According to the Tax Foundation’s 2018 State Business Tax Climate Index, Colorado ranked 18th for its tax competitiveness, holding steady at the same spot from 2017.
On the bright side, Coloradans do enjoy the nation’s lowest sales tax rate—2.9 percent—of states that collect on the study authors note.
The Foundation’s annual index is designed to help business leaders, government policymakers, and taxpayers determine how their state’s tax system compares to others.
Here’s how Colorado rated on all metrics:
Corporate tax: 18th
Individual income tax: 15th
Sales tax: 39th
Unemployment insurance tax: 35th
Property tax: 14th
Overall, Wyoming ranked No. 1, and New Jersey ranked worst at No. 50.
The study’s authors also noted that the “absence of a major tax is a common factor among many of the top 10 states.” “Property taxes and unemployment insurance taxes are levied in every state, but there are several states that do without one or more of the major taxes: the corporate income tax, the individual income tax, or the sales tax. Wyoming, Nevada, and South Dakota have no corporate or individual income tax (though Nevada imposes gross receipts taxes); Alaska has no individual income or state-level sales tax; Florida has no individual income tax; and New Hampshire, Montana, and Oregon have no sales tax.”
Click here for more information about the study, and to see how neighboring states ranked.
