Analysis: North Dakota ranks 20th best in state income tax study


North Dakota finished 20th in a new study by the Tax Foundation ranking which states have the most business-friendly income tax structures.

The state’s ranking rose seven positions from its 2018 score, according to the foundation’s analysis, which is part of a wider study titled “2019 State Business Tax Climate Index.”

Forty-one states levy individual income taxes that are broad-based. The seven that do not are Alaska, Florida, South Dakota, Wyoming, Nevada, Texas and Washington. The two remaining states – Tennessee and New Hampshire – tax only investment income, such as interest and dividends.

Individual income tax rates concern business owners because states tax sole proprietorships and certain classes of businesses using their income tax codes, according to the foundation. States that scored well in the analysis either had no income tax or a flat tax with low rates, while states with highly progressive income tax systems and high rates received lower rankings, the study said.

---

How Do States Measure Up on Individual Income Taxes?

State

2018 Rank

 2019 Rank 

Change from 2018 to 2019

Alaska

1

  1 

0

Florida

1

  1 

0

South Dakota

1

  1 

0

Wyoming

1

  1 

0

Nevada

5

  5 

0

Texas

6

  6 

0

Washington

6

  6 

0

Tennessee

8

  8 

0

New Hampshire

9

  9 

0

Utah

10

  10 

0

Massachusetts

11

  11 

0

Michigan

12

  12 

0

Illinois

13

  13 

0

Colorado

14

  14 

0

Indiana

15

  15 

0

North Carolina

16

  16 

0

Kentucky

37

  17 

20

Pennsylvania

17

  18 

-1

Arizona

18

  19 

-1

North Dakota

27

  20 

7

Kansas

19

  21 

-2

Montana

21

  22 

-1

Idaho

23

  23 

0

Maine

20

  24 

-4

Missouri

32

  25 

7

Nebraska

24

  26 

-2

Mississippi

25

  27 

-2

West Virginia

26

  28 

-2

Rhode Island

30

  29 

1

Alabama

28

  30 

-2

New Mexico

29

  31 

-2

Louisiana

22

  32 

-10

Oklahoma

31

  33 

-2

South Carolina

34

  34 

0

Virginia

33

  35 

-2

Oregon

36

  36 

0

Vermont

43

  37 

6

Georgia

35

  38 

-3

Wisconsin

41

  39 

2

Arkansas

39

  40 

-1

Delaware

40

  41 

-1

Iowa

42

  42 

0

Connecticut

44

  43 

1

Ohio

45

  44 

1

Maryland

47

  45 

2

District of Columbia

48

  45 

3

Minnesota

46

  46 

0

Hawaii

38

  47 

-9

New York

49

  48 

1

California

50

  49 

1

New Jersey

48

  50 

-2

Source: Tax Foundation

Want to get notified whenever we write about Tax Foundation ?

Sign-up Next time we write about Tax Foundation, we'll email you a link to the story. You may edit your settings or unsubscribe at any time.

Organizations in this Story

Tax Foundation

More News

Metro Business Network