Michigan fell out of the “Top Ten” states in terms of corporate tax climate in 2015. Michigan’s corporate tax climate rank exceeded all of the “Top Ten” states except South Dakota and was ranked the fourth most favorable among its peer states, behind Georgia, North Carolina, and Virginia.

What It Is: Index that compares corporate tax burden based on corporate income tax and gross receipts tax (10 = most favorable, 0 = least favorable).

Why It Matters: A lower corporate tax burden can improve a state’s attractiveness to both new and existing businesses.

Corporate Tax Climate Trends

Corporate Tax Climate Standings

Source: Tax Foundation State Business Tax Climate Index