Tennessee is the 14th best state for taxes on business, according to the Tax Foundation’s look at state tax policies.
The 2012 State Business Tax Climate Index released Wednesday compares states on five different categories – major business taxes, individual income taxes, sales taxes, unemployment insurance taxes and property taxes.
Not surprisingly, Tennessee’s ranks highest – 8th – in the income tax category and worst – 43rd – in the sales tax category. Tennessee does not tax individual wages or salaries. However, Tennessee’s combined state and local sales tax is the nation’s highest at 9.4 percent, the report says.
Comparing state business tax policy is important because a state’s biggest competition for new businesses comes from other states and not the threat of losing jobs to other countries, the report says.