North Carolina ranks 15th in the nation for business tax climate, according to the Tax Foundation.
The Tax Foundation’s annual State Business Tax Climate Index analyzes more than 100 tax variables in five categories—corporate, individual, income, sales, property and unemployment insurance taxes—to determine how each state’s tax code compares to the rest. According to the foundation, the more complex, burdensome and economically harmful the tax code is, the worse the state’s score. States with transparent and neutral tax codes that don’t distort business decisions, however, earn better rankings.
Here’s how North Carolina stacked up in the 2016 report:
15th overall rank
7th in corporate taxes
14th in individual income taxes
31st in sales taxes
11th in unemployment insurance taxes
32nd in property taxes
North Carolina fared better than all neighboring states. Georgia ranked 39th, South Carolina 36th, Tennessee 16th and Virginia 30th.
“The evidence shows that states with the best tax systems will be the most competitive at attracting new businesses and most effective at generating economic and employment growth,” the study says. “…unlike changes to a state’s healthcare, transportation, or education systems, which can take decades to implement, changes to the tax code can quickly improve a state’s business climate.”
To read the full study, visit http://taxfoundation.org/article/2016-state-business-tax-climate-index.