Planning Briefs

Which States Are The Most Friendly To Businesses?

Published Tuesday, October 11, 2011 at: 7:00 AM EDT

Never mind the weather. It's the business climate in the state where you live and work that can have the most impact on your company's fortunes.

The Tax Foundation, a taxpayer advocacy group, recently issued its 2017 State Business Tax Climate Index (SBTCI). This annual study enables legislators, businesses, and individuals to compare their state tax systems to those in other states. Policymakers may use the SBTCI to pinpoint changes for improving the relative standing of their home states.

The SBTCI ranks states based on five taxes: corporate, individual income, sales, unemployment insurance, and property. Scores are based on the relative importance or impact of the tax to the business community.

According to the SBTCI, here are the top 10 states for business activity.

1. Wyoming
2. South Dakota
3. Alaska
4. Florida
5. Nevada
6. Montana
7. New Hampshire
8. Indiana
9. Utah
10. Oregon

This ranking is the same as the prior year except that Oregon replaced Texas in the tenth spot. It's noteworthy that several of these states don't have one or more of the major taxes.

And the least tax-friendly states? Bringing up the rear are perennial low finishers California (48th), New York (49th) and New Jersey (50th). To see the complete list, visit https://files.taxfoundation.org/20170302120920/TF-SBTCI-2017-Final1.pdf.

This article was written by a professional financial journalist for Preferred NY Financial Group,LLC and is not intended as legal or investment advice.

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