Best states for taxes 2011
There are 10 states that do not impose one major tax, either the business tax, personal tax or sales tax. Therefore, these states rank high in the best states for taxes in a state tax climate study for 2011.
"The absence of a major tax is a dominant factor" as to why these states rank high in the list, according to the Tax Foundation, the authors of the study.
The Tax Foundation's list is part of their 2011 State Business Tax Climate Index.
South Dakota does not impose personal income tax or corporate tax, while in the other categories (sales, property, unemployment insurance taxes) it ranks in the middle 3rd. These factors helped South Dakota secure the top spot in best states for taxes.
The 10 best states for taxes are:
|1. South Dakota||6. Montana|
|2. Alaska||7. New Hampshire|
|3. Wyoming||8. Delaware|
|4. Nevada||9. Utah|
|5. Florida||10. Indiana|
There is very little change from last year's list (2010). South Dakota remains on top, while Alaska and Wyoming switch places. Indiana moves up to the top 10 this year, while Washington is dropped from the top 10.
South Dakota, Wyoming and Nevada have no business or personal tax, Alaska has no personal tax or state-level sales tax, Florida and Texas have no personal income tax, while New Hampshire, Delaware, Oregon and Montana have no sales tax.
The 10 best states for taxes and their tax rates
- South Dakota no corporate tax, no individual income tax, state sales tax 4%.
- Alaska top corporate tax 9.4%, no individual income tax, no state sales tax.
- Wyoming no corporate tax, no individual income tax, state sales tax 4%.
- Nevada no corporate tax, no individual income tax, state sales tax 6.85%.
- Florida corporate tax 5,5%, no individual income tax, state sales tax 6%.
- Montana corporate tax 6.75%, top individual income tax 6.9%, no state sales tax.
- New Hampshire corporate tax 8.5%, individual income tax 5%, no state sales tax.
- Delaware corporate tax 8.7%, top individual income tax 6.95%, no state sales tax.
- Utah corporate tax 5%, individual income tax 5%, state sales tax 5.95%.
- Indiana 8.5% corporate tax, 3.4%l income tax, state sales tax 7%.
(Please check with appropriate state tax authority for current tax rates)