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The Best (And Worst) States For Taxes

In the current tough economic environment, the last thing a solution provider needs is big tax bills. As part of the Best States 2020 project, here’s a look at the best – and the worst – states for burdensome taxes.

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A Taxing Situation

In the midst of a global pandemic and national recession, where financial resources may be scarce and cash flow a challenge, the last thing a business wants to do is get hit with big tax bills: corporate income taxes, sales taxes, property taxes and unemployment insurance taxes.

As part of the 2020 Best States Solution Providers, CRN looked at corporate income tax rates, state and local sales taxes, property taxes and unemployment insurance taxes levied in each state. (Note: While we provide individual income tax rates in the following slides, personal income taxes were actually considered as part of the “Personal cost of living/Quality of life” criteria in calculating states’ overall Best States rankings and did not figure in their tax rankings.)

Most of the data, including actual tax rates, rankings and the Business Tax Climate Index, came from the Tax Foundation. The Fiscal Stability ranking came from the U.S. News Best States Rankings.

For criteria that’s ranked, the lower the number, the lower the tax burden.

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