5 States with the Lowest Business Taxes

In this article, we will take a look at the 5 states with the lowest business taxes. If you want to see more states in this selection, go to the 15 States with the Lowest Business Taxes.

5. Montana

2023 State Business Tax Climate Index Score: 6.08

In Montana, individuals are subject to a graduated income tax with rates from 1% to 6.75%. The corporate income tax rate is 6.75%. Montana does not impose a state sales tax, and there are no local sales taxes. Starting in 2024, the individual income tax in Montana will have only two rates: 4.7% (applied to taxable income up to $20,500 for single filers and $41,000 for joint filers) and 6.5% (applied to taxable income above $20,500 for single filers and $41,000 for joint filers).