Find Out Where Your State Ranks In Terms Of Tax Competitiveness
Listed in order, the 10 best states in the 2025 Index are Wyoming, South Dakota, Alaska, Florida, Montana, New Hampshire, Texas, Tennessee, North Dakota, and Indiana. The Tax Foundation noted the absence of a major tax is a common factor among many of the top 10 states. Property taxes and unemployment insurance taxes are levied in every state, but there several states on the list do without one or more of the major taxes: a corporate income tax, a individual income tax, or a sales tax. South Dakota and Wyoming have no corporate or individual income tax, for example, while Alaska has no individual income or state-level sales tax. Florida and Texas have no individual income tax while in New Hampshire and Montana there is no sales tax. New Hampshire also only imposes a small tax on interest and dividend income.