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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.
States with the 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 |
States with the least competitive taxes
State
| Overall
rank | Corporate
tax rank | Individual
income
tax rank | Sales tax
rank | Property
tax rank | Unemployment
insurance tax rank |
Hawaii
| 10
| 26
| 5
| 23
| 27
| 2
|
Vermont
| 9
| 15
| 8
| 22
| 2
| 43
|
Minnesota
| 8
| 8
| 7
| 17
| 25
| 9
|
Washington
| 7
| 4
| 36
| 1
| 26
| 7
|
Maryland
| 6
| 14
| 6
| 12
| 16
| 31
|
Connecticut
| 5
| 20
| 4
| 30
| 1
| 11
|
District of Columbia
| 3 (tie)
| 19
| 4
| 10
| 3
| 26
|
California
| 3 (tie)
| 10
| 2
| 5
| 28
| 26
|
New Jersey
| 2
| 7
| 3
| 16
| 8
| 1
|
New York
| 1
| 23
| 1
| 9
| 4
| 14
|
In 2020-2024, the rank of DC does not affect the rank of the states.
