Report: Wyoming Has Best Tax Climate In U.S.
Wyoming has the best tax climate in the U.S. according to the latest edition of the State Business Tax Climate Index, released this morning by the Tax Foundation. The Cowboy State’s rank remains unchanged since last October.
The Index, now in its 11th edition, measures how well structured each state’s code is by analyzing over 100 tax variables in five different categories: corporate, individual income, sales, property, and unemployment insurance taxes. States are punished for overly complex, burdensome, and economically harmful tax codes but are rewarded for transparent and neutral tax codes that do not distort business decisions. A state’s ranking can rise or fall significantly not only because of its own actions, but also because of changes or reforms made in other states.
The breakdown of Wyoming’s ranking this year is as follows (1st is best, 50th is worst):
Wyoming’s overall State Business Tax Climate ranking: 1st
Corporate tax structure: 1st
Individual income tax structure: 1st
Sales tax structure: 13th
Property tax structure: 35th
Unemployment insurance tax structure: 34th
The report’s key findings include:
The 10 most competitive states are: Wyoming (#1), South Dakota (#2), Nevada (#3), Alaska (#4), Florida (#5), Montana (#6), New Hampshire (#7), Indiana (#8), Utah (#9) and Texas (#10).
The 10 least competitive states are: New Jersey (#50), New York (#49), California (#48), Minnesota (#47), Vermont (#46), Rhode Island (#45), Ohio (#44), Wisconsin (#43), Connecticut (#42), and Iowa (#41).
Though the Tax Foundation describes itself as non-partisan, it is usually alligned with conservative groups and causes.