When it comes to personal taxes, costs vary widely from state to state and city to city. The same can be said for businesses. States have varying levels of business friendliness based on taxes and other considerations. Here are the best states for business taxes going forward.
According to The Tax Foundation, the best states for businesses taxes might surprise you.
- South Dakota
- New Hampshire
Why These States?
There are many reasons why these ten states stand out. The absence of a major tax is one such benefit that most of them share. Major taxes include corporate income tax, individual income tax, or sales tax. The above states have a mixture of tax environments. While none is without all three, several are missing one or more of the major taxes.
This, overall, creates a more welcoming environment for businesses and often, residents as well.
What About The Bottom 10?
If there’s a top 10, there must be a bottom 10 as well. According to the Tax Foundation, here are the states
- New York
- New Jersey
Like the top 10, the reverse is true of these states. Far from the best state for business taxes, many of the states on this list would be classified as “high tax” states. New York, California, and New Jersey in particular.
If you’re looking to start a business, your location matters greatly. The tax environment you’re placing yourself into can go a long way towards making or breaking your business. If the decision can be made, choosing one of the best states for business taxes seems like a solid decision.
On a personal note, however, taxes also matter at the individual level. Location matters there as well. That’s where City vs City can help. City vs City is a powerful cost of living calculator which compares your current living expenses with another city of your choosing.
City vs City examines state and local taxes, housing costs, transportation costs, and more. As a result, you’ll see a side by side breakdown between your two cities. You’ll see which cities present the best cost of living condition for you!
If you’re thinking of moving, don’t make a move without downloading City vs City first.