Louisiana has dropped three spots on The Tax Foundation’s State Business Tax Climate Index to No. 35 overall in the United States. Louisiana was ranked No. 32 on the annual rankings for the past three years.
In compiling the overall rankings, the Washington, D.C.-based nonprofit says it considers five components in each state and weights them as follows: individual income tax (32%), sales tax (22%), corporate income tax (20%), property tax (15%) and unemployment insurance tax (11%).
Louisiana received its best ranking, No. 6, for its unemployment insurance tax, while it got its worst ranking, No. 50, for its notoriously high sales tax rates. The state is ranked No. 23 for corporate taxes, No. 24 for its property tax and No. 27 for its individual income tax.
The top five states in this year’s ranking, released today, are Wyoming, South Dakota, Nevada, Alaska and Florida. The bottom five states are Vermont, Minnesota, California, New York and New Jersey. See an overview and access the complete report and rankings. —Steve Sanoski