Tax Foundation: Texas’ Business Tax Climate among the Ten Best in the Nation
The Tax Foundation today released its annual State Business Tax Climate Index, a comprehensive state-by-state analysis of tax systems and their comparative “friendliness.” The index ranks each state’s overall competitiveness based on the tax burden, or lack thereof, in 5 broad areas: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and property taxes.
In years past, Texas has measured up fairly well in the study’s rankings—and this year was no different. For the 2013 rankings, Texas’ tax climate was ranked as the 9th most competitive in the nation, on par with last year’s results.
In the sub-indexes, which are weighted differently, Texas scored well in the areas of individual income taxes and unemployment insurance taxes while struggling with relatively burdensome property taxes, corporate taxes, and sales taxes.
- Corporate Tax Ranking: 38th
- Individual Income Tax Ranking: 7th
- Sales Tax Ranking: 36th
- Unemployment Insurance Tax Ranking: 14th
- Property Tax Ranking: 32nd
Overall, the state did well in this year’s rankings, but there is clearly room for improvement—something we hope the Legislature will seize upon come January 2013.