Publications
State Business Tax Climate Index
Taxes matter to business. They affect location decisions, job creation and retention, international competitiveness, and the long-term health of a state’s economy. The Tax Foundation’s annual State Business Tax Climate Index was designed to measure the “tax-friendliness” to business of each state’s tax system. The most competitive tax systems are typically found in states that raise sufficient tax revenue with economically neutral and simple tax systems. The least competitive are typically found in states with complex, multi-rate corporate and individual tax codes; above-average sales tax rates that exempt few business-to-business transactions; high state tax collections; and few institutional restraints on the level of taxation or spending.
Additional questions about business tax climates? Contact us at (202) 464-6200.
Publications from The Tax Foundation
- 2012 State Business Tax Climate Index, by Mark Robyn, January 25, 2012
- Facts & Figures Handbook: How Does Your State Compare?, edited by Mark Robyn, February 28, 2011
- Recent State Tax Reforms in the United States and Opportunities for California at a Time of Fiscal Challenge (Testimony before California's Select Committee on Recovery, Reform, and Realignment), by Joseph Henchman, February 2, 2011
- Illinois Approves Sharp Income Tax Increase, Fourth-Highest Corporate Tax Rate, by Joseph Henchman and Kail Padgitt, January 13, 2011
- Illinois Considers Sharp Income Tax Increase, Highest Corporate Tax Rate, by Joseph Henchman and Kail Padgitt, January 7, 2011
- Rhode Island Officials Consider Income Tax Reform, by Joseph Henchman and Kail Padgitt, June 2, 2010
- Wishful Thinking About Tax Burdens in Ohio, by Mark Robyn and Rob Shrum, April 7, 2010
- Illinois Should Respond to Recession by Broadening Tax Bases and Spending Frugally, Not by Raising the Personal Income Tax Rate, by Justin Higginbottom, March 11, 2010
- Slideshow: Taxes, Competitiveness & the Idaho Business Climate, March 2, 2010
- Georgia Should Respond to Recession with Tax Reform, Not Tax Gimmicks, by Justin Higginbottom, February 19, 2010
- Slideshow: Ohio's Tax Climate, January 7, 2010
- Oregon Referendum Could Reinstate Higher Income Tax Rates, by Joseph Henchman and Kail Padgitt, January 7, 2010
- Ohio's Poor Tax Climate at the Heart of the State's Economic and Fiscal Woes, by Scott A. Hodge, January 7, 2010
- Video: Pennsylvania Tax System to Blame for Job Losses, Out-Migration, by Scott A. Hodge, December 3, 2009
- Pennsylvania’s Tax System--Not Weak Economy--Responsible for Job Losses and Out-Migration, by Scott A. Hodge, December 2, 2009
- Testimony to Vermont Blue Ribbon Tax Structure Commission: Options for Improving Vermont’s Tax Competitiveness, by William Ahern, November 17, 2009
- Taxes, Competitiveness and the New Hampshire Business Climate (Testimony before the New Hampshire Legislature), by Scott A. Hodge, October 21, 2009
- Poor State Fiscal Policy: North Carolina Passes Tax Breaks to Attract Apple, June 3, 2009
- Economic Incidence: Consumers May Not Remit Ohio’s Tax on Grocery Sales, But They Pay It, by Joseph Henchman, Maurice Thompson and Justin Burrows, May 26, 2009
- North Dakota's Measure 2: How Would Rate Cuts Affect the Peace Garden State's Competitiveness?, by Joseph Henchman, October 17, 2008
- County and City Income Taxes Clustered in States with Poor Tax Climates, by Joseph Henchman, July 11, 2008
- Governor O'Malley's Tax Plan Puts Maryland at Risk in Regional Tax Competition (text of speech), by Curtis S. Dubay, October 26, 2007
- Governor O'Malley's Tax Plan Puts Maryland at Risk in Regional Tax Competition, by Curtis S. Dubay, October 26, 2007
- Corporate Tax Reform Will Enhance Kansas Competitiveness, by Chris Atkins and Jonathan Williams, February 21, 2007
- What West Virginia Needs to Do in Order to Compete in the 21st Century, by Curtis S. Dubay, December 11, 2006
- Improving the Connecticut Business Tax Climate, by Chris Atkins and Curtis S. Dubay, July 1, 2006
- Rebuilding Mississippi's Business Tax Climate, by Chris Atkins and Jonathan Williams, October 24, 2005
- Michigan "Index Analysis": Elimination of Michigan SBT, by Chris Atkins and Curtis S. Dubay, May 23, 2005
- Indiana "Index Analysis": Impact of Gov. Daniels' Proposed Income Tax Surcharge, by Chris Atkins and Curtis S. Dubay, February 15, 2005
- Illinois "Index Analysis": The Potential Impact of HB 750, by Chris Atkins and Curtis S. Dubay, February 7, 2005
- Statement Before the Senate Finance Committee of the Pennsylvania State Senate On Pennsylvania's Business Tax Structure, by Thomas O. Armstrong, Ph.D., May 11, 2004
- Factors Affecting Industrial Location: A Bibliography, by TF Staff, December 1, 1956