MassBudget: How Do MA Business Taxes Compare to Other States?

MassBudget    Information.    Participation.  Massachusetts Budget and Policy Center    Democracy. How Do Massachusetts Business Taxes Compare to Other States When businesses are deciding where to locate or expand, they look at a range of factors: proximity to materials and customers, infrastructure, quality of the local workforce, energy costs, etc. A state's tax policy also may play a role in some cases, though rarely a primary one - after all, state and local business taxes average less than 2 percent of total business costs nationwide. Nevertheless, business tax levels are a topic that receives a substantial amount of attention, both in the press and among policy makers. Notably, Massachusetts has relatively low business tax levels compared to other states. Our updated fact sheet, How Do Massachusetts Business Taxes Compare to Other States, reviews the evidence on statewide business taxes and finds that: According to one prominent study -- produced by the Council on State Taxation (COST) -- overall state and local business taxes as a share of the local economy are lower in Massachusetts than in 39 other states. A separate analysis by the Anderson Economic Group finds that Massachusetts business taxes are a relatively small share of business profits -- smaller than in most other states and smaller than the national average. Read HOW TO MASSACHUSETTS BUSINESS TAXES COMPARE TO OTHER STATES See ALL OF OUR WORK ON THE STATE TAX SYSTEM The Massachusetts Budget and Policy Center (MassBudget) produces policy research, analysis, and data-driven recommendations focused on improving the lives of low- and middle-income children and adults, strengthening our state's economy, and enhancing the quality of life in Massachusetts. MASSACHUSETTS BUDGET AND POLICY CENTER 15 COURT SQUARE, SUITE 700 BOSTON, MA 02108

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