Special Report

Most and Least Tax Friendly States for Business

Source: DenisTangneyJr / iStock via Getty Images

10. Indiana
> Tax-friendliness score: 5.64/10
> Top individual income tax rate: 3.2% (10th lowest)
> Top corporate income tax rate: 4.9% (13th lowest)
> State & avg. local sales tax rate: 7.0% (24th highest)

Source: Sean Pavone / iStock via Getty Images

9. Utah
> Tax-friendliness score: 5.64/10
> Top individual income tax rate: 5.0% (18th lowest)
> Top corporate income tax rate: 5.0% (14th lowest)
> State & avg. local sales tax rate: 7.2% (21st highest)

Source: Kruck20 / iStock via Getty Images

8. Tennessee
> Tax-friendliness score: 5.68/10
> Top individual income tax rate: 0.0% (7th lowest)
> Top corporate income tax rate: 6.5% (23rd highest)
> State & avg. local sales tax rate: 9.6% (the highest)

Source: photoquest7 / iStock via Getty Images

7. Nevada
> Tax-friendliness score: 5.95/10
> Top individual income tax rate: 0.0% (7th lowest)
> Top corporate income tax rate: 0.0% (6th lowest)
> State & avg. local sales tax rate: 8.2% (13th highest)

Source: Sean Pavone / iStock via Getty Images

6. New Hampshire
> Tax-friendliness score: 6.01/10
> Top individual income tax rate: 5.0% (24th lowest)
> Top corporate income tax rate: 7.6% (14th highest)
> State & avg. local sales tax rate: 0.0% (4th lowest)

Sponsored: Find a Qualified Financial Advisor

Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.