Missouri ranks among the best states for corporate taxes in the country, according to an annual report.
The Show-Me State was ranked #11 in the Tax Foundation’s 2023 State Business Tax Index, an annual survey of states’ tax systems and structures. Missouri ranks among the top four states in terms of corporate income taxes and seventh in terms of overall property tax rate.
“Missouri remains one of the top overall states for corporate taxes in the country — and a top contender in the Midwest — earning a place in the top 15 states for the fourth straight year,” the Missouri Partnership said in a press release.
Missouri ranked ahead of all surrounding states in the overall rankings, with Tennessee at No. 14, Kentucky at No. 18, Oklahoma at No. 23, Kansas at No. 25, Nebraska at No. 29, Illinois at No. 36, Iowa at No. 38, and Arkansas coming up 40th place
Arizona took first place in the rankings, while New Jersey ranked at the bottom of the list.
The Show-Me State has risen in the ranks in multiple categories over the years, from No. 14 in 2016 to No. 11 in 2020, where it has stayed in the years since. The report pointed to the state corporate income tax rate of 4 percent, the second lowest in the US after South Dakota and Wyoming. The $11,000 taxable unemployment insurance wage base and 0.96 percent property tax rate also worked in the state’s favor, according to the Missouri Partnership.
Low corporate tax rates and modest labor and business costs have benefited the state’s ranking and business environment, the report said, alongside incentive programs, sponsored training opportunities and energy prices that are “economical and predictable.”
The state didn’t fare as well in other categories: its personal tax ranked 21st in the country, while it ranked 26th at the top of the bottom half for sales taxes.
The report pointed to recent pledges from prominent companies that are expected to bring an influx of funds and employees.
Meta, Facebook’s parent company, has committed to a new $800 million data center near Kansas City, while American Foods Group is adding an $800 million processing facility in Warren County.
The Lake of the Ozarks region is expected to make its own economic investments over the next few years, with last year announcing a $60 million Osage Nation casino and a $300 million resort and entertainment district in Osage Beach is expected to open in 2024.
“The rankings stand – Missouri is the perfect location for companies seeking low taxes and ample opportunities,” the press release reads.
Missouri Partnership is an economic development partnership between the public and private sectors. It works with partners across the state to attract new job opportunities and businesses. Since its inception in 2008, it has attracted more than 31,000 new jobs, $1.6 billion in new salaries and $6 billion in capital investment.
The Tax Foundation is a non-partisan research firm based in the country’s capital. It has been in operation since 1937.