Texas ranks 11th in annual tax climate ranking

Texas finished 11th in a new study by the Tax Foundation that lists which states have best structured their tax systems, with 1 being the best (Wyoming) and 50 being the worst (New Jersey).

All 50 states tax private property and unemployment insurance, according to the foundation’s analysis, “2021 State Business Tax Climate Index.”

States at the bottom of the ranking tend to have complex, non-neutral systems for raising revenues, along with relatively high tax rates.

Texas ranked 47th for its corporate tax, sixth for individual income taxes, 35th for sales taxes and 36th in the property tax category, according to the analysis.

State Tax System Structures from Best to Worst

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

Source: Tax Foundation

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