Analysis: Florida ranks 22nd best in sales tax study


Florida finished 22nd in a study by the Tax Foundation examining which states have the most business-friendly sales tax structures.

The state’s ranking remained unchanged from its 2018 score, according to the foundation’s analysis, which is part of a wider study titled “2019 State Business Tax Climate Index.”

A state’s tax on goods and services can hurt the business climate if the levy applies to business inputs such as machinery and raw materials and if the rate causes consumers to alter their shopping patterns, according to the foundation.

The best sales tax structure occurs when it applies broadly to end products and services that are purchased by consumers and when rates are low and minimize market distortions, the study says.

The highest-scoring states in the analysis were New Hampshire, Delaware, Montana, Oregon, and Alaska – all of which do not tax sales.

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How Do States Measure Up on Sales Taxes?

State2018 Rank 2019 Rank Rank Change from 2018 to 2019
New Hampshire2  1 1
Delaware1  2 -1
Montana3  3 0
Oregon4  4 0
Alaska5  5 0
Wyoming6  6 0
Maine8  7 1
Wisconsin7  8 -1
Nebraska9  9 0
Virginia11  10 1
Michigan12  11 1
Indiana10  12 -2
Massachusetts13  13 0
Kentucky14  14 0
Vermont16  15 1
Utah17  16 1
West Virginia15  17 -2
Maryland18  18 0
Iowa19  19 0
North Carolina20  20 0
Pennsylvania21  21 0
Florida22  22 0
Rhode Island23  23 0
Hawaii26  24 2
Missouri24  25 -1
Idaho27  26 1
Minnesota25  27 -2
Ohio30  28 2
Georgia29  29 0
Connecticut28  30 -2
Kansas31  31 0
North Dakota32  32 0
South Dakota34  33 1
South Carolina33  34 -1
Mississippi38  35 3
Illinois35  36 -1
Texas37  37 0
Colorado39  38 1
Oklahoma36  39 -3
Nevada42  40 2
New Mexico40  41 -1
New York43  42 1
California41  43 -2
Arkansas44  44 0
New Jersey46  45 1
Tennessee45  46 -1
Arizona47  47 0
Alabama48  48 0
Washington49  49 0
Louisiana50  50 0
Source: Tax Foundation

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