The 10 Best States for Taxes in 2015
State income tax: none
State sales tax: 6.25 percent
Per capita property tax: $1,555
Texas makes it into the top 10 because it lacks a state income tax. It doesn’t get a perfect score for income tax, however, because it levies gross receipts taxes on LLCs and S corporations, which are generally taxed at the individual level. It doesn’t rank in the top half of states for its corporate, sales or property taxes.
Flickr/Knowsphotos
State income tax: 5 percent
State sales tax: 5.95 percent
Per capita property tax: $912
Utah levies all major tax types, but has low rates for property and sales taxes. It also earns points from the Tax Foundation for having a low corporate and individual income tax rates of 5 percent.
Flickr/Zach Dischner
State income tax: 3.4 percent
State sales tax: 7 percent
Per capita property tax: $971
Indiana makes it into the top 10, but still levies all major taxes. Its per capita property tax and income tax are both low compared to other states. Its 7 percent sales tax is scheduled to be reduced to 4.9 percent by 2021 and its income tax will fall to 3.23 percent by 2017, both of which will improve its score in the years to come.
Flickr/David Cornwell
State income tax: 5 percent (interest and dividends only)
State sales tax: none
Per capita property tax: $2,518
What New Hampshire lacks in sales tax it makes up for in corporate taxes. The Tax Foundation ranks it 48th of all states on that measure alone. Its low income tax rate — only dividends and interest are taxed on individuals — keeps it high in the overall state rankings.
Flickr/Chris Ford
State income tax: 6.9 percent
State sales tax: none
Per capita property tax: $1,347
Montana residents benefit from no sales tax. But the top state income tax bracket of 6.9 percent and top corporate rate of 6.75 percent rank toward the middle of the 50 states, at 20th and 18th respectively. Plus, the state imposes taxes on gas and cigarettes.
Flickr/Mark Stephens
State income tax: none
State sales tax: 6 percent
Per capita property tax: $1,369
Florida doesn’t levy an income tax, and its sales tax ranks 12th lowest in the country. Plus, it ranks in the top third of states for corporate taxes. Its alternative minimum tax on companies doesn’t help it ranking, though.
Flickr/Joe Penniston
State income tax: none
State sales tax: none
Per capita property tax: $2,077
With no income or state sales tax, Alaska seems like it would rank No. 1. But the Tax Foundation dings the state for its heavy corporate tax burden, which includes a 9.4 percent top corporate income tax rate. Plus, some local governments charge sales tax.
Flickr/jjjj56cp
State income tax: none
State sales tax: 6.85 percent
Per capita property tax: $1,109
Like Nos. 1 and 2 on the list, Nevada has no corporate or individual income tax. Its high sales tax nudges down its ranking, as does its complex formula for charging businesses unemployment insurance taxes.
Flickr/Justin Brown
State income tax: none
State sales tax: 4 percent
Per capita property tax: $1,196
South Dakota loses out on the top spot because the Tax Foundation finds some aspects of its tax structure negative to businesses and economic growth. Still, it has no individual or corporate income taxes, which is pretty tough for other states to beat.
Flickr/CameliaTWU
State income tax: none
State sales tax: 4 percent
Per capita property tax: $2,173
While property taxes are pretty steep in Wyoming, the state takes the top spot because it doesn’t have individual income or corporate taxes. Its 4 percent sales tax is also on the low side. For overall business climate, it has ranked No. 1 since 2012.
Flickr/Diana Robinson