1. South Dakota (1/11)

The Tax Foundation recognized South Dakota as the most business-friendly state when it comes to tax environment. With no corporate or individual income tax, companies find the state a smart choice for doing business.
South Dakota Basic Business Taxes 2010

2. Alaska (2/11)

With its lack of individual income and state-level sales taxes, the Tax Foundation deemed Alaska's tax environment a boon to business. The state also has no property tax and offers incentives under its Alaska Exploration Incentives Act.
Alaska Basic Business Taxes 2010

3. Wyoming (3/11)

Wyoming offers businesses a number of tax exemptions, including no corporate income tax, a manufacturing machinery tax exemption, and pollution-control equipment tax exemptions. Tax incentives encourage new business investments.
Wyoming Basic Business Taxes 2010

4. Nevada (4/11)

Nevada's tax environment is drawing a range of business investments. The Tax Foundation recognized the state for its lack of a corporate income tax, option for sales and tax abatement, and the ability to defer sales and use taxes.
Nevada Basic Business Taxes 2010

5. Florida (5/11)

The Sunshine State has no individual income tax and offers programs to ease the tax burden on businesses. That includes a Qualified Defense and Space Contractor Tax Refund, and a Capital Investment Tax Credit.
Florida Basic Business Taxes 2010

6. Montana (6/11)

Montana levies no sales tax on businesses and has other programs to ensure a positive tax environment for businesses. Property tax incentives and abatements are available to companies considering the state.
Montana Basic Business Taxes 2010

7. New Hampshire (7/11)

The only New England state to crack the Tax Foundation's top 10, New Hampshire is pro-business when it comes to taxes. The state has no sales tax, no personal income tax, and no capital gains tax.
New Hampshire Basic Business Taxes 2010

8. Delaware (8/11)

Representing the Mid-Atlantic, Delaware has long been a favorite locale for financial and credit card companies due to its tax environment. The state levies no sales or property taxes and offers targeted industry tax incentives.
Delaware Basic Business Taxes 2010

9. Utah (9/11)

This Mountain state offers a number of tax incentives to encourage new business development, including research tax credits and property tax inducements.
Utah Basic Business Taxes 2010

10. Indiana (10/11)

A business-friendly tax climate is helping propel this Midwestern state's recovery. It levies no inventory tax and offers Economic Development for a Growing Economy (EDGE) tax credits.
Indiana Basic Business Taxes 2010

Related Resources:

Tax Foundation: 2011 State Business Tax Climate Index (Eighth Edition) (Click for study)

Editors' Picks:

Top States for Doing Business: Cost, Business Friendliness, and Taxes

Taxation: A Decisive Factor in Location Selection

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