NEW YORK (TheStreet) - Which state has the lowest 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 "best for business" list in its 11th annual State Business Tax Climate Index do not tax on one or more of either the corporate tax, individual income tax, or the sales tax. But there are still states that rank in the top 10 even though they levy for all major taxes. Wyoming, Nevada and South Dakota, the top three states on the list, do not tax for corporate or individual income.
The report 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.
Click through to see the states made the list.
Texas ranked 6th among states for low individual income taxes and 15th for unemployment insurance taxes.
Utah ranked 5th among states for lowest corporate taxes and 12th for individual income taxes.
Indiana ranks 5th for lowest property taxes and 7th for lowest unemployment insurance taxes.
7. New Hampshire
New Hampshire ranks 2nd for lowest sales tax and 9th for lowest income tax. It also ranks 48th for corporate income tax.
Montana is ranked 3rd for lowest sales tax.
Florida is ranked 1st for lowest individual income tax and 3rd for lowest unemployment insurance tax.
Alaska is ranked 1st for lowest individual income tax and 5th for lowest sales tax.
Nevada is tied for 1st for lowest corporate tax rate and for lowest individual income tax rate. Sales tax and unemployment insurance tax is higher there, however, relative to other states.
2. South Dakota
South Dakota is also tied for 1st for lowest corporate tax rate and for lowest individual income tax rate.
Wyoming is also tied for 1st for lowest corporate tax rate and for lowest individual income tax rate. It's also 13th for lowest sales tax.
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-Written by Laurie Kulikowski in New York.