In 2018, Michigan’s corporate tax climate was more business-friendly than all of the “Top Ten” states, except 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)