EAST LANSING – A new nationwide study of state business tax burden by Anderson Economic Group shows that Michigan has the sixteenth lowest business tax burden in the nation.
The study found that 8.0 percent of Michigan business profits went toward state and local taxes in 2015 (the most recent year for which data are available). Meanwhile, Indiana has the fifth lowest tax burden of any state, with 7.0 percent of business profits going toward taxes, and Ohio has the 9th lowest burden at 7.3 percent.
Anderson Economic Group’s 2017 Business Tax Burden Rankings is the eighth edition of an annual comprehensive report on the business tax burdens of all 50 states and the District of Columbia. The report shows Oklahoma, Oregon, and North Carolina leading the nation with the lowest business tax burdens, and Maine, Wyoming and North Dakota with the highest burdens.
The report considers more than just corporate income taxes, addressing 11 different categories of taxes paid by business. Of these, property and sales taxes are the largest taxes borne by businesses.
“Some tax rankings order states based on the rate for a single tax or on a particular tax policy preference,” said Jason Horwitz, AEG director of economics and public policy. “We estimate the actual amount of tax revenue collected from businesses across all types of business taxes.”
The rankings are based on an objective measure of business tax burden that allow employers, policymakers, and investors to compare business tax burdens in different states using a published and consistent methodology, and fully disclosed data sources.