If you can make it in New York, as the Sinatra song says, you can make it anywhere. And when it comes to making money, it’s never been truer: The Tax Foundation’s latest survey finds New York is the worst state in the U.S. for business.
A combination of high individual income tax, a high unemployment insurance tax and a high property tax land New York at the bottom of the list. Here are the five worst states for business when it comes to taxes, according to the survey.
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1. No. 50: New York
New York is 49th when it comes to the individual income tax, and 45th for both the unemployment insurance tax and property tax.
2. No. 49: New Jersey
Right next door to New York, New Jersey is 50th for the property tax and 48th for its individual income tax. “New York and New Jersey are in a virtual tie for last place, and any change next year could change their positions,” write Tax Foundation Index authors Scott Drenkard and Joseph Henchman.
3. No. 48: California
California is dead last when it comes to its individual income tax, though its unemployment insurance tax and property tax rank relatively well.
4. No. 47: Minnesota
Drenkard and Henchman point out that Minnesota recently enacted tax changes including a retroactive increase in the individual income tax, hurting the state’s ranking.
5. No. 46: Rhode Island
The smallest state pays big taxes, ranking 50th in terms of its unemployment insurance tax and 46th for its property tax.