To determine the most and least tax-friendly states for business, 24/7 Wall St. reviewed data from the Tax Foundation’s 2022 State Business Tax Climate Index. States were ranked based on their State Business Tax Climate Index score, a composite of five factors measuring individual income tax, sales tax, corporate income tax, property tax, and unemployment insurance tax.
The Tax Foundation weighted the individual income tax component at 31.2%, the sales tax at 23.7%, corporate tax at 20.9%, property tax at 14.4%, and unemployment insurance tax at 9.8%.
Data on the individual income tax rate at the highest income bracket and the corporate income tax rate at the highest income bracket came from the Tax Foundation and figures are current as of Jan. 1, 2022. Data on the combined state sales tax rate and the average of all local tax rates within a state came from the Tax Foundation and figures are current as of Jan. 1, 2022.
Sponsored: Tips for Investing
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.