Best States for Small Business Taxes

In the Land of the Free, all states are not created equal when it comes to tax systems. The Small Business and Entrepreneurship Council has compiled a list of the best (and worst) states for small biz taxes.

Tax by definition

The list is based on 18 factors:

  1. The state’s highest personal income tax rate
  2. The state’s highest individual capital gains tax rate
  3. The state’s highest corporate income tax rate
  4. The state’s highest corporate capital gains tax rate
  5. Any additional income tax  on S-Corporations
  6. Whether  or not the state imposes alternative minimum tax on individuals
  7. Whether or not the state imposes alternative minimum tax on corporations
  8. Whether or not the state’s personal income tax brackets are indexed for inflation
  9. Its property taxes
  10. Its consumption-based taxes, such as sales, gross receipts and excise taxes
  11. Whether or not the state imposes a death tax
  12. Its unemployment taxes
  13. Whether or not the state has a tax limitation mechanism
  14. Whether or not the state imposes an Internet access tax
  15. Whether or not the state imposes taxes on Amazon.com purchases
  16. Its gas tax
  17. Its diesel tax
  18. Its wireless tax

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