2019 State Business Tax Climate Rankings

US map

The tax climate for businesses varies dramatically depending on where your business is located. State business environments are constantly shifting; some states readily enact changes made at the federal level, while others do not.

Each year the non-profit Tax Foundation organization announces a ranking of tax burdens for businesses. The results of its 2019 ranking are noted here:

State Rank
Alabama 39
Alaska 2
Arizona 27
Arkansas 46
California 49
Colorado 18
Connecticut 47
Delaware 11
Florida 4
Georgia 33
Hawaii 38
Idaho 21
Illinois 36
Indiana 10
Iowa 45
Kansas 28
Kentucky 23
Louisiana 44
Maine 30
Maryland 40
Massachussets 29
Michigan 13
Minnesota 43
Mississippi 31
Missouri 14
Montana 5
Nebraska 24
Nevada 9
New Hampshire 6
New Jersey 50
New Mexico 25
New York 48
North Carolina 12
North Dakota 17
Ohio 12
Oklahoma 26
Oregon 7
Pennsylvania 34
Rhode Island 37
South Carolina 35
South Dakota 3
Tennessee 16
Texas 15
Utah 8
Vermont 41
Virginia 22
Washington 20
West Virginia 19
Wisconsin 32
Wyoming 1

Most of the states in the top 10 are favorable for businesses because they lack one of the common tax revenue sources. Some states lack corporate taxes while others have no sales tax or individual income taxes. Indiana is unique in that it has all the major tax classifications but at lower rates than most other states.

The common themes within the bottom 10 business tax states are high tax rates with complex tax codes. Iowa and Arkansas dropped into the bottom 10 replacing Rhode Island and Maryland this year.

Want to learn more? The full study is available at taxfoundation.org. As always, should you have any questions or concerns regarding your tax situation please feel free to call.


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