State tax survey shows New Jersey as least business friendly

State tax survey shows New Jersey as least business friendly

The tax foundation recently completed a survey ranking states based on the amount of tax that businesses pay. This survey doesn’t take into consideration non tax factors or quality of life factors. Businesses sometimes do take this in consideration and in recent years we have seen many businesses move out of the state of California.

While the New Jersey business taxes are ranked as the worst, New Jersey is closely followed by New York and California. These three states have been had the worst rankings for the last several years according to the tax foundation.

Ranking the various tax systems is quite a challenge because state business taxes vary considerably from state to state.

Rankings (Most Favorable to Least Favorable):

1. South Dakota

2. Wyoming

3. Alaska

4. Nevada

5. Florida

6. Montana

7. New Hampshire

8. Delaware

9. Washington

10. Utah

11. Texas

12. Indiana

13. Colorado

14. Oregon

15. Virginia

16. Missouri

17. Michigan

18. Idaho

19. Alabama

20. Kentucky

21. Mississippi

22. Tennessee

23. New Mexico

24. Hawaii

25. North Dakota

26. South Carolina

27. Pennsylvania

28. Arizona

29. Georgia

30. Illinois

31. Oklahoma

32. Kansas

33. Nebraska

34. Maine

35. Louisiana

36. Massachusetts

37. West Virginia

38. Connecticut

39. North Carolina

40. Arkansas

41. Vermont

42. Wisconsin

43. Minnesota

44. Rhode Island

45. Maryland

46. Iowa

47. Ohio

48. California

49. New York

50. New Jersey

Source:

Tax Foundation Background Paper – Sept 2009

2010 State Business Tax Climate Index

http://www.taxfoundation.org/files/bp59.pdf