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Not all state tax regimes are equal, with some states not collecting all of the major taxes, such as corporate income tax, individual income tax or sales tax.
The Tax Foundation measured the states with most and least competitive taxes in 2025, by analyzing factors including corporate tax rank, individual income tax rank, sales tax rank, property tax rank and unemployment insurance tax rank to determine an overall score.
Wyoming is the state with the most competitive taxes, as it has no corporate or individual income tax. New York is the state with the least competitive taxes, having complex, nonneutral taxes with comparatively high rates.
Read more about the states with the most and least competitive taxes in 2025.
Most competitive taxes
State
Overall
rank
Corporate
tax rank
Individual
income
tax rank
Sales tax
rank
Property
tax rank
Unemployment
tax rank
Indiana
10
8
16
17
5
13
North Dakota
9
7
17
15
4
12
Tennessee
8
48
1
47
33
17
Texas
7
46
1
36
40
30
New Hampshire
6
32
12
1
39
27
Montana
5
19
10
3
18
21
Florida
4
16
1
14
21
10
Alaska
3
34
1
5
30
45
South Dakota
2
1
1
31
10
22
Wyoming
1
1
1
7
44
31
Least competitive taxes
State
Overall rank
Corporate tax rank
Individual income tax rank
Sales tax rank
Property tax rank
Unemployment tax rank
Hawaii
42
25
46
28
24
49
Vermont
43
36
43
29
49
8
Minnesota
44
43
44
34
26
42
Washington
45
47
15
50
25
44
Maryland
46
37
45
39
35
20
Connecticut
47
31
47
21
50
40
District of Columbia
48
32
47
41
48
25
California
48
41
49
46
23
25
New Jersey
49
44
48
35
43
50
New York
50
28
50
42
47
37
