Indiana ranks among best for business tax climate

Indiana – According to a recent Tax Foundation report, Indiana has one of the greatest tax structures in the country due of its low rates.

Indiana is ranked 10th out of all states in the 2024 State Business Tax Climate Index, a report that allows individuals, government regulators, and business leaders to evaluate state tax structures.

Indiana’s ranking is unchanged from 2014, however, it is one spot lower than it was the previous year.

“Taxation is inevitable, but the specifics of a state’s tax structure matter greatly. The measure of total taxes paid is relevant, but other elements of a state tax system can also enhance or harm the competitiveness of a state’s business environment,” according to the report.

The corporate tax, individual income tax, sales tax, property tax, and unemployment insurance tax were all evaluated in order to rank the states.

All categories saw Indiana in the top 20, with the exception of the unemployment insurance tax, where it dropped to No. 25.

Property taxes in the Hoosier State ranked third, with corporation taxes (12), individual income taxes (16), and sales taxes (18) coming next.

Wyoming, South Dakota, Alaska, Florida, Montana, New Hampshire, Nevada, Utah, North Carolina, and Indiana are the ten finest states.

“The absence of a major tax is a common factor among many of the top 10 states,” the report said. “Property taxes and unemployment insurance taxes are levied in every state, but there are several states that do without one or more of the major taxes: the corporate income tax, the individual income tax or the sales tax. Nevada, South Dakota, and Wyoming have no corporate or individual income tax (though Nevada imposes gross receipts taxes); Alaska has no individual income or state-level sales tax; Florida has no individual income tax; and New Hampshire and Montana have no sales tax. This does not mean, however, that a state cannot rank in the top 10 while still levying all the major taxes. Indiana and Utah, for example, levy all the major tax types but do so with low rates on broad bases.”