The published 50-state ranking
Compare state taxes on business income, hiring costs and everyday expenses, alongside quality of life.
Higher scores mean a stronger result on the factors this guide measures. They do not guarantee a better fit for your household or investment. Ties stay tied, and missing data is clearly marked.
Taxstra’s published 2026 ranking. One methodology, applied consistently to every state. 90% financial evidence and 10% WalletHub Quality of Life. See the factors and scoring rules.
Pick a state. See how it fits.
Explore grades out of 10, category ranks and the tradeoffs behind them. Each state uses the same published factors and weights.
The map loads when the page opens. All 50 states are available in the selector and table.
Gray = unavailable or provisional; no comparable rank. Alaska and Hawaii shown as insets.
Boundaries: U.S. Census Bureau / US Atlas.
Why Illinois scores this way
Illinois ranks #33 of 50, with 5.4 / 10. The category tiles show its strengths and tradeoffs.
A higher category score means a stronger result on that measure. Check the “Good fit for” and “Less suited to” notes against your own priorities.
2026 state guideSmall business owners
Illinois
Taxstra’s state comparison
Overall score#33 in the comparison
90% cost and financial score (5.0/10) · 10% quality of life (9.3/10)
How to read this score
Owner tax uses a separate $500K state-taxable ordinary-business base. Labor-market wages and household prices are other inputs. The five-worker wage benchmark is not the separate $500K employee-payroll scenario. Entity and payroll taxes are itemized separately, not silently assumed zero.
State tax on $500K of taxable business income
#28 of 50 · 27% weight$24,750 in state income tax in our $500,000 taxable-business-income example; business fees, payroll and local taxes are separate.
Cost of hiring employees
#36 of 50 · 36% weight$355,650. Estimated pay for five workers using the state’s average wage; actual jobs and salaries will differ.
Everyday living costs
#33 of 50 · 27% weight$99,958. What a $100,000 national spending budget would cost here; lower costs score better.
Quality of life
#5 of 50 · WalletHub category · 10% weightWalletHub: #5 for Quality of Life, #18 overall; this score uses the category.
Homeowner property taxes
#45 of 50 · Not in overall score$5,399 typical annual homeowner tax bill; check the specific property before budgeting.
Good fit for
- Owners who compare replacement tax and the owner’s PTET credit together
Less suited to
- Calling 4.95% the complete Illinois S corporation tax burden
Illinois: full analysis and evidenceRead the state-specific explanation and supporting sources.
Illinois
Back to comparison ↑Illinois taxes individual income at 4.95%, but an S corporation also has a 1.5% personal property replacement tax. The optional 4.95% PTET is a further election with owner credit mechanics, not a substitute for the replacement-tax layer.
Illinois makes the PTET election on a timely IL-1120-ST or IL-1065, including extensions. The regime is permanent; partnership tax-base changes for years ending on or after December 31, 2026 require care when comparing a partnership with an S corporation.
- Illinois DOR current income-tax rates (2026; 2026-09-12)
- Illinois DOR, PTET election FAQ (2026; 2026-08-30)
- Illinois DOR, pass-through information (2026; 2026-08-30)
- Illinois FY 2027-01 bulletin (2026; 2026-08-30)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
Cite the state. Include the method.
Use the state, guide title, published methodology and source years when citing a score. State selection changes the card, not the ranking methodology.
Media and interview inquiries · Source data · Taxstra methodology
Full ranking table · 50 of 50 statesCompare every state’s rank, housing costs, property taxes and tax treatment.
50 of 50 states
| Rank | State | Business owner tax, labor and household grade | Home value ACS 2024 | Property-tax bill ACS 2024 median | Price index BEA 2024 | PTET research |
|---|---|---|---|---|---|---|
| 1 | South Dakota | 8.5 / 10 | $289,600 | $2,940 | 88.6 | No resident-owner elective PTET; $0 incremental election payment |
| 2 | Mississippi | 8.1 / 10 | $186,500 | $1,221 | 87.0 | Business schedule: 0% on first $5,000, 4% on next $5,000, 5% above $10,000; not the 4% personal rate |
| 3 | Tennessee | 7.9 / 10 | $332,600 | $1,488 | 91.9 | No resident-owner elective PTET; $0 incremental election payment |
| 4 | Louisiana | 7.9 / 10 | $223,200 | $1,187 | 88.2 | 3% for 2025 and later: statute ties elective entity rate to the individual rate |
| 5 | Arkansas | 7.8 / 10 | $215,600 | $1,113 | 86.9 | 3.7%: highest 2026 individual rate, following the retroactive 2026 reduction |
| 5 | Iowa | 7.8 / 10 | $227,300 | $2,937 | 87.8 | 3.8% for 2026 under Iowa Code 422.16C(4) and 422.5 |
| 7 | Wyoming | 7.8 / 10 | $339,500 | $1,947 | 92.7 | No resident-owner elective PTET; $0 incremental election payment |
| 8 | Oklahoma | 7.6 / 10 | $222,100 | $1,672 | 87.8 | 2026 individual/trust members: 4.5%; corporation/partnership members: 4% |
| 9 | Ohio | 7.5 / 10 | $239,800 | $2,937 | 92.8 | 3% of qualifying taxable income |
| 10 | Texas | 7.5 / 10 | $313,200 | $4,108 | 97.1 | No resident-owner elective PTET; $0 incremental election payment |
| 11 | North Dakota | 7.4 / 10 | $266,100 | $2,550 | 89.0 | No resident-owner elective PTET; $0 incremental election payment |
| 12 | Nevada | 7.3 / 10 | $455,500 | $2,143 | 100.0 | No resident-owner elective PTET; $0 incremental election payment |
| 13 | Indiana | 7.3 / 10 | $243,500 | $1,798 | 93.3 | 2.95% for 2026; 2.90% for 2027 |
| 14 | West Virginia | 7.2 / 10 | $170,800 | $881 | 89.5 | 4.58%: top 2026 individual rate on the qualified elective base |
| 15 | Kentucky | 7.2 / 10 | $226,000 | $1,611 | 90.2 | 3.5% for 2026 under the individual-rate cross-reference |
| 16 | Alabama | 7.1 / 10 | $233,300 | $890 | 88.8 | 5% of Alabama taxable income |
| 17 | Florida | 7.0 / 10 | $396,900 | $2,993 | 103.4 | No resident-owner elective PTET; $0 incremental election payment |
| 17 | Kansas | 7.0 / 10 | $238,700 | $2,983 | 90.1 | 5.58% for 2026 |
| 19 | Nebraska | 7.0 / 10 | $263,100 | $3,739 | 90.1 | 4.55% for 2026; 3.99% for 2027 and later years |
| 20 | Missouri | 6.9 / 10 | $254,400 | $2,021 | 90.8 | 4.7%: highest 2026 individual rate on the supplied qualified election base |
| 21 | Pennsylvania | 6.7 / 10 | $277,600 | $3,214 | 97.6 | No resident-owner elective PTET; $0 incremental election payment |
| 22 | North Carolina | 6.6 / 10 | $333,000 | $2,044 | 94.3 | 3.99% for 2026 |
| 23 | South Carolina | 6.6 / 10 | $299,500 | $1,337 | 93.7 | 3% of active trade or business income included in the election |
| 24 | New Mexico | 6.5 / 10 | $279,900 | $1,776 | 92.2 | 5.9% on the supplied qualified entity base |
| 25 | Michigan | 6.4 / 10 | $254,200 | $2,988 | 96.2 | 4.25% for 2026 |
| 26 | Wisconsin | 6.4 / 10 | $294,700 | $3,680 | 94.1 | 7.9% |
| 27 | Montana | 6.3 / 10 | $425,400 | $2,939 | 94.6 | 5.65% for 2026; 5.4% for 2027 |
| 28 | Idaho | 6.2 / 10 | $446,400 | $1,912 | 95.5 | 5.3% corporate-rate ABE payment; individual zero-rate threshold does not apply |
| 29 | Arizona | 6.0 / 10 | $426,000 | $1,828 | 100.7 | 2.5% for 2026 |
| 30 | Georgia | 6.0 / 10 | $343,300 | $2,554 | 96.3 | 4.99% for 2026; HB1023 aligns the electing entity rate with the individual rate for the corresponding year |
| 31 | New Hampshire | 5.7 / 10 | $458,800 | $6,707 | 104.2 | No resident-owner elective PTET; $0 incremental election payment |
| 32 | Utah | 5.7 / 10 | $545,200 | $2,648 | 98.9 | 4.45% for 2026 |
| 33 | Illinois | 5.4 / 10 | $280,700 | $5,399 | 100.0 | 4.95% of net income |
| 34 | Alaska | 5.3 / 10 | $376,500 | $3,976 | 102.4 | No resident-owner elective PTET; $0 incremental election payment |
| 34 | Maine | 5.3 / 10 | $341,900 | $3,103 | 97.1 | 7.15% on the qualified 2026 distributive-share base |
| 36 | Washington | 4.8 / 10 | $602,200 | $4,729 | 107.0 | No resident-owner elective PTET; $0 incremental election payment |
| 37 | Colorado | 4.6 / 10 | $574,600 | $2,828 | 103.1 | 4.4% of the elective entity tax base |
| 37 | Minnesota | 4.6 / 10 | $344,600 | $3,501 | 98.6 | 9.85% of the elective PTE tax base |
| 39 | Vermont | 4.5 / 10 | $352,800 | $5,026 | 98.0 | No resident-owner elective PTET; $0 incremental election payment |
| 40 | Virginia | 4.5 / 10 | $403,500 | $2,872 | 101.1 | 5.75% |
| 41 | Delaware | 4.4 / 10 | $371,600 | $1,750 | 99.8 | No resident-owner elective PTET; $0 incremental election payment |
| 42 | Rhode Island | 4.3 / 10 | $455,700 | $4,886 | 102.3 | 5.99% |
| 43 | Connecticut | 3.8 / 10 | $396,900 | $6,573 | 103.6 | 6.99% on the qualified Connecticut PE base |
| 44 | Oregon | 3.7 / 10 | $497,500 | $3,895 | 103.4 | 9% on the first $250,000 of distributive proceeds; 9.9% above |
| 45 | Maryland | 3.7 / 10 | $436,300 | $4,144 | 105.0 | 2026 individual-owner base: 8.75%; entity-member base: 8.25% |
| 46 | New Jersey | 3.6 / 10 | $496,000 | $9,358 | 108.8 | Graduated: 5.675% through $250,000; 6.52% from $250,000 to $1 million; 10.9% above $1 million |
| 47 | Massachusetts | 3.4 / 10 | $607,400 | $6,080 | 105.8 | 5% Chapter 63D, with optional separate 4% Chapter 63E on each eligible owner’s excess over the surtax threshold |
| 48 | Hawaii | 3.1 / 10 | $875,900 | $2,385 | 110.0 | 9% for tax years 2024 and later |
| 49 | New York | 3.1 / 10 | $449,800 | $6,542 | 107.9 | Graduated: 6.85% through $2 million; 9.65%, 10.30%, and 10.90% at higher PTET bases |
| 50 | California | 2.7 / 10 | $759,500 | $5,369 | 110.7 | 9.3% of qualified net income |
Business tax scenariosFixed examples of entity taxes, owner compensation and payroll costs.
Compare owner, entity and payroll tax separately
An S election changes how the business pays its owner. Start with the same $500,000 of operating profit, then compare federal employment taxes, the regular owner-income benchmark and the state entity components that can actually be calculated.
2026 rules · verified September 12, 2026 · educational, not individualized tax advice. These are controlled illustrations, not tax returns. Each state base is a separate input; the tool never assumes gross profit is the state-taxable base.
$500,000 operating profit before owner pay; $250,000 owner wages; $1.5 million current and prior-year in-state receipts; a separately supplied $500,000 owner state-taxable ordinary-business base and $234,936 state entity-income base. The owner files jointly, has no other wages and conducts all activity in the selected state. The fixed $500,000 non-owner payroll is already deducted in operating profit.
Illinois: the layers behind the decision
- Regular owner tax on supplied business base
- $24,750
- Sole proprietor federal employment taxes
- $38,175
- S-corp employer + employee FICA/Additional Medicare
- $30,128
- Remaining S-corp profit after owner pay/employer FICA
- $234,936
The federal employment-tax difference is $8,047, before income-tax effects and compliance costs; it is not a net savings recommendation. It is the same nationwide under these facts. The separate state entity base does not automatically change with salary because state additions and deductions may differ.
Illinois DOR current income-tax rates · IRS Publication 15, 2026 employer payroll taxes · IRS: self-employment tax, net earnings and deduction · IRS: Additional Medicare Tax thresholds and mixed wages/self-employment · IRS S corporation compensation and medical insurance issuesSeparately calculated Illinois entity components
- S corporation replacement tax: $3,524
Regular S corporation replacement-tax base supplied after Illinois adjustments; before credits.
Illinois DOR current income-tax rates
Entity examples use $500,000 non-owner payroll, wages paid evenly each quarter, $250,000 net worth/assets where needed, all in-state activity and no special exemption. New Hampshire models the current-year BET credit against BPT instead of adding both gross taxes. Washington uses ordinary service B&O and the stated prior-year receipts. Local taxes, SUTA/FUTA and other fees remain separate.
Exact scenario assumptions and limits
- One full-year resident owner, married filing jointly, no other wages, all business activity in the selected state.
- $500,000 operating profit is after non-owner expenses. The separate five-person $500,000 payroll has already been deducted, and is never deducted twice.
- $1.5 million revenue and $250,000 owner wages are illustrative controlled inputs, not empirical averages or a reasonable-compensation conclusion.
- Owner-income comparison supplies $500,000 of state-taxable ordinary business income. It is a separate rate/base benchmark, not a derivation of state taxable income from gross profit.
- Entity illustration separately supplies $234,936 of state entity income after owner wages and employer FICA; state-specific modifications have to be reconciled before an actual return.
- No PTET election, local tax, credits, AMT, capital gains, state special-rate election or personalized deductions in the regular owner benchmark. Ohio business-income rules are separately applied.
| State | Regular owner benchmark | Entity components | Source / scope |
|---|---|---|---|
| Alabama | $24,920 | Not fully calculated | Alabama DOR individual tax rates Supplied ordinary-income base; standard schedule. |
| Alaska | $0 | Not fully calculated | Alaska government tax facts Supplied ordinary-income base; standard schedule. |
| Arizona | $12,500 | Not fully calculated | Arizona DOR individual withholding and tax rate Supplied ordinary-income base; standard schedule. |
| Arkansas | $18,420 | Not fully calculated | Arkansas DFA 2026 special-session SB1 fiscal impact · Arkansas SB1, Act 2 of the 2026 special session Supplied ordinary-income base; standard schedule. |
| California | $39,135 | Regular nonfinancial S corporation franchise tax: $3,524 | California FTB September 3, 2026 indexing memorandum, Attachment 2 (CalTax-hosted copy) · California FTB 2025 Publication 1067: individual-return 1% tax on excess over $1 million Supplied ordinary-income base; standard schedule. |
| Colorado | $22,000 | Not fully calculated | Colorado 2026 DR 0104EP estimate worksheet Supplied ordinary-income base; standard schedule. |
| Connecticut | $30,800 | Not fully calculated | Connecticut 2026 CT-1040ES: initial tax, 2% phaseout and recapture tables Supplied ordinary-income base; standard schedule. |
| Delaware | $31,984 | Not fully calculated | Delaware DOR employer guide, income computation table Supplied ordinary-income base; standard schedule. |
| Florida | $0 | Not fully calculated | Florida DOR individual income-tax FAQ Supplied ordinary-income base; standard schedule. |
| Georgia | $24,950 | Not fully calculated | Georgia DOR important tax updates, 2026 Supplied ordinary-income base; standard schedule. |
| Hawaii | $37,432 | Not fully calculated | Hawaii Department of Taxation tax-year rate tables · Hawaii tax tables for years after December 31, 2024 Supplied ordinary-income base; standard schedule. |
| Idaho | $25,977 | Not fully calculated | Idaho Code 63-3024: 5.3% rate and statutory CPI indexing · BLS CPI-U U.S. city average: 2025 annual average 321.943 · BLS historical CPI-U: 1998 annual average 163.0 · Idaho Commission published annual tables: latest posted year 2025 · BLS archived CPI files: October 2025 data unavailable during funding lapse Supplied ordinary-income base; standard schedule. |
| Illinois | $24,750 | S corporation replacement tax: $3,524 | Illinois DOR current income-tax rates Supplied ordinary-income base; standard schedule. |
| Indiana | $14,750 | Not fully calculated | Indiana DOR rates, fees and penalties Supplied ordinary-income base; standard schedule. |
| Iowa | $19,000 | Not fully calculated | Iowa DOR 2026 income-tax rate announcement Supplied ordinary-income base; standard schedule. |
| Kansas | $27,725 | Not fully calculated | Kansas DOR enacted individual tax schedule · Kansas Notice 25-06: no 2026 rate reduction Supplied ordinary-income base; standard schedule. |
| Kentucky | $17,500 | LLET small-business minimum: $175 | Kentucky DOR software developer tax-year updates Supplied ordinary-income base; standard schedule. |
| Louisiana | $15,000 | Not fully calculated | Louisiana DOR individual income-tax reform rates Supplied ordinary-income base; standard schedule. |
| Maine | $34,710 | Not fully calculated | Maine Revenue Services revised 2026 individual rate schedules Supplied ordinary-income base; standard schedule. |
| Maryland | $26,573 | Not fully calculated | Maryland Tax-General section 10-105 Supplied ordinary-income base; standard schedule. |
| Massachusetts | $25,000 | Not fully calculated | Massachusetts DOR current tax rates Supplied ordinary-income base; standard schedule. |
| Michigan | $21,250 | Not fully calculated | Michigan Treasury 2026 individual rate determination Supplied ordinary-income base; standard schedule. |
| Minnesota | $39,754 | Not fully calculated | Minnesota DOR 2026 rates and brackets Supplied ordinary-income base; standard schedule. |
| Mississippi | $19,600 | S corporation franchise tax: $75 | Mississippi DOR general information, 2026 income tax Supplied ordinary-income base; standard schedule. |
| Missouri | $23,320 | Not fully calculated | Missouri DOR 2026 MO-1040ES tax rate chart Supplied ordinary-income base; standard schedule. |
| Montana | $27,348 | Not fully calculated | Montana DOR HB 337 income-tax changes Supplied ordinary-income base; standard schedule. |
| Nebraska | $22,148 | Not fully calculated | Nebraska DOR 2026 Form 1040N-ES worksheet Supplied ordinary-income base; standard schedule. |
| Nevada | $0 | General-business modified business tax: $6,435 Commerce Tax: $0 | Nevada Department of Taxation tax notes Supplied ordinary-income base; standard schedule. |
| New Hampshire | $0 | Business enterprise tax: $4,125 Business profits tax after current-year BET credit: $13,495 | New Hampshire DRA interest and dividends tax repeal Supplied ordinary-income base; standard schedule. |
| New Jersey | $27,808 | Not fully calculated | New Jersey Treasury resident tax rate schedules, 2020 and after Supplied ordinary-income base; standard schedule. |
| New Mexico | $25,539 | Not fully calculated | New Mexico TRD 2025 tax expenditure report: 2025-and-later income schedule · New Mexico TRD January 2026 SB60 analysis: current-law comparison table Supplied ordinary-income base; standard schedule. |
| New York | $34,250 | Not fully calculated | New York 2026 IT-2105-I estimate schedules and benefit-recapture worksheets Supplied ordinary-income base; standard schedule. |
| North Carolina | $19,950 | Not fully calculated | North Carolina DOR individual rate schedules Supplied ordinary-income base; standard schedule. |
| North Dakota | $9,209 | Not fully calculated | North Dakota 2026 ND-1ES annual tax rate schedules Supplied ordinary-income base; standard schedule. |
| Ohio | $7,500 | Not fully calculated | Ohio Revised Code chapter 5747: business deduction and distinct 3% rate Business base before Ohio deduction. |
| Oklahoma | $22,071 | Not fully calculated | Oklahoma Tax Commission 2025 legislative update, effective 2026 Supplied ordinary-income base; standard schedule. |
| Oregon | $45,987 | S corporation minimum excise tax: $150 | Oregon Legislative Revenue Office 2026 personal tax schedule Supplied ordinary-income base; standard schedule. |
| Pennsylvania | $15,350 | Not fully calculated | Pennsylvania DOR 2026 REV-413 individual estimated tax Supplied ordinary-income base; standard schedule. |
| Rhode Island | $26,818 | Not fully calculated | Rhode Island Division of Taxation 2026 inflation adjustments · Rhode Island DOR July 2026 enacted-law summary: surtax starts in 2027 Supplied ordinary-income base; standard schedule. |
| South Carolina | $25,084 | Not fully calculated | South Carolina DOR H.4216 2026 income-tax reform Supplied ordinary-income base; standard schedule. |
| South Dakota | $0 | Not fully calculated | South Dakota DOR sales and use tax guide Supplied ordinary-income base; standard schedule. |
| Tennessee | $0 | Excise tax after standard deduction: $12,021 Franchise tax on supplied net-worth base: $625 | Tennessee DOR Hall income tax repeal Supplied ordinary-income base; standard schedule. |
| Texas | $0 | 2026/2027 report franchise tax below threshold: $0 | Texas Constitution article VIII section 24-a Supplied ordinary-income base; standard schedule. |
| Utah | $22,250 | Not fully calculated | Utah Tax Commission 2026 legislative summary Supplied ordinary-income base; standard schedule. |
| Vermont | $35,361 | Business entity minimum tax: $250 | Vermont Joint Fiscal Office 2026 Fiscal Facts: personal income-tax brackets · Vermont 32 VSA 5822: federal-AGI minimum tax Supplied ordinary-income base; standard schedule. |
| Virginia | $28,493 | Not fully calculated | Virginia Tax individual income-tax computation Supplied ordinary-income base; standard schedule. |
| Washington | $0 | Service and Other Activities B&O: $26,250 | Washington DOR individual income-tax FAQs · Washington Governor: SB6346 income tax signed March 30, 2026; starts January 2028 Supplied ordinary-income base; standard schedule. |
| West Virginia | $22,103 | Not fully calculated | West Virginia Tax Division 2026 personal income-tax reduction Supplied ordinary-income base; standard schedule. |
| Wisconsin | $27,020 | Not fully calculated | Wisconsin DOR 2026 Form 1-ES instructions Supplied ordinary-income base; standard schedule. |
| Wyoming | $0 | Annual license tax: $60 | State of Wyoming tax overview Supplied ordinary-income base; standard schedule. |
What changes the comparisonThe tax, legal and financial tradeoffs behind the ranking.
The strongest state for a small business is the one where customer access, staff costs and owner cash flow work together. Taxstra’s comparison now incorporates a regular owner-income-tax benchmark on a separately supplied $500,000 state-taxable business base alongside labor costs, household prices and livability. Interactive examples calculate sourced entity and payroll components separately; this is not a total business-tax bill or profit-after-tax forecast.
What determines this guide’s grade
30% controlled owner business-income tax, 40% five-worker wage benchmark, 30% regional spending basket within the financial share. The published ranking gives financial evidence 90% and the named quality-of-life category 10%, consistently across all states. These are Taxstra’s editorial weights, not estimated predictors of future results. Owner tax uses a separate $500K state-taxable ordinary-business base. Labor-market wages and household prices are other inputs. The five-worker wage benchmark is not the separate $500K employee-payroll scenario. Entity and payroll taxes are itemized separately, not silently assumed zero.
Keep revenue, profit and salary separate
The operating scenario starts with $500,000 of profit before owner pay. Five employees at $100,000 each are a separate staffing illustration and are already deducted in operating profit; subtracting them again would understate income. Statewide wages describe a labor market, not a quote for a specific hire.
Entity choice changes the state bill
California and Illinois impose regular S corporation taxes; Kentucky has LLET; Tennessee and New Hampshire tax operating entities despite no individual wage tax. Texas, Nevada and Washington require revenue, payroll or margin inputs rather than profit alone.
Choose the operating location before the mailing address
Use the real locations of services, employees, property and customers. State incorporation and owner residence are separate facts. Compare the costs of serving a market before assuming a formation in another state changes tax.
Put the numbers in contextA worked example with explicit assumptions.
The scenario’s five $100,000 employees create $500,000 of annual wages. If the business already reports $500,000 of profit after those employee wages, subtracting the payroll again would understate profit by $500,000. Owner wages and employer costs must be modeled from the correct starting line.
Illustration only. These assumptions describe the example, not an expected client result.
Every state, explainedBrowse all 50 state chapters, with detailed analysis and linked evidence.
AlabamaRead state analysis
Alabama
Back to comparison ↑Alabama separates the owner’s graduated individual tax from an optional 5% entity election. A partnership’s guaranteed payments are included in its elective base, so owner draws and partner service compensation cannot simply be treated like S corporation payroll.
An Alabama S corporation elects annually on Form 20S and also files Form EPT. Governing-body consent and more than 50% voting-owner consent matter; expected tax above $500 creates an estimated-payment obligation.
- Alabama DOR individual tax rates (2026; 2026-09-12)
- Alabama Department of Revenue, electing pass-through entities (2026; 2026-08-30)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
AlaskaRead state analysis
Alaska
Back to comparison ↑Alaska’s absence of personal state income tax is relevant to an owner’s wage income, but it does not answer corporate, industry or municipal tax questions. The state’s own tax overview identifies local sales and property taxes, so an operating location still needs a municipal budget.
An Alaska wage-tax result of zero does not establish a zero-tax S corporation. This research has not reconciled the entity return, corporate exceptions or local business obligations, and therefore does not calculate an all-in S corporation bill.
- Alaska government tax facts (2026; 2026-09-12)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
ArizonaRead state analysis
Arizona
Back to comparison ↑Arizona’s 2.5% individual rate makes the tax base important: a low rate can still apply to substantial income. The elective PTET is restricted to participating eligible owners, so a partnership with mixed owner preferences needs allocations that match the election.
An Arizona S corporation uses the original Form 120S election process; a partnership uses Form 165. The tracker verifies a 2.5% 2026 elective rate, but does not support promising that every excess owner credit is refundable.
Source qualification: PTET: Current primary guidance verified the election and rate, but not a single unqualified statement that every excess owner credit is refundable.
- Arizona DOR individual withholding and tax rate (2026; 2026-09-12)
- Arizona Publication 713, elective PTET (2026; 2026-08-30)
- Arizona 2026 Form 120-PTE-W (2026; 2026-08-30)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
ArkansasRead state analysis
Arkansas
Back to comparison ↑Arkansas cut its top individual rate to 3.7% for 2026, while the special-session corporate reduction takes effect in 2027. Business structure and tax year therefore matter; copying the new personal rate into a C corporation comparison would be wrong.
Arkansas has an elective PTE regime, but the current research retains a review flag for election procedures and detailed owner-credit mechanics. The verified high-income wage schedule does not by itself establish the complete S corporation tax base.
Source qualification: PTET: Owner credit utilization still requires the owner return; payment arithmetic is implemented separately.
- Arkansas DFA 2026 special-session SB1 fiscal impact (2026; 2026-09-12)
- Arkansas SB1, Act 2 of the 2026 special session (2026; 2026-09-12)
- Arkansas DFA, pass-through entity tax (2026; 2026-08-30)
- Arkansas elective PTET rule (2026; 2026-08-30)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
CaliforniaRead state analysis
California
Back to comparison ↑California imposes a regular S corporation tax of 1.5% of California-source income, generally subject to an $800 minimum. A first-year minimum-tax waiver does not eliminate the percentage tax on first-year net income.
The 9.3% elective PTET is separate from the ordinary S corporation franchise tax. Owner relief is a nonrefundable credit with a five-year carryforward; after the 2026 program change, a short June payment can reduce credits even when the election survives.
- California FTB September 3, 2026 indexing memorandum, Attachment 2 (CalTax-hosted copy) (2026; 2026-09-12)
- California FTB 2025 Publication 1067: individual-return 1% tax on excess over $1 million (2026; 2026-09-12)
- California FTB, pass-through entity elective tax (2026; 2026-08-30)
- California FTB S corporation tax and minimum tax (2026; 2026-09-12)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
ColoradoRead state analysis
Colorado
Back to comparison ↑Colorado’s SALT Parity election shifts qualifying income to an entity-level computation with a refundable owner credit. The 2026 individual estimated-tax worksheet uses 4.4%, but tax credits and alternative minimum tax remain separate parts of the owner calculation.
Colorado permits the election through DR 1705 or the qualifying entity-return procedure. An entity expecting more than $5,000 of net elective liability should examine estimated payments instead of waiting until the owner’s return is prepared.
- Colorado 2026 DR 0104EP estimate worksheet (2026; 2026-09-12)
- Colorado DOR, SALT Parity Act guidance (2025; 2026-08-30)
- Colorado 2026 Form DR 1705 (2026; 2026-08-30)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
ConnecticutRead state analysis
Connecticut
Back to comparison ↑Connecticut’s PTE tax is now elective and annual. The entity signals its election on a timely CT-1065/CT-1120SI and files CT-PET; the owner’s individual tax still needs the Connecticut AGI-based recapture computation.
Connecticut counts an S corporation as a pass-through entity for this regime and requires electronic filing/payment. Its separate composite-return and CT-PET obligations need to be planned together rather than inferred from the federal S election.
- Connecticut 2026 CT-1040ES: initial tax, 2% phaseout and recapture tables (2026; 2026-09-12)
- Connecticut DRS current elective PTE eligibility, election and payments (2026; 2026-09-12)
- Connecticut CT-PET December 2025 instructions: 6.99% tax and 87.5% owner credit (2025; 2026-09-12)
- Connecticut General Assembly February 2026 tax expenditure report: PTE rate and credit (2026; 2026-09-12)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
DelawareRead state analysis
Delaware
Back to comparison ↑Delaware follows the federal classification of an LLC for income-tax purposes. Its gross receipts tax is imposed on sellers and service providers, with business-specific rates and exclusions; labor and ordinary operating costs are not deductible from that gross-receipts base.
A Delaware formation address does not turn an operating company’s revenue into tax-free income. Model owner income tax separately from Delaware gross receipts, business licensing and the entity’s formation/annual obligations.
- Delaware DOR employer guide, income computation table (2026; 2026-09-12)
- Delaware DOR: S corporation income passes to shareholders; nonresident estimated payments are personal tax (2026; 2026-09-12)
- Delaware DOR gross receipts tax FAQ (2026; 2026-09-12)
- Delaware DOR LLC tax classification (2026; 2026-09-12)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
FloridaRead state analysis
Florida
Back to comparison ↑Florida has no individual income tax, while corporations classified as taxable corporations can have a state income-tax return. An LLC taxed as a partnership may need an information return when it has a corporate owner; classification and ownership both matter.
Florida identifies S corporations that pay federal income tax on Form 1120-S line 23c among its corporate filers. The ordinary pass-through case must be distinguished from those federal entity-tax exceptions.
- Florida DOR individual income-tax FAQ (2026; 2026-09-12)
- Florida DOR corporate income tax and S corporation filing exceptions (2026; 2026-09-12)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
GeorgiaRead state analysis
Georgia
Back to comparison ↑Georgia’s 2026 individual and elective entity rates are 4.99%. HB1023 ties the electing S corporation and partnership rate to the individual rate for the corresponding year, resolving the older partnership overview’s stale 5.19% figure.
Georgia’s election is annual on Form 600S or Form 700 by the return deadline, including extensions. Relief comes through an owner income exclusion; the electing base has restrictions on deductions that would otherwise belong to a natural-person owner.
- Georgia DOR important tax updates, 2026 (2026; 2026-09-12)
- Georgia DOR 2024 enacted legislation: HB1023 aligns electing entity and individual rates (2024; 2026-09-12)
- Georgia Rule 560-7-3-.03, PTE election and owner exclusion (2026; 2026-09-12)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
HawaiiRead state analysis
Hawaii
Back to comparison ↑Hawaii’s PTE tax is 9% for 2024 and later, even though the highest personal ordinary-income bracket is 11%. The eligible-owner base includes qualified distributive shares and guaranteed payments; the entity rate is not the owner’s effective personal rate.
Hawaii requires Form N-362E and Schedule PTE with the entity return. Qualified individual, trust and estate owners receive a nonrefundable credit with carryforward; credit claimants add back deducted entity tax under the post-2024 rules.
- Hawaii Department of Taxation tax-year rate tables (2026; 2026-09-12)
- Hawaii tax tables for years after December 31, 2024 (2026; 2026-09-12)
- Hawaii Department of Taxation PTE rate, election and owner credit (2026; 2026-09-12)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
IdahoRead state analysis
Idaho
Back to comparison ↑Idaho calls its elective regime the affected business entity election. A 2026 law changed election timing effective July 1, allowing a specified amended election change before the original due date; old election timing summaries need that update.
The Idaho ABE tax uses the corporate income-tax rate and an owner credit. Payment and election timing are separate questions, so an extended filing window should not be treated as an extension to pay.
- Idaho Code 63-3024: 5.3% rate and statutory CPI indexing (2026; 2026-09-12)
- BLS CPI-U U.S. city average: 2025 annual average 321.943 (2025; 2026-09-12)
- BLS historical CPI-U: 1998 annual average 163.0 (1998; 2026-09-12)
- Idaho Commission published annual tables: latest posted year 2025 (2025; 2026-09-12)
- BLS archived CPI files: October 2025 data unavailable during funding lapse (2025; 2026-09-12)
- Idaho State Tax Commission, pass-through entities (2026; 2026-08-30)
- Idaho, 2026 ABE election-timing change (2026; 2026-08-30)
- Idaho Tax Commission business income tax rate (2026; 2026-09-12)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
IllinoisRead state analysis
Illinois
Back to comparison ↑Illinois taxes individual income at 4.95%, but an S corporation also has a 1.5% personal property replacement tax. The optional 4.95% PTET is a further election with owner credit mechanics, not a substitute for the replacement-tax layer.
Illinois makes the PTET election on a timely IL-1120-ST or IL-1065, including extensions. The regime is permanent; partnership tax-base changes for years ending on or after December 31, 2026 require care when comparing a partnership with an S corporation.
- Illinois DOR current income-tax rates (2026; 2026-09-12)
- Illinois DOR, PTET election FAQ (2026; 2026-08-30)
- Illinois DOR, pass-through information (2026; 2026-08-30)
- Illinois FY 2027-01 bulletin (2026; 2026-08-30)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
IndianaRead state analysis
Indiana
Back to comparison ↑Indiana’s 2026 state rate is 2.95%, with a scheduled 2.90% rate for 2027. County income tax is a separate owner cost, and the Indiana PTET does not cover the county layer.
Indiana allows the PTET election during the year or with the timely original return, including extensions, but not after the original return has already been filed. That sequencing can matter more than the relatively low state rate.
- Indiana DOR rates, fees and penalties (2026; 2026-09-12)
- Indiana DOR, PTET FAQ (2026; 2026-08-30)
- Indiana Information Bulletin 72B (2026; 2026-08-30)
- Indiana tax rates (2026; 2026-08-30)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
IowaRead state analysis
Iowa
Back to comparison ↑Iowa’s elective PTET is available in 2026: the Department removed the scheduled sunset after the 2025 federal law. Its owner-credit percentage is reduced by the elected-year PTET rate, reflecting the program’s interaction with the state deduction.
An Iowa S corporation can elect on IA 1120S or through GovConnectIowa. The election deadline is six months after the original return due date, while late-payment and estimated-payment obligations can arise sooner.
- Iowa DOR 2026 income-tax rate announcement (2026; 2026-09-12)
- Iowa DOR PTET FAQ, sunset removed and election/credit rules (2026; 2026-09-12)
- Iowa Code 2026 section 422.16C: election, rate cross-reference and refundable credit (2026; 2026-09-12)
- Iowa Code 2026 section 422.5: 3.8% individual rate (2026; 2026-09-12)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
KansasRead state analysis
Kansas
Back to comparison ↑Kansas did not meet its trigger for a 2026 income-tax rate cut. The highest individual rate remains 5.58%, which is also relevant to the SALT Parity elective rate rather than a presumed future reduction.
Kansas uses Form K-120S for the annual SALT Parity election. Trust ownership needs separate attention because an eligible trust generally cannot pass its PTET credit through to beneficiaries.
- Kansas DOR enacted individual tax schedule (2026; 2026-09-12)
- Kansas Notice 25-06: no 2026 rate reduction (2026; 2026-09-12)
- Kansas DOR, SALT parity FAQ (2026; 2026-08-30)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
KentuckyRead state analysis
Kentucky
Back to comparison ↑Kentucky’s 3.5% individual rate for 2026 does not remove its limited liability entity tax. Qualifying small entities generally pay the $175 LLET minimum; larger businesses compute the gross-receipts or gross-profits measure, with sector-specific cost-of-goods rules.
Kentucky LLET covers S corporations and LLCs while sole proprietorships and general partnerships generally lack that limited-liability tax treatment. The optional PTET and refundable qualifying-owner credit form a separate calculation.
- Kentucky DOR software developer tax-year updates (2026; 2026-09-12)
- Kentucky DOR, pass-through entities (2026; 2026-08-30)
- Kentucky Form 740-PTET (2026; 2026-08-30)
- Kentucky KRS 141.209: individual-rate election and 100% refundable credit (2026; 2026-09-12)
- Kentucky DOR limited liability entity tax (2026; 2026-09-12)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
LouisianaRead state analysis
Louisiana
Back to comparison ↑Louisiana’s elective PTE rate is 3% for periods beginning in 2025 and later. Unlike annual check-the-box regimes, the accepted election continues until termination, and termination generally creates a five-year re-election bar.
Louisiana uses Form R-6980 and Department acceptance for its continuing election. Owners receive an income exclusion rather than a dollar-for-dollar credit, making resident-state treatment and the tax base central to the comparison.
- Louisiana DOR individual income-tax reform rates (2026; 2026-09-12)
- Louisiana DOR, PTE election FAQ (2026; 2026-08-30)
- Louisiana DOR, elective PTE rate (2026; 2026-08-30)
- Louisiana Revenue Information Bulletin 23-022 (2026; 2026-08-30)
- Louisiana R.S.47:287.732.2 current elective entity rate and continuing election (2026; 2026-09-12)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
MaineRead state analysis
Maine
Back to comparison ↑Maine enacted an elective PTET in 2026 at 7.15%, with a refundable owner credit equal to 90% of the allocated tax. The new regime requires attention to implementation forms and the additional rules for certain nonresident members.
Maine’s new election should be evaluated alongside its new 2% high-income individual surcharge. A 90% credit is not a full refund of entity tax, and the remaining owner tax requires a combined calculation.
Source qualification: PTET: Payment arithmetic is supported by enacted law; implementation forms and filing procedures still need confirmation before an actual election.
- Maine Revenue Services revised 2026 individual rate schedules (2026; 2026-09-12)
- Maine Revenue Services, 2026 legislative changes (2026; 2026-08-30)
- Maine Legislature, enacted PTET text (2026; 2026-08-30)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
MarylandRead state analysis
Maryland
Back to comparison ↑Maryland’s 2026 PTET uses an 8.75% individual/fiduciary member rate and an 8.25% entity-member rate under the current alert. The 2026 base remains Maryland-source based, so ownership class and sourcing both affect the entity calculation.
For 2026, Maryland disregards the first-quarter election and honors the next filing or payment after April 15, generally the second estimate. Owners should reconcile the entity credit with county tax and any separate capital-gains surcharge.
Source qualification: PTET: 2027 base computation requires its own future-year guidance.
- Maryland Tax-General section 10-105 (2026; 2026-09-12)
- Maryland Tax Alert 13, April 2026 PTET changes (2026; 2026-09-12)
- Maryland 2026 PTET estimated-payment alert (2026; 2026-09-12)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
MassachusettsRead state analysis
Massachusetts
Back to comparison ↑Massachusetts has two elective PTE excises beginning in 2026: the existing 5% Chapter 63D regime and a separate Chapter 63E election tied to the 4% surtax. The elections and the owner-credit treatment should be reviewed together.
Massachusetts generally provides a refundable credit for 90% of allocated elective excise. A business owner facing the surtax needs the new Chapter 63E rules and transitional estimated-payment guidance, not only the older 5% election.
- Massachusetts DOR current tax rates (2026; 2026-09-12)
- Massachusetts DOR, elective PTE excise (2026; 2026-08-30)
- Massachusetts General Laws, Chapter 63E §2 (2026; 2026-08-30)
- Massachusetts DOR July 31, 2026: Chapter 63D/63E elections and 90% credits (2026; 2026-09-12)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
MichiganRead state analysis
Michigan
Back to comparison ↑Michigan confirmed its individual rate remains 4.25% in 2026. Its flow-through entity election generally lasts three tax years, which requires looking beyond the first year’s federal deduction.
A calendar-year Michigan entity generally elects by September 30 through Treasury Online. The multi-year commitment can matter when ownership, profitability or residence is expected to change.
- Michigan Treasury 2026 individual rate determination (2026; 2026-09-12)
- Michigan Treasury, flow-through entity tax FAQ (2026; 2026-08-30)
- Michigan Compiled Laws, Chapter 206 (2026; 2026-08-30)
- Michigan Treasury, 2026 individual rate (2026; 2026-08-30)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
MinnesotaRead state analysis
Minnesota
Back to comparison ↑Minnesota’s PTET uses 9.85%, which can exceed an owner’s average individual rate on the same income. Refundable credit mechanics and the qualifying-owner base are essential when deciding how much cash the entity must prepay.
Minnesota extended its elective regime only through tax year 2027. The qualifying-owner control test and the September 15 extended deadline for a calendar-year entity should be checked before treating the election as available.
- Minnesota DOR 2026 rates and brackets (2026; 2026-09-12)
- Minnesota DOR, pass-through entity tax (2026; 2026-08-30)
- Minnesota DOR, tax-law changes (2026; 2026-08-30)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
MississippiRead state analysis
Mississippi
Back to comparison ↑Mississippi’s 2026 individual rate is 4% above $10,000, but its elective PTE uses the business schedule: zero on the first $5,000, 4% on the next $5,000 and 5% above $10,000. The continuing election can therefore impose more state tax than the owner’s personal schedule before federal effects.
Mississippi uses Form 84-381 for the elective regime and generally requires more than 50% owner consent. Owners receive a pro rata credit and can elect a refund or carryforward of excess credit under the DOR FAQ. Regular S corporation franchise tax remains separate.
- Mississippi DOR general information, 2026 income tax (2026; 2026-09-12)
- Mississippi DOR, updated elective PTE FAQ (2026; 2026-09-12)
- Mississippi DOR 2025 PTE instructions: corporate-rate elective tax, not personal rate (2025; 2026-09-12)
- Mississippi DOR current business income and 2026 franchise rates (2026; 2026-09-12)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
MissouriRead state analysis
Missouri
Back to comparison ↑Missouri’s SALT Parity owner credit is nonrefundable and has an unlimited carryforward. That can make the timing of future Missouri income more important than the size of the immediate federal deduction.
An annual Missouri election can produce a credit that cannot be transferred to another taxpayer. Model how the actual owner will use the credit, especially when a sale or move could reduce future Missouri liability.
- Missouri DOR 2026 MO-1040ES tax rate chart (2026; 2026-09-12)
- Missouri DOR, SALT Parity Act FAQ (2026; 2026-08-30)
- Missouri DOR, entity tax FAQ (2026; 2026-08-30)
- Missouri Revised Statutes 143.436: highest-rate election and owner credit (2026; 2026-09-12)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
MontanaRead state analysis
Montana
Back to comparison ↑Montana’s 2026 ordinary upper rate and PTET rate are 5.65%, with another scheduled reduction for 2027. The election payment and extended filing deadline differ, so planning should use the tax year and payment date rather than the eventual filing month.
Montana permits a timely Form PTE election through extensions, generally September 15 for a calendar-year entity, but tax is generally due by the original March 15 deadline. The owner credit is refundable.
Source qualification: PTET: Entity eligibility can require judgment where an S corporation has instruments that may be treated as a second class of stock.
- Montana DOR HB 337 income-tax changes (2026; 2026-09-12)
- Montana DOR, pass-through entity tax (2026; 2026-08-30)
- Montana Form PTE instructions (2025; 2026-08-30)
- Montana Publication 1 to 2026 rates (2026; 2026-08-30)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
NebraskaRead state analysis
Nebraska
Back to comparison ↑Nebraska’s 2026 elective PTET rate is 4.55%, followed by 3.99% in 2027. The election is irrevocable for its year; an owner credit follows the entity’s payment, so the payment trail matters.
Nebraska allows a PTET-E election or the relevant entity-return election under current instructions. Distinguish the 2026 tax rate from the return’s filing year when forecasting owner distributions and estimates.
- Nebraska DOR 2026 Form 1040N-ES worksheet (2026; 2026-09-12)
- Nebraska DOR, PTET FAQ (2026; 2026-08-30)
- Nebraska DOR, PTET (2026; 2026-08-30)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
NevadaRead state analysis
Nevada
Back to comparison ↑Nevada’s general-business modified business tax is 1.17% on quarterly wages above $50,000 after allowed health-benefit deductions. A business with staff can therefore owe state payroll tax even though the owner owes no individual wage income tax.
Nevada Commerce Tax generally becomes relevant when Nevada gross revenue exceeds $4 million. That is revenue, not profit; a low-margin company and a high-margin consultancy with the same owner income may have different exposure.
- Nevada Department of Taxation tax notes (2026; 2026-09-12)
- Nevada DOR modified business tax (2026; 2026-09-12)
- Nevada DOR commerce tax FAQ (2026; 2026-09-12)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
New HampshireRead state analysis
New Hampshire
Back to comparison ↑New Hampshire has no individual wage tax, but its business profits tax is 7.5% and enterprise tax is 0.55% under current guidance. The BET base includes compensation, interest and dividends, and a BET credit can reduce BPT.
A New Hampshire S corporation requires a business-level model even when the shareholder wage-tax line is zero. Adding BPT and BET without the credit interaction can overstate tax; ignoring them can materially understate it.
- New Hampshire DRA interest and dividends tax repeal (2026; 2026-09-12)
- New Hampshire DRA business profits and enterprise taxes (2026; 2026-09-12)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
New JerseyRead state analysis
New Jersey
Back to comparison ↑New Jersey BAIT has its own graduated entity schedule, ending at 10.9% above $1 million of distributive proceeds. Its brackets differ from individual income-tax brackets, so multiplying each owner’s personal rate by K-1 income is not a BAIT calculation.
The New Jersey BAIT election is electronic and due by the original PTE-100 due date, generally March 15 after a calendar year. It cannot be made retroactively; a return filing extension does not extend that election deadline.
- New Jersey Treasury resident tax rate schedules, 2020 and after (2026; 2026-09-12)
- New Jersey Division of Taxation, BAIT (2026; 2026-08-30)
- New Jersey BAIT FAQ (2026; 2026-08-30)
- New Jersey PTE-150 instructions (2026; 2026-08-30)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
New MexicoRead state analysis
New Mexico
Back to comparison ↑New Mexico’s PTE election is annual, applies to all owners and is irrevocable once made. The rate references the higher relevant personal or corporate rate, so an owner’s average personal tax rate is not an entity-rate shortcut.
New Mexico owner relief is reported through the PTE procedures. The research does not promise universal refundability of excess credits; the owner’s form and classification must support that treatment.
Source qualification: PTET: No claim of universal refundability; owner credit use must be reconciled.
- New Mexico TRD 2025 tax expenditure report: 2025-and-later income schedule (2026; 2026-09-12)
- New Mexico TRD January 2026 SB60 analysis: current-law comparison table (2026; 2026-09-12)
- New Mexico TRD, pass-through entity tax (2026; 2026-08-30)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
New YorkRead state analysis
New York
Back to comparison ↑New York’s PTET election window is January 1 through March 15 of the tax year. That is much earlier than the following year’s income-return deadline; an entity can lose the opportunity before it knows its full-year profit.
New York’s PTET base and election rules distinguish eligible S corporations and partnerships, and owner residence affects the analysis. The refundable owner credit is not a reason to ignore the early election or separate city regimes.
- New York 2026 IT-2105-I estimate schedules and benefit-recapture worksheets (2026; 2026-09-12)
- New York Tax Department, PTET (2026; 2026-08-30)
- New York PTET FAQ (2026; 2026-08-30)
- New York TSB-M-21(1)C,(1)I (2026; 2026-08-30)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
North CarolinaRead state analysis
North Carolina
Back to comparison ↑North Carolina’s 2026 personal rate is 3.99%. An eligible taxed pass-through entity uses the applicable individual rate, while owner relief comes as a deduction/exclusion rather than a refundable PTET credit.
North Carolina’s timely entity-return election can extend with the return, but owner and entity eligibility restrictions remain important. A worksheet expecting a cash credit is the wrong model for this exclusion-based regime.
- North Carolina DOR individual rate schedules (2026; 2026-09-12)
- North Carolina DOR, elective PTET notice and FAQ (2026; 2026-08-30)
- North Carolina DOR: enacted 2026 3.99% rate and taxed-entity provisions (2023; 2026-09-12)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
North DakotaRead state analysis
North Dakota
Back to comparison ↑North Dakota imposes pass-through reporting and nonresident-owner withholding/composite procedures. A nonresident owner’s distributive share below $1,000 is one withholding exception; this does not establish an owner’s exemption from every filing or tax.
North Dakota provides composite filing and specific withholding exemption forms. Those procedures are not automatically an elective entity-level SALT workaround, and this research does not relabel them as a PTET program.
- North Dakota 2026 ND-1ES annual tax rate schedules (2026; 2026-09-12)
- North Dakota Tax Commissioner: S corporation and partnership income passes to owners (2026; 2026-09-12)
- North Dakota S corporation and partnership filing rules (2026; 2026-09-12)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
OhioRead state analysis
Ohio
Back to comparison ↑Ohio separates nonbusiness income from qualifying business income. The elective IT 4738 tax is 3%, while the 2026 ordinary wage formula uses 2.75% above its statutory threshold with a fixed starting amount.
An Ohio S corporation should reconcile IT 4738, the refundable owner credit and the owner’s business-income deduction. Municipal taxes and school-district income tax remain separate considerations.
- Ohio Revised Code chapter 5747, 2026 individual tax (2026; 2026-09-12)
- Ohio Revised Code §5747.38 (2026; 2026-08-30)
- Ohio Form IT 4738 instructions (2025; 2026-08-30)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
OklahomaRead state analysis
Oklahoma
Back to comparison ↑Oklahoma’s 2026 individual reform lowers the top rate to 4.5% and changes the lower bands. Its PTE tax can depend on owner classification, which makes an all-individual partnership different from an entity with corporate owners.
Oklahoma’s election generally continues until revoked and provides an owner income exclusion. The election/revocation process and applicable owner-class rate should be checked before treating it as a uniform annual credit election.
- Oklahoma Tax Commission 2025 legislative update, effective 2026 (2026; 2026-09-12)
- Oklahoma Tax Commission, business tax help (2026; 2026-08-30)
- Oklahoma OTC 2026 PTE estimated worksheet: individual and entity-member rates (2026; 2026-09-12)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
OregonRead state analysis
Oregon
Back to comparison ↑Oregon extended PTE-E through tax years beginning before January 1, 2028. The rate is 9% on the first $250,000 of distributive proceeds and 9.9% above; a legacy reference to expiration after 2025 is now outdated.
An Oregon S corporation doing business in the state generally has a $150 minimum excise tax in addition to any elective PTE-E analysis. For 2026 the first two PTE-E estimated installments are both due June 15 under the extension relief.
- Oregon Legislative Revenue Office 2026 personal tax schedule (2026; 2026-09-12)
- Oregon DOR PTE-E tax, 2026 extension and payment relief (2026; 2026-09-12)
- Oregon 2026 chapter 75, SB1510 extension through 2027 (2026; 2026-09-12)
- Oregon DOR corporate filing requirements and S corporation minimum tax (2026; 2026-09-12)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
PennsylvaniaRead state analysis
Pennsylvania
Back to comparison ↑Pennsylvania generally passes S corporation and partnership income to owners at its 3.07% personal rate. An S corporation’s recognized built-in gains can still trigger corporate net-income tax, so a former C corporation needs separate treatment.
Pennsylvania separates income classes and uses PA-20S/PA-65 reporting. An ordinary pass-through owner result cannot be created by applying the C corporation rate to all S corporation profit.
- Pennsylvania DOR 2026 REV-413 individual estimated tax (2026; 2026-09-12)
- Pennsylvania DOR: ordinary S corporation income is taxed to shareholders (2026; 2026-09-12)
- Pennsylvania DOR partnership, S corporation and LLC tax treatment (2026; 2026-09-12)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
Rhode IslandRead state analysis
Rhode Island
Back to comparison ↑Rhode Island’s PTET is 5.99%, while owner credits under post-2024 rules equal 90% of allocated entity tax. That credit reduction can offset part of the benefit of the federal deduction and belongs in a net-benefit analysis.
Rhode Island requires the entity election and owner addback under its return instructions. Universal refundability is not asserted here because the owner class and current form must support it.
Source qualification: PTET: The current source did not support a universal refundability label for every owner class.
- Rhode Island Division of Taxation 2026 inflation adjustments (2026; 2026-09-12)
- Rhode Island DOR July 2026 enacted-law summary: surtax starts in 2027 (2026; 2026-09-12)
- Rhode Island 2025 RI-1065 instructions (2025; 2026-08-30)
- Rhode Island 2025 Schedule K-1 instructions (2025; 2026-08-30)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
South CarolinaRead state analysis
South Carolina
Back to comparison ↑South Carolina’s 2026 individual reform changed both rates and the starting tax base. Its 3% elective entity tax covers qualifying active trade or business income, which is not the same category as all income reported on a pass-through return.
South Carolina gives an owner exclusion for income taxed at the entity level rather than a separate PTET credit. Passive and investment items should be screened separately from active operating income.
- South Carolina DOR H.4216 2026 income-tax reform (2026; 2026-09-12)
- South Carolina Information Letter 22-4 (2026; 2026-08-30)
- South Carolina Form SC1120I (2026; 2026-08-30)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
South DakotaRead state analysis
South Dakota
Back to comparison ↑South Dakota has no individual or corporate income tax, but its sales tax reaches many services as well as goods. An owner-operated service business should determine whether customer receipts are taxable and which municipal rules apply.
The South Dakota sales/use-tax system requires a new license when a business changes legal organization in specified ways. A federal S election does not answer whether the operating transaction or reorganization changes state registration.
- South Dakota DOR sales and use tax guide (2026; 2026-09-12)
- South Dakota DOR sales and use taxation of services (2026; 2026-09-12)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
TennesseeRead state analysis
Tennessee
Back to comparison ↑Tennessee can impose 6.5% excise tax on an entity’s Tennessee taxable income and 0.25% franchise tax on its net worth. The current excise standard deduction excludes up to $50,000 of net earnings, but the owner’s zero wage-tax line does not eliminate entity tax.
Tennessee includes corporations and LLCs within its franchise/excise system unless an exemption applies. A regular operating S corporation therefore needs net earnings, net worth and exemption facts, not just the shareholder’s wage amount.
- Tennessee DOR Hall income tax repeal (2026; 2026-09-12)
- Tennessee DOR franchise and excise rates (2026; 2026-09-12)
- Tennessee DOR entities subject to franchise and excise taxes (2026; 2026-09-12)
- Tennessee franchise and excise tax manual, standard deduction (2025; 2026-09-12)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
TexasRead state analysis
Texas
Back to comparison ↑Texas’s 2026 and 2027 franchise report no-tax-due threshold is $2.65 million of annualized total revenue. An entity below the threshold generally still files a Public Information or Ownership Information Report; profit alone does not determine the threshold.
Texas franchise tax follows its own taxable-entity and margin rules rather than federal S corporation pass-through treatment. Standard rates differ for qualifying retail/wholesale activity and other businesses.
- Texas Constitution article VIII section 24-a (2026; 2026-09-12)
- Texas Comptroller 2026 franchise report threshold and information filing (2026; 2026-09-12)
- Texas Comptroller franchise tax rates, 2026 and 2027 reports (2026; 2026-09-12)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
UtahRead state analysis
Utah
Back to comparison ↑Utah’s 2026 individual rate is 4.45%, and its SALT payment uses the individual rate for the same year. The state requires the electronic report and payment by the entity’s year-end, making this a cash-planning decision before return season.
Utah’s nonrefundable owner credit can carry forward up to ten years. All final individual taxpayers in the election are included; an owner with losses cannot simply opt out after the entity elects.
- Utah Tax Commission 2026 legislative summary (2026; 2026-09-12)
- Utah Tax Commission SALT report and tax FAQ (2026; 2026-09-12)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
VermontRead state analysis
Vermont
Back to comparison ↑Vermont generally charges a $250 minimum business entity tax on S corporations, partnerships and qualifying LLCs. Owner income passes through separately; the minimum tax is not a replacement for the owner’s personal income tax.
Vermont provides a simplified resident-only filing in qualifying cases and additional nonresident/composite procedures otherwise. Owner residence affects filing work, so one generic S corporation return assumption is insufficient.
- Vermont Joint Fiscal Office 2026 Fiscal Facts: personal income-tax brackets (2026; 2026-09-12)
- Vermont 32 VSA 5822: federal-AGI minimum tax (2026; 2026-09-12)
- Vermont Department of Taxes: resident-only entity returns and separate nonresident composite schedules (2026; 2026-09-12)
- Vermont Department of Taxes business entity income tax (2026; 2026-09-12)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
VirginiaRead state analysis
Virginia
Back to comparison ↑Virginia made its elective PTET permanent. The election uses a 5.75% entity rate with refundable owner credit mechanics, which should be compared with the owner’s regular progressive tax and other-state credits.
Virginia uses electronic Form 502PTET. A return extension, owner eligibility and payment obligations are separate checks; the federal S election by itself does not make the state elective payment.
- Virginia Tax individual income-tax computation (2026; 2026-09-12)
- Virginia Tax, PTET (2026; 2026-08-30)
- Virginia Tax, PTET filing information (2026; 2026-08-30)
- Virginia Tax Commissioner Ruling 24-1 (2026; 2026-08-30)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
WashingtonRead state analysis
Washington
Back to comparison ↑Washington’s B&O tax is based on taxable gross receipts under the relevant activity classification. Service businesses use 1.5%, 1.75% or 2.1% tiers determined by prior-year taxable service income, with exceptions for specified activities.
Washington generally applies B&O across legal forms, including S corporations and sole proprietors. A higher salary does not turn a gross-receipts tax into a net-profit tax, and city B&O can require a separate local review.
- Washington DOR individual income-tax FAQs (2026; 2026-09-12)
- Washington Governor: SB6346 income tax signed March 30, 2026; starts January 2028 (2026; 2026-09-12)
- Washington DOR service B&O rates and prior-year thresholds (2026; 2026-09-12)
- Washington DOR business tax classification definitions (2026; 2026-09-12)
- Washington DOR tiered capital-gains tax (2026; 2026-09-12)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
West VirginiaRead state analysis
West Virginia
Back to comparison ↑West Virginia’s elective PTE base includes resident-owner income and apportioned nonresident-owner income. The election replaces the ordinary nonresident withholding return for the elected year; owners use Schedule EK-1 as a credit document.
West Virginia makes the election through the filed PTE/EPT return and does not allow switching after the election. Its 2026 individual rate cut requires refreshing the EPT rate reference rather than continuing to use an older top-rate table.
- West Virginia Tax Division 2026 personal income-tax reduction (2026; 2026-09-12)
- West Virginia Tax Division, elective PTET (2026; 2026-09-12)
- West Virginia Code 11-21-3a: top-rate election and five-year owner carryforward (2026; 2026-09-12)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
WisconsinRead state analysis
Wisconsin
Back to comparison ↑Wisconsin’s elective entity rate is 7.9%, which can exceed the highest 7.65% individual ordinary rate. The benefit depends on the federal deduction and owner exclusion, so the election is not automatically a state-tax saving.
Wisconsin’s S corporation election uses Schedule 5S-ET with more than 50% shareholder consent. Owners exclude the income taxed at the entity level; they do not receive a separate dollar-for-dollar PTET credit.
- Wisconsin DOR 2026 Form 1-ES instructions (2026; 2026-09-12)
- Wisconsin DOR, pass-through entity tax FAQ (2026; 2026-08-30)
- Wisconsin Schedule 3-ET instructions (2025; 2026-08-30)
- Wisconsin Schedule 5S-ET instructions (2025; 2026-08-30)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
WyomingRead state analysis
Wyoming
Back to comparison ↑Wyoming has no individual or corporate income tax, but entities still face an annual license tax. The Secretary of State computes it from Wyoming assets, with a $60 minimum or $0.0002 per dollar of qualifying assets, whichever is greater.
Wyoming’s license tax uses assets located and employed in the state rather than owner salary or net profit. A $500,000 profit assumption alone cannot determine the fee for an asset-heavy business.
- State of Wyoming tax overview (2026; 2026-09-12)
- Wyoming Secretary of State annual license tax (2026; 2026-09-12)
- Census ACS housing, rent and property-tax data
- NAIC 2023 homeowner premium table
Taxstra methodologyScoring factors, weights, research profiles and limitations.
How Taxstra grades each state out of 10
We score every state using the same rules. Costs and financial factors make up 90% of the overall score, and WalletHub’s Quality of Life category makes up 10%. Each category tile shows how much it counts. Tiles marked “Not in overall score” offer extra context without changing the ranking.
What counts toward the score
- State tax on $500K of taxable business income: 30% of the financial share
- Cost of hiring employees: 40% of the financial share
- Everyday living costs: 30% of the financial share
What does a score out of 10 mean?
For financial categories, 10 is the strongest result in the comparison and 1 is the weakest. Lower costs generally score better; higher pay scores better. A 7.9 is a comparison tool, not a promise about your finances.
Why can scores and ranks look different?
Cards show one decimal place, while rankings use two. Two states can both display 7.9 and still have slightly different ranks. States with the same ranking value share a rank.
Which WalletHub ranking do we use?
We use WalletHub’s Quality of Life category, not its overall ranking. For example, Illinois is fifth for Quality of Life and eighteenth overall in the cited study. Those are two different measures.
What if information is missing?
We leave it missing instead of guessing. If a required factor is unavailable, we label the score provisional and do not give it an overall rank.
Technical formulas and source definitions
Owner tax uses a separate $500K state-taxable ordinary-business base. Labor-market wages and household prices are other inputs. The five-worker wage benchmark is not the separate $500K employee-payroll scenario. Entity and payroll taxes are itemized separately, not silently assumed zero.
- Financial categories: actual measurement spread
- The most favorable observed value receives 10 and the least favorable receives 1. Intermediate grades are scaled linearly between them: 1 + 9 × the favorable share of the observed range. Lower costs score higher; higher pay scores higher. If every observation is identical, each receives 5.5. These relative grades do not have a universal pass/fail cutoff. Extreme observations can widen the range and compress other grades. We do not narrow a genuine gap just to produce a tighter leaderboard; a change to a source population must have a documented measurement reason. The STR grade is a regional spending-cost screen. Hotel employment is excluded from its score because hotel jobs do not measure residential STR demand; actual occupancy and booking revenue require local property research.
- Malpractice and rental taxes: defined samples
- The physician index weights CMS county malpractice-cost observations by their malpractice RVUs within each state. It uses the underlying 2026 update, based on 2023 premiums and RVUs, before Medicare payment adjustments. State-specific specialty mix, missing insurer types and CMS imputation limit its use as a quote comparison. Apartment-tax comparisons hold building and fixture values constant and average the study’s named urban and rural municipalities equally. Including both reduces dependence on one city; it still does not represent all localities. They are neither statewide tax rates nor single-family STR bills.
- Quality of life: the source category, not the overall WalletHub rank
- We use the quality-of-life category of WalletHub’s 2026 state study, published August 10, 2026. Taxstra converts its rank to a grade using 1 + 9 × (50 − rank) / 49. The publisher’s category includes amenities, mobility, leisure, weather and environmental conditions. WalletHub’s overall ranking also includes affordability, economy, education and health, and safety. We use its narrower quality-of-life category as an amenities and daily-life input; our financial factors already measure costs separately. For example, Illinois is #5 in that category and #18 overall in WalletHub. Taxstra’s own guide ranking is a third, separately calculated result. Differences in these rank-based grades are not measured differences in happiness.
- Overall grade and rank
- Multiply each unrounded component grade by its published weight, add the results, then display one decimal place. Round the composite to two decimals for ranking and retain genuine ties at that precision. Cards display one decimal for readability; two cards displaying 7.9 can therefore have different positions. The table tooltip and downloadable dataset include the ranking value. For example, financial 6.0 and quality of life 9.0 produce 6.6 at 80% financial / 20% quality-of-life weights. Direct tax and deduction comparisons rank their displayed dollar outcomes and show a separate normalized category grade.
- Incomplete evidence
- Unavailable category data receives no grade. When a weighted component is missing, the remaining components are reweighted and the card labels the result provisional, shows evidence coverage and excludes it from the overall rank. The presence of a numeric provisional grade is not evidence that the missing category was measured.
- What a grade does not claim
- These are screening grades, not completed all-factor tax or legal rankings. The named tax benchmarks and CMS malpractice-cost index are included only where the displayed weights say so. Full-return taxes, individual insurance quotes and legal-policy judgments remain separate. A high amenities grade does not mean that everyone prefers the state. Family ties, local neighborhoods, climate preferences and a particular job can outweigh statewide observations.
For investment guides, livability describes market context; it does not forecast rent growth or returns and does not assume that the investor lives in the property’s state. In guides about tax bills, the tax calculations stay separate from lifestyle grades.
Research examples and calculation assumptions
Taxstra's research profiles
A useful comparison holds the household and property constant. These are the exact starting profiles for the tax research; a scenario is not a completed tax estimate unless its result is explicitly shown.
- Physician employment
- $500,000 in wages, one earner, no dependents, no elective retirement contributions. Married filing jointly and single results are separate. The score’s separate tax sensitivity uses $500,000 of state taxable wage income with state AGI equal to that base; it is not a gross-to-taxable return calculation. Compensation observations use the BLS occupation specified beside the result and exclude self-employment.
- Contracting and business ownership
- $500,000 of profit before owner compensation. An S-corp example tests a $250,000 owner wage; that is a sensitivity assumption, not a reasonable-compensation opinion. The separate employee-payroll example is five employees at $100,000 each. Employee wages already included in operating expenses are never deducted twice.
- Retirement
- Both spouses are 67, married filing jointly, receiving $120,000 from traditional retirement accounts, $60,000 in private pensions, $60,000 in Social Security, $30,000 in ordinary investment income and $30,000 in long-term capital gains. Each spouse receives half. Total cash income is $300,000; taxable income depends on the income category and applicable rules. Full-year residents. Qualified traditional distributions; employer-funded defined-benefit pension; 401(k) entirely employee elective deferrals with no employer contributions; IRA entirely self-funded with no exempt pension rollover; Pennsylvania-eligible retirement distributions after retirement. Exclusions are applied to qualifying plan income first where several income categories are eligible. No federal or state tax bill is estimated.
- Property acquisition
- A debt-free $1 million purchase, with $200,000 allocated to land. The long-term rental example assumes $90,000 of rent and $30,000 of expenses before property tax, insurance and depreciation. The STR example assumes $150,000 of bookings and $75,000 of expenses on the same basis. These are research starting profiles, not market forecasts. The standardized scored apartment example is different: $600,000 land and building plus $30,000 fixtures, with the same values across named municipalities. The STR worked example uses a separately labeled fixed property scenario. It does not change the statewide ranking or represent forecast bookings.
- Depreciation
- A sensitivity considers an additional $100,000 deduction that the taxpayer can currently use. An addback can defer a state benefit even when federal expensing is available. A current deduction, a future recovery and a permanent tax reduction are different results.
- State and local scope
- Property location and owner residence are separate inputs. There is no assumed “average” local income tax. A combined state/local result needs a named locality and its resident or nonresident rules. Figures explicitly labeled state-only exclude local tax.
How to reproduce a comparison
- Choose the named measure and its source year.
- Apply the formula displayed beside the map to the source observation for each state.
- Round money to whole dollars, ratios to two decimal places and grades to one decimal place. Rank in the direction stated by the measure: the tax-penalty guide places the largest burden first, while its tax-cost grade still rewards a lower bill. Changing display order does not change a state’s rank.
- Give equal ranking values the same competition rank (composites use two decimals; cards show one). After a tie, skip the occupied positions.
- Leave suppressed or unavailable observations unranked. Retain the state in the table and describe the gap.
A price-adjusted wage, a homeowner tax bill and a lodging-employment concentration answer different questions. The balanced view explicitly combines the guide’s named financial factors with livability at the displayed weights. Other categories provide context. A favorable legal policy is not treated as a measured dollar saving. Material modeling assumptions require review before a full financial ranking is released.
The financial profiles are a $500,000 W-2 household, a business with $500,000 profit before owner compensation, a five-person $500,000 payroll, and a married age-67 household with $300,000 of mixed retirement and investment income. Investor examples assume the purchase location is separate from the owner’s residence.
These scenarios define the research questions. Unless a completed calculation is explicitly shown, a profile is not an estimated return. Tax sensitivities use separately supplied state-taxable wage or ordinary-business bases, exclude local tax and do not replace full-return calculations. We do not calculate with unverified secondary-source schedules.
Published survey estimates have sampling error. We preserve available Census margins of error and BLS relative errors in the source data. Small apparent differences should not be treated as certainty. A comprehensive state decision still requires the actual locality, household, property, employer and coverage terms.
Sources and measurement datesOriginal datasets, primary authority, verification dates and downloadable research.
Download the published 50-state dataset (CSV) · Dataset definitions and coverage
Economic observations were retrieved September 12, 2026. Measurement years differ because the agencies publish on different schedules. Existing retirement rules retain their August 4, 2026 review date; existing PTET and depreciation research retain August 30, 2026. Unresolved entries remain identified.
- Alabama DOR individual tax ratesSource year / applicable rules: 2026 · Verified 2026-09-12
- BLS OEWS state wage estimatesSource year / applicable rules: 2025 · Retrieved 2026-09-12
- BEA regional price parities, via FREDSource year / applicable rules: 2024 · Retrieved 2026-09-12
- WalletHub 2026 quality-of-life categorySource year / applicable rules: 2026 · Retrieved 2026-09-12
The Quality of Life Rank column, not Overall Rank. Overall also includes affordability, economy, education and health, and safety. Illinois is #5 in the quality-of-life category and #18 overall. Category ranks are converted to Taxstra grades; overall ranks are shown only for source context.
- Alaska government tax factsSource year / applicable rules: 2026 · Verified 2026-09-12
- Arizona DOR individual withholding and tax rateSource year / applicable rules: 2026 · Verified 2026-09-12
- Arkansas DFA 2026 special-session SB1 fiscal impactSource year / applicable rules: 2026 · Verified 2026-09-12
- Arkansas SB1, Act 2 of the 2026 special sessionSource year / applicable rules: 2026 · Verified 2026-09-12
- California FTB September 3, 2026 indexing memorandum, Attachment 2 (CalTax-hosted copy)Source year / applicable rules: 2026 · Verified 2026-09-12
- California FTB 2025 Publication 1067: individual-return 1% tax on excess over $1 millionSource year / applicable rules: 2026 · Verified 2026-09-12
- Colorado 2026 DR 0104EP estimate worksheetSource year / applicable rules: 2026 · Verified 2026-09-12
- Connecticut 2026 CT-1040ES: initial tax, 2% phaseout and recapture tablesSource year / applicable rules: 2026 · Verified 2026-09-12
- Delaware DOR employer guide, income computation tableSource year / applicable rules: 2026 · Verified 2026-09-12
- Florida DOR individual income-tax FAQSource year / applicable rules: 2026 · Verified 2026-09-12
- Georgia DOR important tax updates, 2026Source year / applicable rules: 2026 · Verified 2026-09-12
- Hawaii Department of Taxation tax-year rate tablesSource year / applicable rules: 2026 · Verified 2026-09-12
- Hawaii tax tables for years after December 31, 2024Source year / applicable rules: 2026 · Verified 2026-09-12
- Idaho Code 63-3024: 5.3% rate and statutory CPI indexingSource year / applicable rules: 2026 · Verified 2026-09-12
- BLS CPI-U U.S. city average: 2025 annual average 321.943Source year / applicable rules: 2025 · Verified 2026-09-12
- BLS historical CPI-U: 1998 annual average 163.0Source year / applicable rules: 1998 · Verified 2026-09-12
- Idaho Commission published annual tables: latest posted year 2025Source year / applicable rules: 2025 · Verified 2026-09-12
- BLS archived CPI files: October 2025 data unavailable during funding lapseSource year / applicable rules: 2025 · Verified 2026-09-12
- Illinois DOR current income-tax ratesSource year / applicable rules: 2026 · Verified 2026-09-12
- Indiana DOR rates, fees and penaltiesSource year / applicable rules: 2026 · Verified 2026-09-12
- Iowa DOR 2026 income-tax rate announcementSource year / applicable rules: 2026 · Verified 2026-09-12
- Kansas DOR enacted individual tax scheduleSource year / applicable rules: 2026 · Verified 2026-09-12
- Kansas Notice 25-06: no 2026 rate reductionSource year / applicable rules: 2026 · Verified 2026-09-12
- Kentucky DOR software developer tax-year updatesSource year / applicable rules: 2026 · Verified 2026-09-12
- Louisiana DOR individual income-tax reform ratesSource year / applicable rules: 2026 · Verified 2026-09-12
- Maine Revenue Services revised 2026 individual rate schedulesSource year / applicable rules: 2026 · Verified 2026-09-12
- Maryland Tax-General section 10-105Source year / applicable rules: 2026 · Verified 2026-09-12
- Massachusetts DOR current tax ratesSource year / applicable rules: 2026 · Verified 2026-09-12
- Michigan Treasury 2026 individual rate determinationSource year / applicable rules: 2026 · Verified 2026-09-12
- Minnesota DOR 2026 rates and bracketsSource year / applicable rules: 2026 · Verified 2026-09-12
- Mississippi DOR general information, 2026 income taxSource year / applicable rules: 2026 · Verified 2026-09-12
- Missouri DOR 2026 MO-1040ES tax rate chartSource year / applicable rules: 2026 · Verified 2026-09-12
- Montana DOR HB 337 income-tax changesSource year / applicable rules: 2026 · Verified 2026-09-12
- Nebraska DOR 2026 Form 1040N-ES worksheetSource year / applicable rules: 2026 · Verified 2026-09-12
- Nevada Department of Taxation tax notesSource year / applicable rules: 2026 · Verified 2026-09-12
- New Hampshire DRA interest and dividends tax repealSource year / applicable rules: 2026 · Verified 2026-09-12
- New Jersey Treasury resident tax rate schedules, 2020 and afterSource year / applicable rules: 2026 · Verified 2026-09-12
- New Mexico TRD 2025 tax expenditure report: 2025-and-later income scheduleSource year / applicable rules: 2026 · Verified 2026-09-12
- New Mexico TRD January 2026 SB60 analysis: current-law comparison tableSource year / applicable rules: 2026 · Verified 2026-09-12
- New York 2026 IT-2105-I estimate schedules and benefit-recapture worksheetsSource year / applicable rules: 2026 · Verified 2026-09-12
- North Carolina DOR individual rate schedulesSource year / applicable rules: 2026 · Verified 2026-09-12
- North Dakota 2026 ND-1ES annual tax rate schedulesSource year / applicable rules: 2026 · Verified 2026-09-12
- Ohio Revised Code chapter 5747: business deduction and distinct 3% rateSource year / applicable rules: 2026 · Verified 2026-09-12
- Oklahoma Tax Commission 2025 legislative update, effective 2026Source year / applicable rules: 2026 · Verified 2026-09-12
- Oregon Legislative Revenue Office 2026 personal tax scheduleSource year / applicable rules: 2026 · Verified 2026-09-12
- Pennsylvania DOR 2026 REV-413 individual estimated taxSource year / applicable rules: 2026 · Verified 2026-09-12
- Rhode Island Division of Taxation 2026 inflation adjustmentsSource year / applicable rules: 2026 · Verified 2026-09-12
- Rhode Island DOR July 2026 enacted-law summary: surtax starts in 2027Source year / applicable rules: 2026 · Verified 2026-09-12
- South Carolina DOR H.4216 2026 income-tax reformSource year / applicable rules: 2026 · Verified 2026-09-12
- South Dakota DOR sales and use tax guideSource year / applicable rules: 2026 · Verified 2026-09-12
- Tennessee DOR Hall income tax repealSource year / applicable rules: 2026 · Verified 2026-09-12
- Texas Constitution article VIII section 24-aSource year / applicable rules: 2026 · Verified 2026-09-12
- Utah Tax Commission 2026 legislative summarySource year / applicable rules: 2026 · Verified 2026-09-12
- Vermont Joint Fiscal Office 2026 Fiscal Facts: personal income-tax bracketsSource year / applicable rules: 2026 · Verified 2026-09-12
- Vermont 32 VSA 5822: federal-AGI minimum taxSource year / applicable rules: 2026 · Verified 2026-09-12
- Virginia Tax individual income-tax computationSource year / applicable rules: 2026 · Verified 2026-09-12
- Washington DOR individual income-tax FAQsSource year / applicable rules: 2026 · Verified 2026-09-12
- Washington Governor: SB6346 income tax signed March 30, 2026; starts January 2028Source year / applicable rules: 2026 · Verified 2026-09-12
- West Virginia Tax Division 2026 personal income-tax reductionSource year / applicable rules: 2026 · Verified 2026-09-12
- Wisconsin DOR 2026 Form 1-ES instructionsSource year / applicable rules: 2026 · Verified 2026-09-12
- State of Wyoming tax overviewSource year / applicable rules: 2026 · Verified 2026-09-12
- Alabama Department of Revenue, electing pass-through entitiesSource year / applicable rules: 2026 · Verified 2026-08-30
- Arizona Publication 713, elective PTETSource year / applicable rules: 2026 · Verified 2026-08-30
- Arizona 2026 Form 120-PTE-WSource year / applicable rules: 2026 · Verified 2026-08-30
- Arkansas DFA, pass-through entity taxSource year / applicable rules: 2026 · Verified 2026-08-30
- Arkansas elective PTET ruleSource year / applicable rules: 2026 · Verified 2026-08-30
- California FTB, pass-through entity elective taxSource year / applicable rules: 2026 · Verified 2026-08-30
- California FTB S corporation tax and minimum taxSource year / applicable rules: 2026 · Verified 2026-09-12
- Colorado DOR, SALT Parity Act guidanceSource year / applicable rules: 2025 · Verified 2026-08-30
- Colorado 2026 Form DR 1705Source year / applicable rules: 2026 · Verified 2026-08-30
- Connecticut DRS current elective PTE eligibility, election and paymentsSource year / applicable rules: 2026 · Verified 2026-09-12
- Connecticut CT-PET December 2025 instructions: 6.99% tax and 87.5% owner creditSource year / applicable rules: 2025 · Verified 2026-09-12
- Connecticut General Assembly February 2026 tax expenditure report: PTE rate and creditSource year / applicable rules: 2026 · Verified 2026-09-12
- Delaware DOR: S corporation income passes to shareholders; nonresident estimated payments are personal taxSource year / applicable rules: 2026 · Verified 2026-09-12
- Delaware DOR gross receipts tax FAQSource year / applicable rules: 2026 · Verified 2026-09-12
- Delaware DOR LLC tax classificationSource year / applicable rules: 2026 · Verified 2026-09-12
- Florida DOR corporate income tax and S corporation filing exceptionsSource year / applicable rules: 2026 · Verified 2026-09-12
- Georgia DOR 2024 enacted legislation: HB1023 aligns electing entity and individual ratesSource year / applicable rules: 2024 · Verified 2026-09-12
- Georgia Rule 560-7-3-.03, PTE election and owner exclusionSource year / applicable rules: 2026 · Verified 2026-09-12
- Hawaii Department of Taxation PTE rate, election and owner creditSource year / applicable rules: 2026 · Verified 2026-09-12
- Idaho State Tax Commission, pass-through entitiesSource year / applicable rules: 2026 · Verified 2026-08-30
- Idaho, 2026 ABE election-timing changeSource year / applicable rules: 2026 · Verified 2026-08-30
- Idaho Tax Commission business income tax rateSource year / applicable rules: 2026 · Verified 2026-09-12
- Illinois DOR, PTET election FAQSource year / applicable rules: 2026 · Verified 2026-08-30
- Illinois DOR, pass-through informationSource year / applicable rules: 2026 · Verified 2026-08-30
- Illinois FY 2027-01 bulletinSource year / applicable rules: 2026 · Verified 2026-08-30
- Indiana DOR, PTET FAQSource year / applicable rules: 2026 · Verified 2026-08-30
- Indiana Information Bulletin 72BSource year / applicable rules: 2026 · Verified 2026-08-30
- Indiana tax ratesSource year / applicable rules: 2026 · Verified 2026-08-30
- Iowa DOR PTET FAQ, sunset removed and election/credit rulesSource year / applicable rules: 2026 · Verified 2026-09-12
- Iowa Code 2026 section 422.16C: election, rate cross-reference and refundable creditSource year / applicable rules: 2026 · Verified 2026-09-12
- Iowa Code 2026 section 422.5: 3.8% individual rateSource year / applicable rules: 2026 · Verified 2026-09-12
- Kansas DOR, SALT parity FAQSource year / applicable rules: 2026 · Verified 2026-08-30
- Kentucky DOR, pass-through entitiesSource year / applicable rules: 2026 · Verified 2026-08-30
- Kentucky Form 740-PTETSource year / applicable rules: 2026 · Verified 2026-08-30
- Kentucky KRS 141.209: individual-rate election and 100% refundable creditSource year / applicable rules: 2026 · Verified 2026-09-12
- Kentucky DOR limited liability entity taxSource year / applicable rules: 2026 · Verified 2026-09-12
- Louisiana DOR, PTE election FAQSource year / applicable rules: 2026 · Verified 2026-08-30
- Louisiana DOR, elective PTE rateSource year / applicable rules: 2026 · Verified 2026-08-30
- Louisiana Revenue Information Bulletin 23-022Source year / applicable rules: 2026 · Verified 2026-08-30
- Louisiana R.S.47:287.732.2 current elective entity rate and continuing electionSource year / applicable rules: 2026 · Verified 2026-09-12
- Maine Revenue Services, 2026 legislative changesSource year / applicable rules: 2026 · Verified 2026-08-30
- Maine Legislature, enacted PTET textSource year / applicable rules: 2026 · Verified 2026-08-30
- Maryland Tax Alert 13, April 2026 PTET changesSource year / applicable rules: 2026 · Verified 2026-09-12
- Maryland 2026 PTET estimated-payment alertSource year / applicable rules: 2026 · Verified 2026-09-12
- Massachusetts DOR, elective PTE exciseSource year / applicable rules: 2026 · Verified 2026-08-30
- Massachusetts General Laws, Chapter 63E §2Source year / applicable rules: 2026 · Verified 2026-08-30
- Massachusetts DOR July 31, 2026: Chapter 63D/63E elections and 90% creditsSource year / applicable rules: 2026 · Verified 2026-09-12
- Michigan Treasury, flow-through entity tax FAQSource year / applicable rules: 2026 · Verified 2026-08-30
- Michigan Compiled Laws, Chapter 206Source year / applicable rules: 2026 · Verified 2026-08-30
- Michigan Treasury, 2026 individual rateSource year / applicable rules: 2026 · Verified 2026-08-30
- Minnesota DOR, pass-through entity taxSource year / applicable rules: 2026 · Verified 2026-08-30
- Minnesota DOR, tax-law changesSource year / applicable rules: 2026 · Verified 2026-08-30
- Mississippi DOR, updated elective PTE FAQSource year / applicable rules: 2026 · Verified 2026-09-12
- Mississippi DOR 2025 PTE instructions: corporate-rate elective tax, not personal rateSource year / applicable rules: 2025 · Verified 2026-09-12
- Mississippi DOR current business income and 2026 franchise ratesSource year / applicable rules: 2026 · Verified 2026-09-12
- Missouri DOR, SALT Parity Act FAQSource year / applicable rules: 2026 · Verified 2026-08-30
- Missouri DOR, entity tax FAQSource year / applicable rules: 2026 · Verified 2026-08-30
- Missouri Revised Statutes 143.436: highest-rate election and owner creditSource year / applicable rules: 2026 · Verified 2026-09-12
- Montana DOR, pass-through entity taxSource year / applicable rules: 2026 · Verified 2026-08-30
- Montana Form PTE instructionsSource year / applicable rules: 2025 · Verified 2026-08-30
- Montana Publication 1 to 2026 ratesSource year / applicable rules: 2026 · Verified 2026-08-30
- Nebraska DOR, PTET FAQSource year / applicable rules: 2026 · Verified 2026-08-30
- Nebraska DOR, PTETSource year / applicable rules: 2026 · Verified 2026-08-30
- Nevada DOR modified business taxSource year / applicable rules: 2026 · Verified 2026-09-12
- Nevada DOR commerce tax FAQSource year / applicable rules: 2026 · Verified 2026-09-12
- New Hampshire DRA business profits and enterprise taxesSource year / applicable rules: 2026 · Verified 2026-09-12
- New Jersey Division of Taxation, BAITSource year / applicable rules: 2026 · Verified 2026-08-30
- New Jersey BAIT FAQSource year / applicable rules: 2026 · Verified 2026-08-30
- New Jersey PTE-150 instructionsSource year / applicable rules: 2026 · Verified 2026-08-30
- New Mexico TRD, pass-through entity taxSource year / applicable rules: 2026 · Verified 2026-08-30
- New York Tax Department, PTETSource year / applicable rules: 2026 · Verified 2026-08-30
- New York PTET FAQSource year / applicable rules: 2026 · Verified 2026-08-30
- New York TSB-M-21(1)C,(1)ISource year / applicable rules: 2026 · Verified 2026-08-30
- North Carolina DOR, elective PTET notice and FAQSource year / applicable rules: 2026 · Verified 2026-08-30
- North Carolina DOR: enacted 2026 3.99% rate and taxed-entity provisionsSource year / applicable rules: 2023 · Verified 2026-09-12
- North Dakota Tax Commissioner: S corporation and partnership income passes to ownersSource year / applicable rules: 2026 · Verified 2026-09-12
- North Dakota S corporation and partnership filing rulesSource year / applicable rules: 2026 · Verified 2026-09-12
- Ohio Revised Code chapter 5747, 2026 individual taxSource year / applicable rules: 2026 · Verified 2026-09-12
- Ohio Revised Code §5747.38Source year / applicable rules: 2026 · Verified 2026-08-30
- Ohio Form IT 4738 instructionsSource year / applicable rules: 2025 · Verified 2026-08-30
- Oklahoma Tax Commission, business tax helpSource year / applicable rules: 2026 · Verified 2026-08-30
- Oklahoma OTC 2026 PTE estimated worksheet: individual and entity-member ratesSource year / applicable rules: 2026 · Verified 2026-09-12
- Oregon DOR PTE-E tax, 2026 extension and payment reliefSource year / applicable rules: 2026 · Verified 2026-09-12
- Oregon 2026 chapter 75, SB1510 extension through 2027Source year / applicable rules: 2026 · Verified 2026-09-12
- Oregon DOR corporate filing requirements and S corporation minimum taxSource year / applicable rules: 2026 · Verified 2026-09-12
- Pennsylvania DOR: ordinary S corporation income is taxed to shareholdersSource year / applicable rules: 2026 · Verified 2026-09-12
- Pennsylvania DOR partnership, S corporation and LLC tax treatmentSource year / applicable rules: 2026 · Verified 2026-09-12
- Rhode Island 2025 RI-1065 instructionsSource year / applicable rules: 2025 · Verified 2026-08-30
- Rhode Island 2025 Schedule K-1 instructionsSource year / applicable rules: 2025 · Verified 2026-08-30
- South Carolina Information Letter 22-4Source year / applicable rules: 2026 · Verified 2026-08-30
- South Carolina Form SC1120ISource year / applicable rules: 2026 · Verified 2026-08-30
- South Dakota DOR sales and use taxation of servicesSource year / applicable rules: 2026 · Verified 2026-09-12
- Tennessee DOR franchise and excise ratesSource year / applicable rules: 2026 · Verified 2026-09-12
- Tennessee DOR entities subject to franchise and excise taxesSource year / applicable rules: 2026 · Verified 2026-09-12
- Tennessee franchise and excise tax manual, standard deductionSource year / applicable rules: 2025 · Verified 2026-09-12
- Texas Comptroller 2026 franchise report threshold and information filingSource year / applicable rules: 2026 · Verified 2026-09-12
- Texas Comptroller franchise tax rates, 2026 and 2027 reportsSource year / applicable rules: 2026 · Verified 2026-09-12
- Utah Tax Commission SALT report and tax FAQSource year / applicable rules: 2026 · Verified 2026-09-12
- Vermont Department of Taxes: resident-only entity returns and separate nonresident composite schedulesSource year / applicable rules: 2026 · Verified 2026-09-12
- Vermont Department of Taxes business entity income taxSource year / applicable rules: 2026 · Verified 2026-09-12
- Virginia Tax, PTETSource year / applicable rules: 2026 · Verified 2026-08-30
- Virginia Tax, PTET filing informationSource year / applicable rules: 2026 · Verified 2026-08-30
- Virginia Tax Commissioner Ruling 24-1Source year / applicable rules: 2026 · Verified 2026-08-30
- Washington DOR service B&O rates and prior-year thresholdsSource year / applicable rules: 2026 · Verified 2026-09-12
- Washington DOR business tax classification definitionsSource year / applicable rules: 2026 · Verified 2026-09-12
- Washington DOR tiered capital-gains taxSource year / applicable rules: 2026 · Verified 2026-09-12
- West Virginia Tax Division, elective PTETSource year / applicable rules: 2026 · Verified 2026-09-12
- West Virginia Code 11-21-3a: top-rate election and five-year owner carryforwardSource year / applicable rules: 2026 · Verified 2026-09-12
- Wisconsin DOR, pass-through entity tax FAQSource year / applicable rules: 2026 · Verified 2026-08-30
- Wisconsin Schedule 3-ET instructionsSource year / applicable rules: 2025 · Verified 2026-08-30
- Wisconsin Schedule 5S-ET instructionsSource year / applicable rules: 2025 · Verified 2026-08-30
- Wyoming Secretary of State annual license taxSource year / applicable rules: 2026 · Verified 2026-09-12
- Census ACS 1-year: B25077, B25103, B25064Source year / applicable rules: 2024 · Retrieved 2026-09-12
- NAIC homeowners report, HO-3 average premiumsSource year / applicable rules: 2023 · Retrieved 2026-09-12
The Census property-tax figure is a median dollar bill on owner-occupied homes, not a tax rate on rentals. BLS physician wages exclude self-employment. NAIC premiums describe owner-occupied HO-3 policies. CMS healthcare spending includes several payers and all ages. BLS accommodation employment includes hotels and other lodging; it is not STR revenue.
State-specific primary-authority links appear with each state. A source listed for one tax category does not verify a different category.
Common questions
Does no personal income tax mean no business tax?
No. The state records identify separate operating-company taxes and the inputs they need. A zero wage-tax benchmark cannot be used as a zero entity-tax estimate.
Is the staffing estimate part of the $500,000 profit?
The operating scenario defines profit after non-owner expenses, including its fixed $500,000 employee payroll. That payroll is not deducted a second time. The score uses a different labor-market observation: five times the state mean occupational wage. It is not the same input as the fixed payroll scenario.
Why include livability when choosing a business location?
The owner’s household and the workforce both matter. A low-cost location may be less useful if it does not fit your hiring needs, customers or family. Compare the named labor-cost measure with the quality-of-life component and your actual business requirements.
Is the five-worker benchmark a payroll-tax calculation?
No. It is five times the statewide all-occupation mean wage. It provides labor-market context and does not calculate employer taxes, benefit costs or wages for five specified roles.
Should a remote business move to the highest-ranked state?
A ranking alone is insufficient. Review where the owner and employees work, where customers are served and how relocation would affect operations. Use the comparison to develop questions rather than assuming a move changes every obligation.
What documents make a business-location comparison useful?
Bring current financial statements, expected owner compensation, employee work locations, revenue by state and the proposed move. Those facts make a tax and operating-cost comparison more useful than a headline state ranking.
Why can the WalletHub rank differ from the rank on this card?
The card identifies WalletHub’s Quality of Life category rank. The linked study also has a separate Overall Rank column that incorporates affordability, economy, education and health, and safety. Illinois is #5 in Quality of Life but #18 overall in the 2026 WalletHub study. Taxstra’s headline rank combines the named financial factors with that quality-of-life category using our published weights; it is not WalletHub’s overall ranking.
Can readers customize the published ranking?
No. Each guide uses one fixed methodology and the same assumptions for every state. State search, map selection, shared links and embedded cards all use that published ranking. Separate financial examples explain the assumptions without changing the leaderboard.
How does Taxstra include livability in the ranking?
Composite guides combine their named financial factors with WalletHub’s Quality of Life category at fixed, guide-specific weights: 80% financial and 20% quality of life for physician and retirement composites; 90% financial and 10% quality of life for business and property composites. Direct tax, PTET and depreciation comparisons do not include quality of life in their ranking. Everyone sees the same ranking; choosing a state changes the displayed card, not the methodology. The score is a comparison tool, not an estimate of happiness or a completed tax return.
What does the livability measure include?
We use WalletHub’s 2026 quality-of-life category, which considers amenities, mobility, environmental conditions and leisure. Its methodology is linked in the sources. This category does not fully capture family ties, personal climate preferences, a particular school district or an individual neighborhood.
Does a score of 8.0 mean a state is 80% better?
No. The 1–10 grades describe relative results within the comparison. A score of 8.0 is neither a percentage tax saving nor a probability that you will enjoy living there. Review the underlying measures, fixed weights and limitations before making a shortlist.
Why can two states share a rank?
Taxstra ranks composite scores rounded to two decimals while cards display one decimal. Equal ranking values share the same competition rank. Direct dollar comparisons rank whole-dollar outcomes. Missing observations remain unranked when the selected calculation needs them; they are not replaced with zero.
Continue your research
Make the comparison yours.
Bring your offer, income mix or property numbers. Taxstra can help connect the state rules to a coordinated plan.