(The Center Square) – Nearly every northeastern state ranked in the bottom 10 for the worst business tax climate rate in the nation, excluding Maine and New Hampshire, according to a new report from The Tax Foundation.
New Jersey bottomed out the list, one spot above New York — while Connecticut ranked 47, Massachusetts 46, Vermont 43 and Rhode Island 41. In stark contrast, New Hampshire ranked the sixth best in the nation, while Maine ranked 34.
The Tax Foundation cites several “afflictions” contributing to the poor rankings for the northeast, including “complex, nonneutral taxes with comparatively high rates,” according to the report.
The Tax Foundation argues New Jersey’s highest in the nation property tax burden and corporate income tax rate, in addition to having one of the highest individual income tax rates, as significant factors in the state’s low ranking.
Massachusetts fell 12 spots from last year’s ranking. Not only did the commonwealth score poorly for business taxes, but it also dropped 33 places to the sixth worst in the nation for individual taxes.
Connecticut’s low ranking was hampered by the state holding the crown for the worst property tax rate in the nation and the fourth worst for individual income tax rate.
New York’s ranking was hurt by the state having the highest individual income tax rates and the second-highest property tax in the nation.
Rhode Island took a ding for having the second-highest unemployment insurance tax rating, and ranking 40th in corporate tax rates. Despite the poor score, the report credited the state for its improvement from 41st to 35th in property taxes in the past year.
The Foundation specifically attributed the property tax improvement to a new bill enacted this summer that exempts taxation for the first $50,000 of each taxpayer’s “taxable tangible personal property.”
Vermont took its most significant hit for having the third highest property tax in the nation, 39th place for individual income tax rate and 38th place for corporate tax rate.
Meanwhile, the Granite State’s ranking was boosted by ranking first in the nation for sales tax rates and 10th for individual income taxes.