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10 Best States for Entrepreneurship and Small Business
The Small Business & Entrepreneurship Council’s “Business Tax Index 2010” ranks the states from best to worst in terms of the costs of their tax systems on entrepreneurship and small business. The Index pulls together 16 different tax measures, and combines those into one tax score that allows the 50 states and District of Columbia to be compared and ranked. Here are this year’s top 10 state tax systems, according to the study. | WATCH

Denver, Colorado Skyline

10. Colorado

Tax Index/Rank 26.855/10
Top Personal Income Tax Rate/Rank 4.63%/17
Top Capital Gains Tax Rate/Rank 4.63%/18
Top Corporate Income Tax Rate/Rank 4.63%/8
Top Corporate Capital Gains Tax Rate/Rank 4.63%/10
State Gas Tax (dollars per gallon)/Rank $0.22/18(tie)

Rock and Roll Hall of Fame in Cleveland, Ohio

9. Ohio

Tax Index/Rank 25.52/9
Top Personal Income Tax Rate/Rank 6.24%/30
Top Capital Gains Tax Rate/Rank 6.24%/32
Top Corporate Income Tax Rate/Rank 0%/1(tie)
Top Corporate Capital Gains Tax Rate/Rank 0%/1(tie)
State Gas Tax (dollars per gallon)/Rank $0.28/35

Dogsled in Alaska

8. Alaska

Tax Index/Rank 25.16/8
Top Personal Income Tax Rate/Rank 0%/1(tie)
Top Capital Gains Tax Rate/Rank 0%/1(tie)
Top Corporate Income Tax Rate/Rank 9.4%/46
Top Corporate Capital Gains Tax Rate/Rank 4.5%/9
State Gas Tax (dollars per gallon)/Rank $0.08/1

Cotton Field Near Birmingham, Alabama

7. Alabama

Tax Index/Rank 24.808/7
Top Personal Income Tax Rate/Rank 3.25%/12
Top Capital Gains Tax Rate/Rank 4.25%/15
Top Corporate Income Tax Rate/Rank 4.225%/7
Top Corporate Capital Gains Tax Rate/Rank 4.225%/8
State Gas Tax (dollars per gallon)/Rank $0.209/14(tie)

Beach in Fort Lauderdale, Florida

6. Florida

Tax Index/Rank 23.01/6
Top Personal Income Tax Rate/Rank 0%/1(tie)
Top Capital Gains Tax Rate/Rank 0%/1(tie)
Top Corporate Income Tax Rate/Rank 5.5%/14
Top Corporate Capital Gains Tax Rate/Rank 5.5%/16
State Gas Tax (dollars per gallon)/Rank $0.344/43

Seattle Space Needle in Washington State

5. Washington

Tax Index/Rank 15.57/5
Top Personal Income Tax Rate/Rank 0%/1(tie)
Top Capital Gains Tax Rate/Rank 0%/1(tie)
Top Corporate Income Tax Rate/Rank 0%/1(tie)
Top Corporate Capital Gains Tax Rate/Rank 0%/1(tie)
State Gas Tax (dollars per gallon)/Rank $0.375/46

Wyoming Countryside

4. Wyoming

Tax Index/Rank 14.63/4
Top Personal Income Tax Rate/Rank 0%/1(tie)
Top Capital Gains Tax Rate/Rank 0%/1(tie)
Top Corporate Income Tax Rate/Rank 0%/1(tie)
Top Corporate Capital Gains Tax Rate/Rank 0%/1(tie)
State Gas Tax (dollars per gallon)/Rank $0.14/2

Las Vegas Sign in Nevada

3. Nevada

Tax Index/Rank 12.257/3
Top Personal Income Tax Rate/Rank 0%/1(tie)
Top Capital Gains Tax Rate/Rank 0%/1(tie)
Top Corporate Income Tax Rate/Rank 0%/1(tie)
Top Corporate Capital Gains Tax Rate/Rank 0%/1(tie)
State Gas Tax (dollars per gallon)/Rank $0.331/42

Austin, Texas Skyline

2. Texas

Tax Index/Rank 11.42/2
Top Personal Income Tax Rate/Rank 0%/1(tie)
Top Capital Gains Tax Rate/Rank 0%/1(tie)
Top Corporate Income Tax Rate/Rank 0%/1(tie)
Top Corporate Capital Gains Tax Rate/Rank 0%/1(tie)
State Gas Tax (dollars per gallon)/Rank $0.20/12(tie)

Mount Rushmore in South Dakota

1. South Dakota

Tax Index/Rank 10.94/1
Top Personal Income Tax Rate/Rank 0%/1(tie)
Top Capital Gains Tax Rate/Rank 0%/1(tie)
Top Corporate Income Tax Rate/Rank 0%/1(tie)
Top Corporate Capital Gains Tax Rate/Rank 0%/1(tie)
State Gas Tax (dollars per gallon)/Rank $0.24/26

10 Best States for Entrepreneurship and Small Business

The Small Business & Entrepreneurship Council’s “Business Tax Index 2010” ranks the states from best to worst in terms of the costs of their tax systems on entrepreneurship and small business. The Index pulls together 16 different tax measures, and combines those into one tax score that allows the 50 states and District of Columbia to be compared and ranked. Here are this year’s top 10 state tax systems, according to the study. | WATCH

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