Property Tax Rating by State | property tax rating


In the present day’s map exhibits the rating of states on the property tax element of our 2022 State Enterprise Tax Local weather Index, indexThe property tax element of the Evaluation assesses state and native taxes on actual and private property, internet price, and property transfers. The wealth tax element is 14.4 p.c of every state’s complete. index rating.

Property tax issues to companies for a lot of causes. First, companies personal a major quantity of actual property, and tax charges on industrial property are sometimes greater than comparable residential property charges. Many states and territories tax not solely the land and buildings owned by a enterprise but additionally tangible belongings akin to equipment, tools and workplace furnishings, in addition to intangible belongings akin to patents and logos. Throughout the nation, the property tax is among the most important state and native tax burdens that the majority companies face. In fiscal 12 months 2020, taxes on actual, private and utility property accounted for about 38 p.c of all taxes paid by companies to state and native governments, in line with the Council on State Taxation.

Though taxes on actual property are usually unpopular among the many public, a well-structured actual property tax is mostly in line with the revenue precept (the thought in public finance that taxes paid needs to be associated to advantages acquired) and most Extra clear than different taxes.

Alternatively, taxes on intangible belongings, cash and asset transfers are dangerous and distorted. States levying such taxes—together with capital inventory taxes, stock and intangible wealth taxes, and property, inheritance, reward, and actual property switch taxes—are much less financially enticing, as they create a disincentive for funding and discourage companies from investing in it. Encourage them to make decisions. Tax codes that they might not in any other case create. Companies with worthwhile logos could attempt to keep away from headquartering in states with intangible asset taxes, and delivery and distribution networks could also be formed by the presence or absence of stock taxes.

States are in a greater place to draw enterprise funding after they keep aggressive actual property tax charges and keep away from dangerous taxes on tangible private property, intangible belongings, cash and property transfers. This 12 months, the states with one of the best scores on the property tax element are Indiana, New Mexico, Idaho, Delaware, Nevada and Ohio. The states with the worst scores on this element are Connecticut, Vermont, Illinois, New York, New Hampshire, Massachusetts, New Jersey, and the District of Columbia.

To seek out out whether or not your state’s property tax construction has grow to be kind of aggressive lately, see the next desk. (Methodological modifications have been made in earlier years to facilitate comparability.)

property tax element State Enterprise Tax Local weather Index (2019-2022)
State 2019 rank 2020 rank 2021 rank 2022 Rank Change from 2021 to 2022
alabama 19 18 19 19 0
alaska 22 23 23 24 -1
Arizona 1 1 1 1 10 1 1 -1
Arkansas 26 25 26 27 -1
california 13 15 14 14 0
Colorado 33 33 33 34 -1
Connecticut 50 50 50 50 0
Delaware 4 4 4 4 0
Florida 12 12 12 12 0
Georgia 29 30 25 25 0
ethereal 21 26 29 30 -1
idaho 3 3 3 3 0
Illinois 48 48 48 48 0
Indiana 2 2 2 1 1
Iowa 38 38 38 39 -1
Kansas 31 31 31 31 0
Kentucky 23 21 22 22 0
louisiana 27 27 24 23 1
I 40 40 40 41 -1
Maryland 41 41 43 43 0
Massachusetts 45 44 45 45 0
Michigan 25 24 20 21 -1
Minnesota 32 32 32 32 0
Mississippi 37 37 37 38 -1
Missouri 9 9 8 8 0
montana 30 28 28 29 -1
Nebraska 39 39 41 40 1
Nevada 5 6 5 5 0
new Hampshire 46 45 47 46 1
new jersey 44 46 44 44 0
new Mexico 1 1 1 2 -1
New York 47 47 46 47 -1
North Carolina 14 13 13 13 0
North Dakota 6 7 1 1 10 1
ohio 7 5 6 6 0
Oklahoma 28 29 30 28 2
Oregon 16 19 16 17 -1
Pennsylvania 17 16 15 15 0
Rhode Island 42 42 42 42 0
South Carolina 36 35 35 36 -1
South Dakota 15 14 21 18 3
Tennessee 35 34 34 33 1
Texas 34 36 36 37 -1
Utah 8 8 7 7 0
Vermont 49 49 49 49 0
Virginia 24 22 27 26 1
Washington 18 17 18 20 -2
West Virginia 10 10 9 9 0
Wisconsin 20 20 17 16 1
Wyoming 43 43 39 35 4
District of Columbia 49 49 50 50 0

Be aware: 1 rank is one of the best, 50 is the worst. All marks are for the monetary 12 months. DC’s rating and rank haven’t any bearing on different states.

Supply: Tax Basis.

To be taught extra about how we decided these rankings, learn our full methodology.



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