Special Report

Most and Least Tax Friendly States for Business

E-commerce giant Amazon announced in February it was withdrawing from its plan to build its second headquarters in New York City’s Long Island City. The planned addition of HQ-2 in the Queens neighborhood had been highly controversial, particularly for New Yorkers outraged by the nearly $3 billion in tax breaks and subsidies Amazon was going to receive. The move would have made Amazon one of the largest employers in the state.

Since Amazon announced in September 2017 its plans to build a second headquarters, state and local governments nationwide aggressively competed by offering the online retailer a variety of tax break schemes. The flurry of proposals from more than 200 cities put the spotlight on state business taxes and how they vary across the country.

State tax codes are complex. Several factors, in addition to the corporate tax rate, determine how business-friendly a state is — and how competitive its business environment is. Every year, the Tax Foundation, a think tank focused on tax policy research and education, ranks each state’s business tax climate based on more than 100 variables.

Based on the Tax Foundation’s 2019 State Business Tax Climate Index, 24/7 Wall St. listed the states with the best and worst business tax environments.

Click here to see the most and least tax friendly states for business


Based on The Tax Foundation’s 2019 State Business Tax Climate Index, 24/7 Wall St. reviewed the states with the best and worst business tax environments. Property tax collections per capita figures are from this report and are for the calendar year 2017. The highest tier in each state’s individual and corporate income tax structures as well as state sales tax rates were obtained from The Tax Foundation’s 2019 Facts and Figures report and are as of January 2019. Seasonally-adjusted unemployment rates are for February 2019 from the Bureau of Labor Statistics.

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