The Tax Foundation has released its annual State Business Tax Climate Index:

The methodology of the State Business Tax Climate Index is centered on the idea of tax competition, and each state’s final score depends on a comparison with the other 49 states. The overall index is composed of five specific indexes devoted to major features of a state’s tax system:

• the state’s principal business tax, usually the corporate income tax
• the individual income tax
• the sales or gross receipts tax
• the unemployment insurance tax
• the state’s system for taxing assets, principally the property tax

These five component indexes are themselves composed of several sub-indexes, and a total of 123 variables are taken into account in each state’s tax system.

Here are the 10 states with the best business tax climate:

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

Here are the 10 states with the worst business tax climate:

41. Arkansas
42. Iowa
43. Nebraska
44. Kentucky
45. Maine
46. Vermont
47. Ohio
48. Rhode Island
49. New Jersey
50. New York

See:

• Press Release
• Executive Summary
• Report