Indiana's Tax Climate Ranks 11th In The Nation

Indiana's tax climate ranks 11th in the nation according to the Tax Foundation, the same position it held in last year's rankings of the 50 states. Neighboring Illinois' rating moved the most, falling from 16th place in 2011 to 28th place in 2012. "A state that raises sufficient revenue without one of the major taxes will, all things being equal, have an advantage over those states that levy every tax in the state collector's arsenal," the Tax Foundation report concludes. The states with the best tax climates in order are:

1. Wyoming
2. South Dakota
3. Nevada
4. Alaska
5. Florida
6. New Hampshire
7. Washington
8. Montana
9. Texas
10. Utah

The states with the worst rax climates are:

41. Iowa
42. Maryland
43. Wisconsin
44. North Carolina
45. Minnesota
46. Rhode Island
47. Vermont
48. California
49. New York
50. New Jersey

Notice that almost all of the states with favorable tax climates are red states, while almost all of the states with unfavorable tax climates are blue states. You can view the background paper prepared by the Tax Foundation here.