The Tax Foundation has released its annual ranking of states and how competitive their business tax codes are.
The think tank’s 13th annual State Business Tax Climate Index examines over 100 different variables in five tax categories: corporate, individual income, sales, property, and unemployment insurance.
Wyoming again ranked in first place with the most competitive tax code in the U.S., while New Jersey kept its longstanding position at the bottom of the rankings.
This year’s most competitive states ranked in the following order:
2. South Dakota
7. New Hampshire
This year’s least competitive states include:
44. Rhode Island
47. Vermont and D.C.
49. New York
50. New Jersey
The study penalizes states if they have overly complex and burdensome tax codes for businesses and ranks them higher if their tax codes are neutral and do not distort business decisions. A state’s ranking can also depend upon reforms made in other states.