The Best and Worst tax states in the country

Wyoming has the best tax system, and New Jersey the worst, for “business friendliness,” reports the Tax Foundation’s 2009 State Business Tax Climate Index, a ranking of the 50 state tax systems that provides a roadmap for state lawmakers concerned with keeping their states tax-competitive.

The index ranks states based on corporate tax, individual income tax, sales tax, unemployment tax and property tax. The states are scored on these taxes and weighted based on the relative importance or impact of the tax to a business.

Tip: Read the complete 2009 State Business Tax Climate Index at www.taxfoundation.org/files/bp58.pdf.

Best States for Business                        Worst States for Business
1    Wyoming                                              41    Minnesota
2    South Dakota                                       42    Nebraska
3    Nevada                                                43    Vermont
4    Alaska                                                  44    Iowa
5    Florida                                                 45    Maryland
6    Montana                                              46    Rhode Island
7    Texas                                                  47    Ohio
8    New Hampshire                                    48    California
9    Oregon                                                49    New York
10  Delaware                                             50    New Jersey