South Carolina ranks 4th best on corporate tax study

South Carolina finished fourth in a study by the Tax Foundation examining how well states have structured their corporate income tax systems in 2020.

The state’s ranking remained unchanged from its 2019 score, according to the foundation’s analysis, which is part of a wider study titled “2020 State Business Tax Climate Index.”

The corporate tax ranking measures each state’s primary levy on business activities. Some states take a cut of businesses’ gross receipts, which the Tax Foundation sees as more economically harmful, while the majority of states tax corporate profits – the amount in receipts after most business expenses, including the cost of the items they sell, are deducted.

The analysis also looked at how corporate tax systems deal with net operating losses, whether machinery and equipment purchases can be deducted and whether corporate income tax brackets are indexed for inflation.

How Do States Rate on Corporate Income Taxes?

State 2017 Rank 2018 Rank 2019 Rank 2020 Rank Change from 2019 to 2020
South Dakota 1 1 1 1 0
Wyoming 1 1 1 1 0
North Carolina 4 3 3 3 0
South Carolina 15 15 4 4 0
Missouri 5 5 6 5 1
Georgia 11 10 8 6 2
Colorado 18 18 5 7 -2
Oklahoma 10 9 19 8 11
Florida 19 19 11 9 2
Mississippi 12 12 14 10 4
Indiana 23 23 18 11 7
Utah 3 4 7 12 -5
New York 8 7 17 13 4
Virginia 7 6 10 14 -4
West Virginia 17 17 24 15 9
Hawaii 6 11 12 16 -4
Kentucky 28 27 20 17 3
Michigan 9 8 13 18 -5
North Dakota 16 16 16 19 -3
New Mexico 25 24 23 20 3
Montana 13 13 9 21 -12
Arizona 19 14 15 22 -7
Alabama 14 22 22 23 -1
Tennessee 22 21 27 24 3
Nevada 34 33 21 25 -4
Alaska 27 26 25 26 -1
Connecticut 32 31 34 27 7
California 33 32 38 28 10
Idaho 24 25 28 29 -1
Wisconsin 30 29 31 30 1
Nebraska 29 28 29 31 -2
Maryland 21 20 26 32 -6
Oregon 35 34 30 33 -3
Arkansas 39 39 40 34 6
Kansas 38 38 32 35 -3
Illinois 26 36 37 36 1
Louisiana 40 40 35 37 -2
Maine 41 41 33 38 -5
Massachusetts 36 35 39 39 0
Rhode Island 31 30 36 40 -4
Washington 45 46 42 41 1
Ohio 46 47 43 42 1
New Hampshire 47 45 46 43 3
Minnesota 43 43 44 44 0
Vermont 37 37 41 45 -4
Pennsylvania 44 44 45 46 -1
Texas 49 49 48 47 1
Iowa 48 48 47 48 -1
New Jersey 42 42 49 49 0
Delaware 50 50 50 50 0

Source: Tax Foundation

This article was first published by The Center Square.



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