If you are thinking about starting a new business in one of the states in the US, then this list of 10 best states for business taxes could be very useful to you. When it comes to business, taxes are something that can’t be avoided. Or, can it? Did you know that there are states in the US that don’t have a major tax? While every state has unemployment insurance taxes and property taxes, there are states that don’t have sales taxes, or corporate taxes. Naturally, some of those states are indeed among the top 10 best states for business taxes, but they are not forming this list completely. People usually assume that there is no significant difference in tax systems between the states, but that’s a false assumption that could cost them more tax money. If you have a chance to choose a state in which you wish to start a new business or to transfer the old one to, then you should carefully study what every state has to offer. States that have the lowest business taxes, ones that are listed here, do not necessarily need to be your best choice. Choosing an ideal state for your business (if there is such a thing as an ideal state for any business) should be taken as a serious quest. Every business is different, and its growth and success depend on many factors, business tax is only one of them. And if you think that only large businesses have an opportunity to be truly profitable, you’d better think again. There are so many small profitable businesses that make their owners pretty happy. If you are curious to find out more about those small but money-making businesses, look at our list of the 12 most profitable small businesses. Also don’t forget to check out our article about the 10 most beautiful states in the US.
Even though business tax is not the only factor worth considering when choosing a state to start your business, it is an important one. That’s why, every year, the Tax Foundation analyzes business tax climate in all 50 states and ranks them all by a variety of “tax categories”. Those tax categories include corporate tax, individual income tax, sales tax, unemployment tax, and property tax. Every state is ranked in each of the categories separately, and also overall. As a result, we have information about the worst states for business taxes, too, and they are:
1. New Jersey
2. New York
6. Rhode Island
If you have considered one of these states for starting your business, maybe you should think through again, if taxes are your major concern. Before we finally give you the list of the best states for business taxes according to the Tax Foundation’s 2015 State Business Tax Climate Index, let us just say which tax category weighed the most in the overall ranking – individual income taxes. And that’s why we will also provide you with information about each state ranking in every above-mentioned category.
But, before you jump to the conclusion which state is the best for your business, be aware of the fact that the ranking changes each year because states change their tax structure. If you are curious to find out which states are persistently among the best ones, then compare tax climate indexes from previous years. For now, we are only providing you with the list of 10 best states for business taxes in 2015:
Corporate tax rank: 39
Individual income tax rank: 6
Sales tax rank: 36
Unemployment insurance tax rank: 15
Property tax rank: 36