Skip to main content Navigation

Articles and News

THE 10 BEST AND WORST STATES FOR TAXES March 28, 2012 (0 comments)


Washington, DC—As if New Jersey didn’t have enough to live down with TV shows like Jersey Shore, Real Housewives, and The Sopranos portraying the state as a place full of people you don’t want to meet, it also came in dead last in the Tax Foundation’s 2012 State Business Tax Climate Index as the worst state in the nation for taxes. 

All states levy some kind of property tax and unemployment insurance tax, according to the Tax Foundation. But all other things being equal, states that can raise revenue without some of the other major tax categories—such as corporate tax, personal income tax, or sales tax—have an advantage over states that have those taxes. Indeed, according to the Department of Labor, far more U.S. business and job migration is state-to-state than overseas.

Of course, all other things aren’t necessarily equal: New Jersey may have terrible taxes, but its close proximity to New York, Philadelphia, and to a lesser degree, Boston and Washington, DC, obviously counts for a lot because it’s still the most densely populous state in the nation. It also has easy access to multiple major international airports and shipping ports, and while it can’t boast the nation’s best weather, it’s also not home to its worst. Jersey Shore notwithstanding, New Jersey’s extensive coastline does, in fact, attract millions of vacationers a year from near and far.

Meanwhile, the most tax-friendly state, Wyoming, is remote, hard to get a direct flight, and gets very cold, snowy winters. It’s great for skiers and nature lovers, but tough on people who are used to having easy access to anything they want. Ditto the second-best, South Dakota.

According to the 2012 State Business Tax Climate Index, the 10 best tax states are: Wyoming, South Dakota, Nevada, Alaska, Florida, New Hampshire, Washington, Montana, Texas, and Utah.

The 10 worst, by comparison, are: New Jersey, New York, California, Vermont, Rhode Island, Minnesota, North Carolina, Wisconsin, Maryland, and Iowa. New Jersey’s second-worst property tax (Connecticut is the worst), third-worst individual income tax, fifth-worst sales tax, and 13th-worst corporate tax all combine to give its terrible score.

Read the Tax Foundation’s research here.

(Top image:




Share This:

Leave a Comment:

Human Check