Montana’s Business Tax Climate Rates Sixth Best in the Nation According to Tax Foundation
A new study by the Tax Foundation ranks Montana as having the sixth best business tax climate in the country. Economist Scott Drenkard worked on the study and explained what factors went into the ranking.
"We're looking at the corporate income tax, the individual income tax, sales taxes, property taxes, unemployment insurance taxes," Drenkard said. "Montana ranks very well because the state levies broad based taxes. The taxes that the state has have relatively low rates. One of the main drivers, of course, of Montana's beneficial score, is going without a sales tax."
Even though Montana did really well compared to nearly everyone else, Drenkard said there’s room for improvement.
"In Montana, there's still a ways to go in terms of tax reform," Drenkard said. "The corporate tax rate is relatively high. Wyoming, South Dakota, and North Dakota have lower rates or don't even levy that tax at all. Also, the individual income tax rate tops out in Montana at 6.9 percent. In North Dakota, it tops out at 3.22 percent, so it's much lower. In Wyoming and South Dakota they don't even levy that tax."
Wyoming had the best Business tax climate in the country, followed by South Dakota. New Jersey was at the bottom of the list.