In a tight race for dead last, New York topped New Jersey as the state with the worst business tax climate in 2013 in an annual index of state tax systems.
Wyoming, which levies no corporate or individual income tax, had the best tax climate for businesses last year, according to the Tax Foundation, a nonpartisan tax research group based in Washington, D.C. The index ranks the 50 states by corporate tax, individual income tax, sales tax, unemployment insurance tax and property tax.
New York ranked 49th in individual income tax; 45th in both unemployment insurance and property taxes; 38th in sales tax and 25th in corporate tax to descend to its overall bottom ranking.
Though New Jersey had a better overall rank at 49, the Garden State and the Empire State are in “a virtual tie” for last place this year, the Tax Foundation reported.
New Jersey ranked 50th in property tax; 48th in individual income tax; 46th in sales tax; 41st in corporate tax and 32nd in unemployment insurance tax.
Delaware has the most onerous corporate tax, the Tax Foundation found, while California has the highest individual income tax. Louisiana ranked 50th in sales tax, while Rhode Island”™s unemployment insurance tax is the least favorable for businesses.
“The evidence shows that states with the best tax systems will be the most competitive in attracting new businesses and most effective at generating economic and employment growth,” according to the recent report.
Following Wyoming among the top 10 states with the best business tax climate were South Dakota, Nevada, Alaska, Florida, Washington, Montana, New Hampshire, Utah and Indiana.
Ranked above New York and New Jersey in the bottom 10 were California at 48th, Minnesota, Rhode Island, Vermont, North Carolina, Wisconsin, Connecticut and Maryland.
