At a glance
- Louisiana climbed nine places to 23rd, and Michigan fell nine to 25th.
- The index scores states on more than 150 variables, with individual income tax carrying 30.2% of the weight, and reflects law as of July 1, 2026.
- Advisors comparing state tax burdens for high-earning clients now have a dated baseline: the index reflects law as of July 1, 2026.
Louisiana posted the largest gain and Michigan the steepest drop in the Tax Foundation's 2027 State Tax Competitiveness Index, InvestmentNews reported. Louisiana climbed nine places to 23rd, and Michigan fell nine to 25th. Missouri and Utah moved into the top 10, displacing Idaho and North Dakota, while New York remained last.
The index scores states on more than 150 variables, with individual income tax carrying 30.2% of the weight, and reflects law as of July 1, 2026. Nebraska rose eight places to 16th after cutting its top individual rate to 4.55% from 5.2%. Oklahoma climbed four to 15th. Michigan's slide stemmed largely from not adopting federal expensing changes.
Advisors comparing state tax burdens for high-earning clients now have a dated baseline: the index reflects law as of July 1, 2026. Private Wealth Daily previously reported that the foundation rebuilt the index's methodology in 2025.
Louisiana gained nine places, Michigan lost nine
Change in state rank on the 2027 State Tax Competitiveness Index vs. the prior year, in places
- Above zero
- Below zero
- Louisiana+9 places
- Nebraska+8 places
- West Virginia+6 places
- Utah+5 places
- Oklahoma+4 places
- Kansas+4 places
- Michigan−9 places
Show as table
| Label | Value (places) |
|---|---|
| Louisiana | +9 places |
| Nebraska | +8 places |
| West Virginia | +6 places |
| Utah | +5 places |
| Oklahoma | +4 places |
| Kansas | +4 places |
| Michigan | −9 places |
Reported by the Tax & estate planning desk from InvestmentNews. Published . Corrections