Analysis: North Carolina ranks 3rd best in corporate tax study


North Carolina finished third in a study by the Tax Foundation examining which states have the most business-friendly corporate income tax structures.

The state’s ranking remained unchanged from its 2018 score, according to the foundation’s analysis, which is part of a wider study titled “2019 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 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.

The highest-scoring states in the analysis were South Dakota, Wyoming, North Carolina and Missouri.

---

How Do States Measure Up on Corporate Taxes?

State2018 Rank 2019 Rank Change from 2018 to 2019
South Dakota1  1 0
Wyoming1  1 0
North Carolina3  3 0
Missouri5  4 1
Utah4  5 -1
Florida19  6 13
New York6  7 -1
Georgia7  8 -1
Oklahoma9  9 0
Virginia7  10 -3
Michigan10  11 -1
Montana11  12 -1
West Virginia23  13 10
Hawaii14  14 0
Mississippi12  15 -3
Colorado13  16 -3
Arizona15  17 -2
Indiana24  18 6
South Carolina16  19 -3
Alabama18  20 -2
New Mexico20  21 -1
Maryland21  22 -1
North Dakota17  23 -6
Tennessee22  24 -2
Alaska26  25 1
Idaho25  26 -1
Kentucky28  27 1
Nebraska27  28 -1
Connecticut33  29 4
Oregon29  30 -1
California31  31 0
Rhode Island32  32 0
Nevada37  33 4
Kansas35  34 1
Wisconsin30  35 -5
Louisiana36  36 0
Massachusetts38  37 1
Vermont40  38 2
Illinois34  39 -5
Arkansas41  40 1
Maine39  41 -2
Minnesota43  42 1
Pennsylvania44  43 1
Washington45  44 1
New Hampshire46  45 1
Ohio47  46 1
New Jersey42  47 -5
Iowa48  48 0
Texas49  49 0
Delaware50  50 0
Source: Tax Foundation

Want to get notified whenever we write about Tax Foundation ?

Sign-up Next time we write about Tax Foundation, we'll email you a link to the story. You may edit your settings or unsubscribe at any time.

Organizations in this Story

Tax Foundation

More News

Metro Business Network