At a glance
- The state tax ranking has been published annually since 2003.
- Each state now gets its own summary flagging notable features of its tax code and explaining its rank.
- The index draws on more than 150 variables, no longer confined to appendix tables, with sortable and filterable datasets online.
Tax Foundation released its 2027 State Tax Competitiveness Index on Nov. 5. The state tax ranking has been published annually since 2003. The foundation rebranded it from the State Business Tax Climate Index in 2025, saying the new name better reflects a state's overall tax competitiveness rather than its business tax climate alone. It rebuilt the methodology at the same time.
Each state now gets its own summary flagging notable features of its tax code and explaining its rank. The state page also lists state-specific reforms the foundation says would improve competitiveness.
The index draws on more than 150 variables, no longer confined to appendix tables, with sortable and filterable datasets online.
For advisors working through residency and relocation questions with clients, the composite rank captures the structure of the tax code rather than the single income tax rate a client will pay after a move.
Reported by the Tax & estate planning desk from Tax Foundation. Published . Corrections