BUSINESS

New study: Indiana is 8th friendliest for business taxes

Jeff Swiatek
jeff.swiatek@indystar.com

The top state in the Midwest for business tax competitiveness?

None other than Indiana.

Indiana ranks 8th overall in the Tax Foundation’s latest State Business Tax Climate Index, two spots up from its 10th-place finish last year.

The state’s performance in the 11th annual index was publicized Wednesday by the Indiana Economic Development Corp. It noted that Indiana was the only Midwestern state in the top 10, with Michigan ranked 13th, Kentucky 26th, Illinois 31st, Iowa 41st, Wisconsin 43rd, Ohio 44th and Minnesota 47th.

The Tax Foundation, a nonpartisan tax research group based in Washington, D.C., measures how each state structures its tax code by analyzing more than 100 tax variables in five categories: corporate, individual income, sales, property and unemployment insurance taxes.

“Here in Indiana, companies can count on a stable business climate that encourages their growth and success,” Indiana Gov. Mike Pence said in a statement. “Since Day One, we’ve focused on streamlining government and cutting taxes for Hoosier workers and businesses. By making things simpler, we’re not just building on our reputation through national rankings —we’re attracting businesses from around the world that are creating thousands of new jobs right here in a state that works for business.”

The top three states in the index are Wyoming, South Dakota and Nevada. The bottom three: California, New York and New Jersey.

Call Star reporter Jeff Swiatek at (317)444-6483. Follow him on Twitter: @JeffSwiatek.