The best and worst states for taxes in 2025

Not all state tax regimes are equal, with some states not collecting all of the major taxes, such as corporate income tax, individual income tax or sales tax. 

The Tax Foundation measured the states with most and least competitive taxes in 2025, by analyzing factors including corporate tax rank, individual income tax rank, sales tax rank, property tax rank and unemployment insurance tax rank to determine an overall score. 

Wyoming is the state with the most competitive taxes, as it has no corporate or individual income tax. New York is the state with the least competitive taxes, having complex, nonneutral taxes with comparatively high rates.

Read more about the states with the most and least competitive taxes in 2025.

Most competitive taxes

State	Overall rank	Corporate tax rank	Individual income tax rank	Sales tax rank	Property tax rank	Unemployment tax rank
Indiana	10	8	16	17	5	13
North Dakota	9	7	17	15	4	12
Tennessee	8	48	1	47	33	17
Texas	7	46	1	36	40	30
New Hampshire	6	32	12	1	39	27
Montana	5	19	10	3	18	21
Florida	4	16	1	14	21	10
Alaska	3	34	1	5	30	45
South Dakota	2	1	1	31	10	22
Wyoming	1	1	1	7	44	31

Least competitive taxes

State	Overall rank	Corporate tax rank	Individual income tax rank	Sales tax rank	Property tax rank	Unemployment tax rank
Hawaii	42	25	46	28	24	49
Vermont	43	36	43	29	49	8
Minnesota	44	43	44	34	26	42
Washington	45	47	15	50	25	44
Maryland	46	37	45	39	35	20
Connecticut	47	31	47	21	50	40
District of Columbia	48	32	47	41	48	25
California	48	41	49	46	23	25
New Jersey	49	44	48	35	43	50
New York	50	28	50	42	47	37