Texas business tax climate ranks 13th in nation

A Texas-made ashtray at Found Furnishings in Midland. (Tim Fischer / Reporter-Telegram) A Texas-made ashtray at Found Furnishings in Midland. (Tim Fischer / Reporter-Telegram) Photo: Tim Fischer, Photographer Photo: Tim Fischer, Photographer Image 1 of / 1 Caption Close Texas business tax climate ranks 13th in nation 1 / 1 Back to Gallery

AUSTIN -- Texas continues to have one of the worst corporate tax structures in the nation, preventing it from cracking the top ten in The Tax Foundation's annual list of states with the best business tax climates.

Each year The Tax Foundation ranks all states on their business tax climate. This year Texas ranked 13th, behind national leaders like Wyoming, South Dakota and Alaska.

"The goal of the Index is to start a conversation between taxpayers and legislators about how their tax system compares with other states, and provide a roadmap for improvement," said lead-report author Jared Walczak, a senior policy analyst at the Tax Foundation.

A big reason for Texas not being among the top 10 is due to its corporate tax system, according to The Tax Foundation. According to the non-partisan research group, Texas ranked 49th in corporate tax structure. Only Delaware ranked below Texas.

The Tax Foundation has long been a critic of Texas's Margins Tax, which the group called one of the "worst business taxes in the country."

Here's The Tax Foundation's Top 15 state for overall business taxes:

1. Wyoming

2. South Dakota

3. Alaska

4. Florida

5. Nevada

6. Montana

7. New Hampshire

8. Utah

9. Indiana

10. Oregon

11. North Carolina

12. Michigan

13. Texas

14. Tennessee

15. Delaware.

The worst environment for business, according to The Tax Foundation: New Jersey. New York and California are not far behind.