Inside INdiana Business is reporting that Indiana’s tax system is once again among the top in the nation. The Washington D.C.-based Tax Foundation’s 2019 State Business Tax Climate Index ranks Indiana 10th for its overall tax climate and number one in the Midwest.
The Tax Foundation says the index is designed to show how well states structure their tax systems and provide a road map for improvement. The states are ranked based on variables in several categories, including corporate tax, individual income tax, sales tax, property tax, and unemployment insurance tax.
Indiana’s overall ranking fell one spot compared to last year’s index. The foundation cites Indiana’s consistent rate reductions made possible through various tax reform efforts between 2011 and 2016.
“Subsequent legislation established a further schedule of corporate income tax reductions through fiscal year 2022. For 2018, the corporate income tax rate declined from 6 to 5.75 percent. This rate reduction, among other changes, drove an improvement of six places on the corporate component of the Index. The Hoosier State and Utah continue to post the best rankings among states which impose all the major taxes.”
Wyoming is at the top of the 2019 index, followed by Alaska, South Dakota, Florida and Montana. New Jersey is listed at number 50 on the index.