The 2025 State Tax Competitiveness Index published by the Tax Foundation puts Alaska at #3 for states’ overall tax competitiveness, as well as the business tax climate.
The annual index is intended to help taxpayers, lawmakers, and business decision-makers to gauge how their states’ tax systems compare with other states. While there are many ways to show how much state governments collect in taxes, the index evaluates how well states structure their tax systems and provides a road map for improvement, the foundation said.
While the top 10% of income earners already pay more than 60% of all federal taxes and 76% of income taxes, tax policy is especially important this year, because the Trump-era tax breaks are expiring in 2025, and candidate Kamala Harris has said she will increase taxes on many of the job-creating American entrepreneurs, including taxing unrealized gains.
The absence of a major tax broadband tax is a common factor among many of the top 10 states on the index.
Although property taxes and unemployment insurance taxes are levied in every state, there are several states that do without one or more of the other major taxes: corporate income tax, individual income tax, or sales tax. South Dakota and Wyoming have no corporate or individual income tax; Alaska has no individual income or state-level sales tax; Florida and Texas have no individual income tax; and New Hampshire and Montana have no sales tax, with New Hampshire also only imposing a narrow tax on interest and dividend income.
The design of the Index changed this year to account for new taxes that have been introduced, such as a new digital advertising tax imposed by Maryland in 2021.
The 10 best states in this year’s Index are governed by Republicans:
The 10 lowest-ranked, or worst, states in this year’s Index are run by Democrats, with New York state being the worst offending state for taxation:
- Massachusetts
- Hawaii
- Vermont
- Minnesota
- Washington
- Maryland
- Connecticut
- California
- New Jersey
- New York
Read the study and compare the states at this Tax Foundation link.
Now if we could reduce Anchorage Property Tax by 75%. Which party runs Anchorage? Democrats because Republicans have been derelict and haven’t voted.
The writer knows this how?
That’s why we need to replace property tax with a sales tax one for one not both taxes because that’s just a green light for more politicians spending for 500,000 dollar toilets and raises for the public unions.
Grow up, be a Big Boy, and do your part to support a functioning society. Get over it. Pay your damn taxes like everyone else, and stop your whining.
Just wait,our local Democrats want to catch up with California
“The power to tax, is the power to destroy”. ‘Nuff said.
We have an incredible tax load.
You seem to be blind to the fact that our State is largely funded by Oil Revenue.
That boils down to a Tax.
And our Government is horribly wasteful.
And, look at the PFD…
It started out well. Did well. Lasted un-touched until Walker broke into it.
They spent their half, and are going after ours now.
So, if you include all factors of funding the State as tax generated…
We would be a lot closer to the bottom of the list.
But, people don’t feel it. Well, at least until Bill got in.
No. 3, and yet some still bitch about what little tax they do pay. Cry me a river, MR.
The reality is that when local sales taxes, property taxes, personal property taxes & service area taxes are factored into the equation, Alaska is NOT in the top 10 most favorable states for tax burden. Numerous studies have shown us that the Railbelt population in Alaska (the most populous area of Alaska) ranks somewhere in the middle of all states for overall tax burden.