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LOCATION MATTERS 2021
THE STATE TAX COSTS OF DOING BUSINESS
LOCATION MATTERS 2021
THE STATE TAX COSTS OF DOING BUSINESS
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TAX FOUNDATION | I
TABLE OF CONTENTS
INTRODUCTION: A COMPARATIVE ANALYSIS OF STATE TAX COSTS ON BUSINESS
1
CHAPTER 1: OBJECTIVES AND SCOPE
4
CHAPTER 2: FIRM OVERVIEWS AND EFFECTIVE TAX RATES
13
Corporate Headquarters
14
Research and Development Facility
15
Technology Center
16
Data Center
17
Shared Services Center
18
Distribution Center
19
Capital-Intensive Manufacturing Operation
20
Labor-Intensive Manufacturing Operation
21
CHAPTER 3: EFFECTIVE TAX RATES BY STATE
23
Alabama
24
Alaska
25
Arizona
26
Arkansas
27
California
28
Colorado
29
Connecticut
30
Delaware
31
Florida
32
Georgia
33
Hawaii
34
Idaho
35
Illinois
36
Indiana
37
Iowa
38
Kansas
39
Kentucky
40
Louisiana
41
Maine
42
Maryland
43
Massachusetts
44
Michigan
45
Minnesota
46
Mississippi
47
Missouri
48
Montana
49
Nebraska
50
Nevada
51
New Hampshire
52
New Jersey
53
New Mexico
54
New York
55
North Carolina
56
II | LOCATION MATTERS
North Dakota
57
Ohio
58
Oklahoma
59
Oregon
60
Pennsylvania
61
Rhode Island
62
South Carolina
63
South Dakota
64
Tennessee
65
Texas
66
Utah
67
Vermont
68
Virginia
69
Washington
70
West Virginia
71
Wisconsin
72
Wyoming
73
District of Columbia
74
APPENDICES
A: Incentives for Newly Established Operations
75
B: Tax Comparison Tables
80
C: Component Tax Rates
87
D: Methodology
103
TAX FOUNDATION | 1
EXECUTIVE SUMMARYINTRODUCTION: A COMPARATIVE ANALYSIS OF STATE TAX
COSTS ON BUSINESS
State and local taxes represent a significant business cost for corporations operating in the United
States and can have a material impact on net operating margins. Consequently, business location
decisions for new manufacturing fa