State sales tax rate: 4.0% (tied – 8th lowest)
• Property taxes paid as pct. of home value: 0.6% (7th lowest)
• Unemployment rate: 3.9% (tied – 17th highest)
• Top individual income tax rate: 0.0% (tied – the lowest)
• Top corporate income tax rate: 0.0% (tied – the lowest)

2. Alaska
• State sales tax rate: 0.0% (tied – the lowest)
• Property taxes paid as pct. of home value: 1.0% (20th highest)
• Unemployment rate: 6.5% (the highest)
• Top individual income tax rate: 0.0% (tied – the lowest)
• Top corporate income tax rate: 9.4% (6th highest)

3. South Dakota
• State sales tax rate: 4.5% (tied – 15th lowest)
• Property taxes paid as pct. of home value: 1.2% (17th highest)
• Unemployment rate: 2.9% (tied – 10th lowest)
• Top individual income tax rate: 0.0% (tied – the lowest)
• Top corporate income tax rate: 0.0% (tied – the lowest)

4. Florida
• State sales tax rate: 6.0% (tied – 16th highest)
• Property taxes paid as pct. of home value: 0.9% (25th highest)
• Unemployment rate: 3.5% (tied – 22nd lowest)
• Top individual income tax rate: 0.0% (tied – the lowest)
• Top corporate income tax rate: 5.5% (15th lowest)

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5. Montana
• State sales tax rate: 0.0% (tied – the lowest)
• Property taxes paid as pct. of home value: 0.7% (18th lowest)
• Unemployment rate: 3.8% (tied – 22nd highest)
• Top individual income tax rate: 6.9% (tied – 14th highest)
• Top corporate income tax rate: 6.8% (22nd highest)

6. New Hampshire
• State sales tax rate: 0.0% (tied – the lowest)
• Property taxes paid as pct. of home value: 1.9% (3rd highest)
• Unemployment rate: 2.4% (tied – 4th lowest)
• Top individual income tax rate: 5.0% (tied – 19th lowest)
• Top corporate income tax rate: 7.7% (16th highest)

7. Oregon
• State sales tax rate: 0.0% (tied – the lowest)
• Property taxes paid as pct. of home value: 0.9% (23rd highest)
• Unemployment rate: 4.4% (9th highest)
• Top individual income tax rate: 9.9% (4th highest)
• Top corporate income tax rate: 7.6% (17th highest)

8. Utah
• State sales tax rate: 6.0% (25th lowest)
• Property taxes paid as pct. of home value: 0.6% (8th lowest)
• Unemployment rate: 3.0% (tied – 12th lowest)
• Top individual income tax rate: 5.0% (tied – 16th lowest)
• Top corporate income tax rate: 5.0% (11th lowest)

9. Nevada
• State sales tax rate: 6.9% (7th highest)
• Property taxes paid as pct. of home value: 0.6% (10th lowest)
• Unemployment rate: 4.3% (tied – 10th highest)
• Top individual income tax rate: 0.0% (tied – the lowest)
• Top corporate income tax rate: 0.0% (tied – the lowest)

10. Indiana
• State sales tax rate: 7.0% (tied – 2nd highest)
• Property taxes paid as pct. of home value: 0.8% (21st lowest)
• Unemployment rate: 3.5% (tied – 22nd lowest)
• Top individual income tax rate: 3.2% (tied – 11th lowest)
• Top corporate income tax rate: 5.8% (tied – 16th lowest)

11. Delaware
• State sales tax rate: 0.0% (tied – the lowest)
• Property taxes paid as pct. of home value: 0.6% (9th lowest)
• Unemployment rate: 3.4% (tied – 20th lowest)
• Top individual income tax rate: 6.6% (17th highest)
• Top corporate income tax rate: 8.7% (9th highest)

12. North Carolina
• State sales tax rate: 4.8% (17th lowest)
• Property taxes paid as pct. of home value: 0.8% (20th lowest)
• Unemployment rate: 3.9% (tied – 17th highest)
• Top individual income tax rate: 5.3% (25th lowest)
• Top corporate income tax rate: 2.5% (7th lowest)

13. Michigan
• State sales tax rate: 6.0% (tied – 16th highest)
• Property taxes paid as pct. of home value: 1.4% (13th highest)
• Unemployment rate: 4.0% (tied – 14th highest)
• Top individual income tax rate: 4.3% (tied – 12th lowest)
• Top corporate income tax rate: 6.0% (tied – 19th lowest)

14. Missouri
• State sales tax rate: 4.2% (13th lowest)
• Property taxes paid as pct. of home value: 1.0% (22nd highest)
• Unemployment rate: 3.2% (tied – 16th lowest)
• Top individual income tax rate: 5.4% (25th highest)
• Top corporate income tax rate: 6.3% (22nd lowest)

15. Texas
• State sales tax rate: 6.3% (tied – 13th highest)
• Property taxes paid as pct. of home value: 1.6% (7th highest)
• Unemployment rate: 3.8% (tied – 22nd highest)
• Top individual income tax rate: 0.0% (tied – the lowest)
• Top corporate income tax rate: 0.0% (tied – the lowest)

16. Tennessee
• State sales tax rate: 7.0% (tied – 2nd highest)
• Property taxes paid as pct. of home value: 0.7% (15th lowest)
• Unemployment rate: 3.2% (tied – 16th lowest)
• Top individual income tax rate: 2.0% (tied – 8th lowest)
• Top corporate income tax rate: 6.5% (tied – 23rd highest)

17. North Dakota
• State sales tax rate: 5.0% (tied – 18th lowest)
• Property taxes paid as pct. of home value: 0.9% (24th highest)
• Unemployment rate: 2.4% (tied – 4th lowest)
• Top individual income tax rate: 2.9% (tied – 9th lowest)
• Top corporate income tax rate: 4.3% (8th lowest)

18. Colorado
• State sales tax rate: 2.9% (7th lowest)
• Property taxes paid as pct. of home value: 0.5% (5th lowest)
• Unemployment rate: 3.7% (tied – 25th lowest)
• Top individual income tax rate: 4.6% (tied – 14th lowest)
• Top corporate income tax rate: 4.6% (9th lowest)

19. West Virginia
• State sales tax rate: 0.0% (tied – the lowest)
• Property taxes paid as pct. of home value: 0.5% (6th lowest)
• Unemployment rate: 5.2% (2nd highest)
• Top individual income tax rate: 6.5% (tied – 18th highest)
• Top corporate income tax rate: 6.5% (tied – 23rd highest)

20. Washington
• State sales tax rate: 6.5% (tied – 9th highest)
• Property taxes paid as pct. of home value: 0.9% (23rd lowest)
• Unemployment rate: 4.5% (8th highest)
• Top individual income tax rate: 0.0% (tied – the lowest)
• Top corporate income tax rate: 0.0% (tied – the lowest)

21. Idaho
• State sales tax rate: 6.0% (tied – 16th highest)
• Property taxes paid as pct. of home value: 0.7% (17th lowest)
• Unemployment rate: 2.9% (tied – 10th lowest)
• Top individual income tax rate: 6.9% (tied – 13th highest)
• Top corporate income tax rate: 6.9% (21st highest)

22. Virginia
• State sales tax rate: 5.3% (21st lowest)
• Property taxes paid as pct. of home value: 0.8% (22nd lowest)
• Unemployment rate: 2.9% (tied – 10th lowest)
• Top individual income tax rate: 5.8% (tied – 21st highest)
• Top corporate income tax rate: 6.0% (tied – 19th lowest)

23. Kentucky
• State sales tax rate: 6.0% (tied – 16th highest)
• Property taxes paid as pct. of home value: 0.8% (19th lowest)
• Unemployment rate: 4.1% (13th highest)
• Top individual income tax rate: 5.0% (tied – 19th lowest)
• Top corporate income tax rate: 5.0% (tied – 12th lowest)

24. Nebraska
• State sales tax rate: 5.5% (tied – 23rd highest)
• Property taxes paid as pct. of home value: 1.6% (8th highest)
• Unemployment rate: 2.8% (6th lowest)
• Top individual income tax rate: 6.8% (tied – 16th highest)
• Top corporate income tax rate: 7.8% (15th highest)

25. New Mexico
• State sales tax rate: 5.1% (20th lowest)
• Property taxes paid as pct. of home value: 0.6% (11th lowest)
• Unemployment rate: 5.1% (tied – 3rd highest)
• Top individual income tax rate: 4.9% (15th lowest)
• Top corporate income tax rate: 5.9% (18th lowest)

26. Oklahoma
• State sales tax rate: 4.5% (tied – 15th lowest)
• Property taxes paid as pct. of home value: 0.9% (24th lowest)
• Unemployment rate: 3.3% (17th lowest)
• Top individual income tax rate: 5.0% (tied – 19th lowest)
• Top corporate income tax rate: 6.0% (tied – 19th lowest)

27. Arizona
• State sales tax rate: 5.6% (24th highest)
• Property taxes paid as pct. of home value: 0.6% (14th lowest)
• Unemployment rate: 5.1% (tied – 3rd highest)
• Top individual income tax rate: 4.5% (tied – 13th lowest)
• Top corporate income tax rate: 4.9% (10th lowest)

28. Kansas
• State sales tax rate: 6.5% (tied – 9th highest)
• Property taxes paid as pct. of home value: 1.3% (15th highest)
• Unemployment rate: 3.4% (tied – 20th lowest)
• Top individual income tax rate: 5.7% (tied – 24th highest)
• Top corporate income tax rate: 7.0% (tied – 19th highest)

29. Massachusetts
• State sales tax rate: 6.3% (tied – 13th highest)
• Property taxes paid as pct. of home value: 1.1% (18th highest)
• Unemployment rate: 3.0% (tied – 12th lowest)
• Top individual income tax rate: 5.1% (tied – 24th lowest)
• Top corporate income tax rate: 8.0% (tied – 12th highest)

30. Maine
• State sales tax rate: 5.5% (tied – 23rd highest)
• Property taxes paid as pct. of home value: 1.2% (16th highest)
• Unemployment rate: 3.4% (tied – 20th lowest)
• Top individual income tax rate: 7.2% (tied – 10th highest)
• Top corporate income tax rate: 8.9% (7th highest)

31. Mississippi
• State sales tax rate: 7.0% (tied – 2nd highest)
• Property taxes paid as pct. of home value: 0.6% (12th lowest)
• Unemployment rate: 4.8% (6th highest)
• Top individual income tax rate: 5.0% (tied – 19th lowest)
• Top corporate income tax rate: 5.0% (tied – 12th lowest)

32. Wisconsin
• State sales tax rate: 5.0% (tied – 18th lowest)
• Property taxes paid as pct. of home value: 1.6% (6th highest)
• Unemployment rate: 2.9% (tied – 10th lowest)
• Top individual income tax rate: 7.7% (tied – 9th highest)
• Top corporate income tax rate: 7.9% (14th highest)

33. Georgia
• State sales tax rate: 4.0% (tied – 8th lowest)
• Property taxes paid as pct. of home value: 0.9% (25th lowest)
• Unemployment rate: 3.9% (tied – 17th highest)
• Top individual income tax rate: 5.8% (tied – 21st highest)
• Top corporate income tax rate: 5.8% (tied – 16th lowest)

34. Pennsylvania
• State sales tax rate: 6.0% (tied – 16th highest)
• Property taxes paid as pct. of home value: 1.5% (10th highest)
• Unemployment rate: 4.0% (tied – 14th highest)
• Top individual income tax rate: 3.1% (tied – 10th lowest)
• Top corporate income tax rate: 10.0% (3rd highest)

35. South Carolina
• State sales tax rate: 6.0% (tied – 16th highest)
• Property taxes paid as pct. of home value: 0.5% (4th lowest)
• Unemployment rate: 3.2% (tied – 16th lowest)
• Top individual income tax rate: 7.0% (tied – 11th highest)
• Top corporate income tax rate: 5.0% (tied – 12th lowest)

36. Illinois
• State sales tax rate: 6.3% (tied – 13th highest)
• Property taxes paid as pct. of home value: 2.0% (2nd highest)
• Unemployment rate: 4.3% (tied – 10th highest)
• Top individual income tax rate: 5.0% (tied – 16th lowest)
• Top corporate income tax rate: 9.5% (5th highest)

37. Rhode Island
• State sales tax rate: 7.0% (tied – 2nd highest)
• Property taxes paid as pct. of home value: 1.4% (12th highest)
• Unemployment rate: 3.9% (tied – 17th highest)
• Top individual income tax rate: 6.0% (20th highest)
• Top corporate income tax rate: 7.0% (tied – 19th highest)

38. Hawaii
• State sales tax rate: 4.0% (tied – 8th lowest)
• Property taxes paid as pct. of home value: 0.3% (the lowest)
• Unemployment rate: 2.7% (5th lowest)
• Top individual income tax rate: 11.0% (2nd highest)
• Top corporate income tax rate: 6.4% (23rd lowest)

39. Alabama
• State sales tax rate: 4.0% (tied – 8th lowest)
• Property taxes paid as pct. of home value: 0.4% (2nd lowest)
• Unemployment rate: 3.7% (tied – 25th lowest)
• Top individual income tax rate: 5.0% (tied – 19th lowest)
• Top corporate income tax rate: 6.5% (tied – 23rd highest)

40. Maryland
• State sales tax rate: 6.0% (tied – 16th highest)
• Property taxes paid as pct. of home value: 1.0% (21st highest)
• Unemployment rate: 3.7% (tied – 25th lowest)
• Top individual income tax rate: 5.8% (tied – 21st highest)
• Top corporate income tax rate: 8.3% (11th highest)

41. Vermont
• State sales tax rate: 6.0% (tied – 16th highest)
• Property taxes paid as pct. of home value: 1.8% (4th highest)
• Unemployment rate: 2.4% (tied – 4th lowest)
• Top individual income tax rate: 8.8% (7th highest)
• Top corporate income tax rate: 8.5% (10th highest)

42. Ohio
• State sales tax rate: 5.8% (25th highest)
• Property taxes paid as pct. of home value: 1.5% (9th highest)
• Unemployment rate: 4.6% (7th highest)
• Top individual income tax rate: 5.0% (tied – 18th lowest)
• Top corporate income tax rate: 0.0% (tied – the lowest)

43. Minnesota
• State sales tax rate: 6.9% (6th highest)
• Property taxes paid as pct. of home value: 1.1% (19th highest)
• Unemployment rate: 3.1% (13th lowest)
• Top individual income tax rate: 9.9% (5th highest)
• Top corporate income tax rate: 9.8% (4th highest)

44. Louisiana
• State sales tax rate: 4.5% (14th lowest)
• Property taxes paid as pct. of home value: 0.5% (3rd lowest)
• Unemployment rate: 4.9% (5th highest)
• Top individual income tax rate: 6.0% (tied – 19th highest)
• Top corporate income tax rate: 8.0% (tied – 12th highest)

45. Iowa
• State sales tax rate: 6.0% (tied – 16th highest)
• Property taxes paid as pct. of home value: 1.5% (11th highest)
• Unemployment rate: 2.4% (tied – 4th lowest)
• Top individual income tax rate: 8.5% (tied – 8th highest)
• Top corporate income tax rate: 12.0% (the highest)

46. Arkansas
• State sales tax rate: 6.5% (tied – 9th highest)
• Property taxes paid as pct. of home value: 0.6% (13th lowest)
• Unemployment rate: 3.8% (tied – 22nd highest)
• Top individual income tax rate: 6.9% (tied – 14th highest)
• Top corporate income tax rate: 6.5% (tied – 23rd highest)

47. Connecticut
• State sales tax rate: 6.4% (12th highest)
• Property taxes paid as pct. of home value: 1.7% (5th highest)
• Unemployment rate: 3.8% (tied – 22nd highest)
• Top individual income tax rate: 7.0% (tied – 12th highest)
• Top corporate income tax rate: 7.5% (18th highest)

48. New York
• State sales tax rate: 4.0% (tied – 8th lowest)
• Property taxes paid as pct. of home value: 1.3% (14th highest)
• Unemployment rate: 3.9% (tied – 17th highest)
• Top individual income tax rate: 8.8% (6th highest)
• Top corporate income tax rate: 6.5% (tied – 23rd highest)

49. California
• State sales tax rate: 7.3% (the highest)
• Property taxes paid as pct. of home value: 0.7% (16th lowest)
• Unemployment rate: 4.2% (12th highest)
• Top individual income tax rate: 13.3% (tied – the highest)
• Top corporate income tax rate: 8.8% (8th highest)

50. New Jersey
• State sales tax rate: 6.6% (8th highest)
• Property taxes paid as pct. of home value: 2.1% (the highest)
• Unemployment rate: 4.0% (tied – 14th highest)
• Top individual income tax rate: 10.8% (3rd highest)
• Top corporate income tax rate: 11.5% (2nd highest)

24/7 Wall Street is a USA TODAY content partner offering financial news and commentary. Its content is produced independently of USA TODAY.

 

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