Yesterday, the Tax Foundation released its list of the business tax climate in the 50 states. Not much has changed, and for those in New York, New Jersey, and California wondering why businesses are moving to Florida and Nevada, you just need to look in the mirror. The top 10 states are:
- Wyoming
- South Dakota
- Alaska
- Florida
- Montana
- New Hampshire
- Nevada
- Tennessee
- Indiana
- Utah
There’s also a bottom 10:
41. Hawaii
42. Louisiana
43. Vermont
44. Arkansas
45. Minnesota
46. Maryland
47. Connecticut
48. California
49. New York
50. New Jersey
The best states either lack a major tax or levy all the major tax types with low rates on broad bases. Meanwhile, the worst states share, “complex, nonneutral taxes with comparatively high rates.” My state, Nevada, ranks 7th with low individual and property taxes but high sales and unemployment insurance taxes (corporate tax is ranked in the middle, 25th). My former state, California, ranks in the bottom four in corporate taxes, individual taxes, and sales tax, in the middle for unemployment insurance, and above average for property tax. The worst state, New Jersey, ranks in the bottom ten in all taxes except unemployment insurance (where it ranks below average, 32nd).
Yes, taxes aren’t everything but they’re a huge reason why my business left the Golden State and moved to the Silver State.
