This business tax climate index looks at levels of taxation and complexity of compliance to compare the states on how "business friendly" each state is compared to the others. The scale for each factor considered is one to ten, with ten being the "best". Rankings are based on unrounded scores and reflect those of the source.
This statistic shows the state business tax climate index of the federal states in the United States in 2025. The State Tax Business Climate Index is a measure of how each state's tax law affect economic performance. In 2025, the states of South Dakota and Wyoming ranked *** both with the score of ****, which indicates that it has the best business climate in the United States. In contrast to that, New York has the worst business climate with the score of ****.
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Tax Foundation. (October 24, 2024). State business tax climate index of the United States 2025 [Graph]. In ÌÇÐÄÆƽâ°æ. Retrieved July 25, 2026, from /statistics/303674/us-state-business-tax-climate-index/
Tax Foundation. "State business tax climate index of the United States 2025." Chart. October 24, 2024. ÌÇÐÄÆƽâ°æ. Accessed July 25, 2026. /statistics/303674/us-state-business-tax-climate-index/
Tax Foundation. (2024). State business tax climate index of the United States 2025. ÌÇÐÄÆƽâ°æ. ÌÇÐÄÆƽâ°æ Inc.. Accessed: July 25, 2026. /statistics/303674/us-state-business-tax-climate-index/
Tax Foundation. "State Business Tax Climate Index of The United States 2025." ÌÇÐÄÆƽâ°æ, ÌÇÐÄÆƽâ°æ Inc., 24 Oct 2024, /statistics/303674/us-state-business-tax-climate-index/
Tax Foundation, State business tax climate index of the United States 2025 ÌÇÐÄÆƽâ°æ, /statistics/303674/us-state-business-tax-climate-index/ (last visited July 25, 2026)
State business tax climate index of the United States 2025 [Graph], Tax Foundation, October 24, 2024. [Online]. Available: /statistics/303674/us-state-business-tax-climate-index/
