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Indiana Again a Best State for Business

Thursday, November 30, 2017

The Tax Foundation has released its annual State Business Tax Climate Index for 2018 and Indiana retains its title as the best in the Midwest for yet another year.

“Indiana saw consistent rate reductions through a series of responsible tax reform efforts between 2011 and 2016,” explained the latest index. Scott Drenkard, director of state projects for the Tax Foundation says tax reform in Indiana has been “groundbreaking and reflects a thoughtful, mature approach to building a simple, competitive tax system.”

The Tax Foundation establishes its rankings for the index based on 114 tax variables sorted into five key components: income tax, sales tax, corporate tax, property tax and unemployment insurance tax. These factors are weighted into a final score for ranking the fifty states as well as Washington, D.C.

Nationwide, Indiana ranks 9th overall. Michigan holds its own at 12th, but most of Indiana’s neighbors aren’t even close with Illinois at 29th, Wisconsin at 38th and Ohio at 45th.

Some specific highlights on Indiana’s business climate include:

  • Not allowing local sales taxes to be stacked on top of the seven percent state rate
  • Having a broad sales tax base with few exemptions
  • Not taxing business inputs
  • State constitutionally mandated property tax caps

To view more information and see the full rankings, visit:


Tax Foundation