Minnesota ranks 45th in annual tax climate ranking

Minnesota also ranked 44th for its corporate tax, 46th for individual income taxes, 28th for sales taxes and 26th in the property tax category.

By
The Center Square
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Minnesota finished 45th in a new study by the Tax Foundation showing which states are best at structuring their tax systems.

All 50 states tax private property and unemployment insurance, according to the foundation’s analysis, which is titled the “2020 State Business Tax Climate Index.” But several states do without certain major taxes, such as corporate income, individual income and sales.

Many of the highest-rated states lack one of these major taxes, although some states that levy all the major taxes had high scores. That’s because their tax structures feature low rates and are broadly levied, the foundation reports.

Minnesota also ranked 44th for its corporate tax, 46th for individual income taxes, 28th for sales taxes and 26th in the property tax category.

The states at the bottom of the ranking tend to have complex, non-neutral systems for raising revenues, along with relatively high tax rates, according to the authors of the analysis.

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How Do State Tax Systems Measure Up?

State Overall Rank Corporate Tax Rank Individual Income Tax Rank Sales Tax Rank Property Tax Rank Unemployment Insurance Tax Rank
Wyoming 1 1 1 6 39 27
South Dakota 2 1 1 35 22 44
Alaska 3 26 1 5 25 46
Florida 4 9 1 23 13 2
Montana 5 21 25 3 12 20
New Hampshire 6 43 9 1 44 45
Nevada 7 25 5 44 10 47
Oregon 8 33 38 4 18 36
Utah 9 12 10 22 5 15
Indiana 10 11 15 20 2 25
Delaware 11 50 41 2 6 3
Michigan 12 18 12 9 24 17
Texas 13 47 6 36 38 12
Missouri 14 5 24 24 7 9
North Carolina 15 3 16 21 34 10
North Dakota 16 19 20 27 3 13
Colorado 17 7 14 37 14 43
Tennessee 18 24 8 47 31 24
Washington 19 41 6 49 27 19
Arizona 20 22 17 40 8 6
Idaho 21 29 26 12 4 48
New Mexico 22 20 31 41 1 8
West Virginia 23 15 28 18 17 29
Kentucky 24 17 18 14 36 49
Virginia 25 14 35 11 32 41
Wisconsin 26 30 37 7 23 37
Oklahoma 27 8 33 39 19 1
Nebraska 28 31 21 10 41 11
Pennsylvania 29 46 19 17 21 42
South Carolina 30 4 34 31 30 26
Mississippi 31 10 27 34 37 5
Georgia 32 6 36 29 28 39
Maine 33 38 22 8 43 32
Kansas 34 35 23 38 20 14
Illinois 35 36 13 33 40 40
Massachusetts 36 39 11 13 48 50
Hawaii 37 16 47 30 11 28
Ohio 38 42 44 32 9 7
Rhode Island 39 40 29 25 45 31
Alabama 40 23 30 50 15 18
Louisiana 41 37 32 48 33 4
Iowa 42 48 42 15 35 35
Maryland 43 32 45 19 42 33
Vermont 44 45 39 16 49 16
Minnesota 45 44 46 28 26 34
Arkansas 46 34 40 46 29 23
Connecticut 47 27 43 26 50 21
California 48 28 49 45 16 22
New York 49 13 48 43 46 38
New Jersey 50 49 50 42 47 30

* 1 is best; 50 is worst

Source: Tax Foundation

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