2017 Best (And Worst) States For Taxes For Solution Provider Startups

Taxed To The Max?

When starting a solution provider business, money can be an entrepreneur's most precious resource. After all, there's probably more of it going out than coming in. So having to pay more of it in taxes reduces the resources a startup has available – and reduces its chances of succeeding.

As part of the 2017 Best (And Worst) States for Starting a Solution Provider Business, CRN looked at the 2017 corporate income tax rates, individual income tax rates (as of July 1, 2017), sales tax rates (as of Jan. 1, 2017), property taxes and unemployment insurance taxes that businesses have to pay in each state (as well as individual income taxes that private business owners and employees have to pay). For criteria that's ranked, the lower the number, the lower the tax burden.

Most of the tax date was obtained from the Tax Foundation (taxfoundation.org). In addition to the specific tax rates and rankings for each state, we've included each state's ranking on the Small Business & Entrepreneurship Council's Small Business Tax Index.

Best States No. 10: North Dakota

Corporate income tax rate: 4.31%

Combined state and average local sales tax rates: 6.78%

Top individual income tax rate: 2.9%

Property tax rank: No. 3

Unemployment insurance tax rank: No. 15

Small Business Tax Index rank: No. 16

Best States No. 9: Nebraska

Corporate income tax rate: 7.81%

Combined state and average local sales tax rates: 6.89%

Top individual income tax rate: 6.84%

Property tax rank: No. 39

Unemployment insurance tax rank: No. 8

Small Business Tax Index rank: No. 39

Best States No. 8: Mississippi

Corporate income tax rate: 5%

Combined state and average local sales tax rates: 7.07%

Top individual income tax rate: 5%

Property tax rank: No. 35

Unemployment insurance tax rank: No. 5

Small Business Tax Index rank: No. 17

Best States No. 7: Missouri

Corporate income tax rate: 6.25%

Combined state and average local sales tax rates: 7.89%

Top individual income tax rate: 6%

Property tax rank: No. 7

Unemployment insurance tax rank: No. 7

Small Business Tax Index rank: No. 21

Best States No. 6: Delaware

Corporate income tax rate: 8.7%

Combined state and average local sales tax rates: 0%

Top individual income tax rate: 6.6%

Property tax rank: No. 20

Unemployment insurance tax rank: No. 3

Small Business Tax Index rank: No. 36

Best States No. 5: Indiana

Corporate income tax rate: 6.25%

Combined state and average local sales tax rates: 7%

Top individual income tax rate: 3.23%

Property tax rank: No. 4

Unemployment insurance tax rank: No. 10

Small Business Tax Index rank: No. 14

Best States No. 4: North Carolina

Corporate income tax rate: 3%

Combined state and average local sales tax rates: 6.9%

Top individual income tax rate: 5.499%

Property tax rank: No. 31

Unemployment insurance tax rank: No. 6

Small Business Tax Index rank: No. 9

Best States No. 3: Ohio

Corporate income tax rate: 0%

Combined state and average local sales tax rates: 7.14%

Top individual income tax rate: 4.997%

Property tax rank: No. 11

Unemployment insurance tax rank: No. 4

Small Business Tax Index rank: No. 8

Best States No. 2: Oklahoma

Corporate income tax rate: 6%

Combined state and average local sales tax rates: 8.86%

Top individual income tax rate: 5%

Property tax rank: No. 12

Unemployment insurance tax rank: No. 1

Small Business Tax Index rank: No. 19

Best States No. 1: Florida

Corporate income tax rate: 5.5%

Combined state and average local sales tax rates: 6.8%

Top individual income tax rate: 0%

Property tax rank: No. 10

Unemployment insurance tax rank: No. 2

Small Business Tax Index rank: No. 6

Worst States No. 41: New Hampshire

Corporate income tax rate: 8.2%

Combined state and average local sales tax rates: 0%

Top individual income tax rate: 5%

Property tax rank: No. 43

Unemployment insurance tax rank: No. 41

Small Business Tax Index rank: No. 32

Worst States No. 42: Iowa

Corporate income tax rate: 12%

Combined state and average local sales tax rates: 6.8%

Top individual income tax rate: 8.98%

Property tax rank: No. 40

Unemployment insurance tax rank: No. 34

Small Business Tax Index rank: No. 46

Worst States No. 43: New York

Corporate income tax rate: 6.5%

Combined state and average local sales tax rates: 8.49%

Top individual income tax rate: 8.82%

Property tax rank: No. 47

Unemployment insurance tax rank: No. 32

Small Business Tax Index rank: No. 43

Worst States No. 44: Illinois

Corporate income tax rate: 7.75%

Combined state and average local sales tax rates: 8.64%

Top individual income tax rate: 4.95%

Property tax rank: No. 46

Unemployment insurance tax rank: No. 38

Small Business Tax Index rank: No. 25

Worst States No. 45: Idaho

Corporate income tax rate: 7.4%

Combined state and average local sales tax rates: 6.03%

Top individual income tax rate: 7.4%

Property tax rank: No. 2

Unemployment insurance tax rank: No. 46

Small Business Tax Index rank: No. 35

Worst States No. 46: Pennsylvania

Corporate income tax rate: 9.99%

Combined state and average local sales tax rates: 6.34%

Top individual income tax rate: 3.07%

Property tax rank: No. 32

Unemployment insurance tax rank: No. 45

Small Business Tax Index rank: No. 29

Worst States No. 47: Maine

Corporate income tax rate: 8.93%

Combined state and average local sales tax rates: 5.5%

Top individual income tax rate: 10.15%

Property tax rank: No. 41

Unemployment insurance tax rank: No. 44

Small Business Tax Index rank: No. 48

Worst States No. 48: Kentucky

Corporate income tax rate: 6%

Combined state and average local sales tax rates: 6%

Top individual income tax rate: 6%

Property tax rank: No. 36

Unemployment insurance tax rank: No. 48

Small Business Tax Index rank: No. 40

Worst States No. 49: Massachusetts

Corporate income tax rate: 8%

Combined state and average local sales tax rates: 6.25%

Top individual income tax rate: 5.1%

Property tax rank: No. 45

Unemployment insurance tax rank: No. 49

Small Business Tax Index rank: No. 31

Worst States No. 50: Rhode Island

Corporate income tax rate: 7%

Combined state and average local sales tax rates: 7%

Top individual income tax rate: 5.99%

Property tax rank: No. 44

Unemployment insurance tax rank: No. 50

Small Business Tax Index rank: No. 34