Wyoming #1 best state for lowest taxes new report shows

Wyoming #1 best state for lowest taxes new report shows

The Tax Foundation’s State Business Tax Climate Index enables business leaders, government policymakers, and taxpayers to gauge how their states’ tax systems compare. While there are many ways to show how much is collected in taxes by state governments, the Index is designed to show how well states structure their tax systems, and provides a roadmap for improvement. The 10 best states in this year’s Index are:

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

The absence of a major tax is a common factor among many of the top ten states. Property taxes and unemployment insurance taxes are levied in every state, but there are several states that do without one or more of the major taxes: the corporate income tax, the individual income tax, or the sales tax. Wyoming, Nevada, and South Dakota have no corporate or individual income tax (though Nevada imposes gross receipts taxes); Alaska has no individual income or state-level sales tax; Florida has no individual income tax; and New Hampshire, Montana, and Oregon have no sales tax. This does not mean, however, that a state cannot rank in the top ten while still levying all the major taxes. Indiana and Utah, for example, levy all of the major tax types, but do so with low rates on broad bases.

Taxes matter to business. Business taxes affect business decisions, job creation and retention, plant location, competitiveness, the transparency of the tax system, and the long-term health of a state’s economy. Most importantly, taxes diminish profits. If taxes take a larger portion of profits, that cost is passed along to either consumers (through higher prices), employees (through lower wages or fewer jobs), or shareholders (through lower dividends or share value), or some combination of the above. Thus, a state with lower tax costs will be more attractive to business investment and more likely to experience economic growth.

Here is the link for more information and a downloadable chart:

https://taxfoundation.org/publications/state-business-tax-climate-index/

Wyoming’s business taxes make it a perfect place for new businesses and continuations. Check out the rest of our site to learn how we can help you take advantage of the lowest state taxes in the country by establishing or moving your company to Wyoming.

https://wyomingcompany.com