NEW YORK (TheStreet) - Which state has the highest taxes for businesses and individuals?
Fostering economic growth and development is not only dependent upon corporate taxes, but how friendly the state is to consumers through individual income rates and sales tax rates, according to a new report from the Tax Foundation, a right-leaning Washington, D.C.-based think tank.
States that made the think tank's "worst for business" list in its 11th annual State Business Tax Climate Index had several common characteristics, including "complex, non-neutral taxes with comparatively high rates," according to the report, which compares states on more than 100 different variables within five areas of taxation - corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes and property taxes. The report also considers any tax changes in effect as of July 1, 2014, the start of most states' fiscal year.
New Jersey ranked the lowest in the index because it is among the states with "the highest property tax burdens," "is one of just two states to levy both an inheritance and an estate tax," and has an income tax structure that the conservative think tank says is among the worst in the country.
Click through to see which states made the list.
Iowa ranked 2nd for highest corporate tax rate.
Connecticut ranked 2nd for highest property taxes.
Wisconsin ranked 8th for highest individual income taxes and 18th for highest corporate taxes.
Ohio ranked 4th for highest individual income tax and 19th for highest sales tax.
6. Rhode Island
Rhode Island ranked 2nd for highest unemployment insurance tax and 4th for highest property tax.
Vermont ranked 3rd for highest property tax rate, 7th for highest individual income tax rate and 9th for highest corporate tax rate.
Minnesota ranked 5th for highest individual income tax rate and 7th for highest corporate tax rate.
California ranked 1st for highest individual income tax rate and 9th for highest sales tax rate.
2. New York
New York ranked 2nd for highest individual income tax rate, 5th for highest property tax rate, and 11th for highest sales tax rate.
1. New Jersey
New Jersey ranked 1st for highest property tax rate, and 3rd for both highest individual income tax rate and sales tax rate.
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-Written by Laurie Kulikowski in New York.