I was reading about tax friendly states and, being a Californian, I immediately went to the bottom to see where California stands. Go figure, we are the 3rd least tax friendly state for business. We have what has been said to be the worst individual income tax policy in the nation (the Tax Foundation). California also has the highest state sales tax rate and top income tax rate in the USA.So how do other states measure? Here is a concise top 10 list for each category!
The Most Tax Friendly

  • 10 – Indiana
  • 9 – Utah
  • 8 – New Hampshire
  • 7 – Montana
  • 6 – Washington state
  • 5 – Florida
  • 4 – Alaska
  • 3 – Nevada
  • 2 – South Dakota
  • 1 – Wyoming

The Least Tax Friendly

  • 10 – Maryland
  • 9 – Connecticut
  • 8 – Wisconsin
  • 7 – North Carolina
  • 6 – Vermont
  • 5 – Rhode Island
  • 4 – Minnesota
  • 3 – California
  • 2 – New Jersey
  • 1 – New York

On most friendly I expected Montana, Florida, Alaska, and Nevada to pretty much be at the top. On the least friendly I knew California and New York would be on the list, but Wisconsin, North Carolina, Rhode Island, and Minnesota really surprised me. When you read the title of this post, did you immediately think of the states on this list? Did any surprise you?

The Top 10 Most and Least Tax Friendly States for Business