5 States with the Lowest Business Taxes

4. Florida

2023 State Business Tax Climate Index Score: 6.85

Florida has a single-bracket corporate income tax rate of 5.5%. The state lowered its corporate tax rate from 5.5% to 4.458% from the start of 2019 till the end of 2020 and further slashed it to 3.535% during 2021 before bringing it back to 5.5% at the start of 2022. The cut in corporate income tax was in line with numerous other states. The initial tax cut was made on the back of roaring tax collection during a booming economic phase. Meanwhile, the second corporate tax cut came during the COVID-19 pandemic to give relief to corporations.