Missouri steadily remains one of the best overall states for business taxes in the country – and a top contender in the Midwest – earning a spot in the top 15 states for the fourth consecutive year, according to Tax Foundation’s 2023 State Business Tax Index.
The Index is designed to show how well states structure their tax systems, providing a road map for improvement over short- and long-term. Determined by five components – individual income tax, sales tax, corporate income tax, property tax, and unemployment insurance tax – the Index enables business leaders, government policymakers and taxpayers to compare their states’ tax systems to the rest of the country.
The ranking placed Missouri within the top four states for corporate tax index and unemployment insurance index and 7th best overall in property tax rank. Missouri has improved its standing in the Index in the last six years, rising from 14th place in 2016 to 11th, where it has remained since 2020. Equipped with the second lowest corporate income tax rate (4%) in the country, a $11,000 taxable wage base for unemployment insurance and a 0.96% property tax rate, the Show-Me state’s low taxes solidify its position as a preferred location for business.
Recent investments in Missouri are expected to bring in billions in economic impact to their respective areas, including an $800 million Meta data center near Kansas City and an $800 million American Foods Group beef processing plant in Warren County.
The rankings are in – Missouri is the perfect place for businesses seeking low taxes and ample opportunities!