In 2017, Michigan’s corporate tax climate was more business-friendly than all of the “Top Ten” states except South Dakota and New York. Michigan was ranked the third most favorable among its peer states, behind North Carolina, and Virginia.

What It Is: Index that compares corporate tax burdens 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: The Tax Foundation (State Business Tax Climate Index)