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10 Worst 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 worst 10 state tax systems, according to the study. | WATCH

Boston Skyline in Massachusetts

10. Massachusetts

Tax Index Rank 44.64/42
Top Personal Income Tax Rate/Rank 5.3%/22
Top Capital Gains Tax Rate/Rank 5.3%/25
Top Corporate Income Tax Rate/Rank 9.5%/47
Top Corporate Capital Gains Tax Rate/Rank 9.5%/47
State Gas Tax (dollars per gallon)/Rank $0.235/23(tie)
REUTERS

Shipping Cranes in Portland, Oregon

9. Oregon

Tax Index/Rank 45.833/43
Top Personal Income Tax Rate/Rank 11%/50(tie)
Top Capital Gains Tax Rate/Rank 11%/51
Top Corporate Income Tax Rate/Rank 7.9%/32(tie)
Top Corporate Capital Gains Tax Rate/Rank 7.9%/33
State Gas Tax (dollars per gallon)/Rank $0.25/29(tie)
REUTERS

Vermont Maple Syrup Bottles

8. Vermont

Tax Index/Rank 47.317/44
Top Personal Income Tax Rate/Rank 8.95/46
Top Capital Gains Tax Rate/Rank 8.95%/47
Top Corporate Income Tax Rate/Rank 8.5%/37(tie)
Top Corporate Capital Gains Tax Rate/Rank 8.5%/38(tie)
State Gas Tax (dollars per gallon)/Rank $0.247/28
REUTERS

Corn Plants Growing at an Iowa Farm

7. Iowa

Tax Index/Rank 48.905/45
Top Personal Income Tax Rate/Rank 5.837%/25
Top Capital Gains Tax Rate/Rank 7.633%/41
Top Corporate Income Tax Rate/Rank 9.9%/49
Top Corporate Capital Gains Tax Rate/Rank 9.9%/49
State Gas Tax (dollars per gallon)/Rank $0.22/18
REUTERS

Lobster Fishing in Maine

6. Maine

Tax Index/Rank 49.062/46
Top Personal Income Tax Rate/Rank 8.5%/44(tie)
Top Capital Gains Tax Rate/Rank 8.5%/45t
Top Corporate Income Tax Rate/Rank 8.93%/43
Top Corporate Capital Gains Tax Rate/Rank 8.93%/44
State Gas Tax (dollars per gallon)/Rank $0.31/37

New York Stock Exchange

5. New York

Tax Index/Rank 49.442/47
Top Personal Income Tax Rate/Rank 8.97%/47
Top Capital Gains Tax Rate/Rank 8.97%/48
Top Corporate Income Tax Rate/Rank 8.307%/36
Top Corporate Capital Gains Tax Rate/Rank 8.307%/37
State Gas Tax (dollars per gallon)/Rank $0.449/49
REUTERS

Hollywood Sign in California

4. California

Tax Index/Rank 50.126/48
Top Personal Income Tax Rate/Rank 10.55%/48
Top Capital Gains Tax Rate/Rank 10.55%/49
Top Corporate Income Tax Rate/Rank 8.84%/42
Top Corporate Capital Gains Tax Rate/Rank 8.84%/43
State Gas Tax (dollars per gallon)/Rank $0.486/51
REUTERS

Honeywell Plant in Minnesota

3. Minnesota

Tax Index/Rank 51.844/49
Top Personal Income Tax Rate/Rank 7.85%/42
Top Capital Gains Tax Rate/Rank 7.85%/43
Top Corporate Income Tax Rate/Rank 9.8%/48
Top Corporate Capital Gains Tax Rate/Rank 9.8%/48
State Gas Tax (dollars per gallon)/Rank $0.272/32
REUTERS

Port Newark Container Terminal in New Jersey

2. New Jersey

Tax Index/Rank 54.970/50
Top Personal Income Tax Rate/Rank 10.75%/49
Top Capital Gains Tax Rate/Rank 10.75%/50
Top Corporate Income Tax Rate/Rank 9.36%/45
Top Corporate Capital Gains Tax Rate/Rank 9.36%/46
State Gas Tax (dollars per gallon)/Rank $0.145/3
REUTERS

U.S. Capitol Building in Washington, D.C.

1. District of Columbia

Tax Index/Rank 58.805/51
Top Personal Income Tax Rate/Rank 8.5%/44(tie)
Top Capital Gains Tax Rate/Rank 8.5%/45(tie)
Top Corporate Income Tax Rate/Rank 9.975%/50
Top Corporate Capital Gains Tax Rate/Rank 9.975%/50
State Gas Tax (dollars per gallon)/Rank $0.235/23(tie)
REUTERS

10 Worst 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 worst 10 state tax systems, according to the study. | WATCH

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