Missouri ranks 17th in the Tax Foundation’s State Business Tax Climate Index, down from 15th two years ago and 14th three years ago. The report is based on the states’ corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes and property taxes. Missouri’s rate was better than all surrounding states except Tennessee, ranked 15th.
“This year, Missouri policymakers passed an income tax reduction that phases down the top rate from 6 percent to 5.5 percent by 0.1 percent each year starting in 2017, dependent on a revenue trigger,” the report said. The best tax climates are in Wyoming, South Dakota and Nevada, according to the report. The worst are in New Jersey, New York and California.