Special Report

Most and Least Tax Friendly States for Business

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40. Rhode Island
> Tax-friendliness score: 4.56/10
> Top individual income tax rate: 6.0% (19th highest)
> Top corporate income tax rate: 7.0% (20th highest)
> State & avg. local sales tax rate: 7.0% (24th highest)

Source: Sean Pavone / iStock via Getty Images

39. Alabama
> Tax-friendliness score: 4.57/10
> Top individual income tax rate: 5.0% (24th lowest)
> Top corporate income tax rate: 6.5% (23rd highest)
> State & avg. local sales tax rate: 9.2% (5th highest)

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38. Iowa
> Tax-friendliness score: 4.62/10
> Top individual income tax rate: 8.5% (8th highest)
> Top corporate income tax rate: 9.8% (3rd highest)
> State & avg. local sales tax rate: 6.9% (23rd lowest)

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37. Ohio
> Tax-friendliness score: 4.72/10
> Top individual income tax rate: 4.0% (11th lowest)
> Top corporate income tax rate: 0.0% (6th lowest)
> State & avg. local sales tax rate: 7.2% (20th highest)

Source: Sean Pavone / iStock via Getty Images

36. Illinois
> Tax-friendliness score: 4.73/10
> Top individual income tax rate: 5.0% (18th lowest)
> Top corporate income tax rate: 9.5% (5th highest)
> State & avg. local sales tax rate: 8.8% (8th highest)

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