Despite Texas’ strong economy, issues with the state’s main business tax have dropped Texas out of the top 10 states with the best business tax climates for the first time in years, according to the Tax Foundation, a nonprofit, nonpartisan tax research organization based in Washington, D.C.
Indiana, which is reducing its corporate tax rate, pushed Texas into the 11th spot primarily because of Texas’ franchise tax, commonly called the margins tax, according to the annual study.
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Best Business Tax Climates
- South Dakota
- New Hampshire
— Tax Foundation