The Tax Foundation ranked Wyoming among the 10 states with the most business-friendly tax systems; it was followed by South Dakota and Nevada. The foundation’s “state business tax climate index” compares states’ tax policies to other states. It doesn’t focus on the total amount of taxes residents pay. Instead, it focuses on how elements of the tax system enhance or harm the competitiveness of a state’s tax environment.

The 10 top-ranking states include:

1. Wyoming
2. South Dakota
3. Nevada
4. Alaska
5. Florida
6. New Hampshire
7. Washington
8. Montana
9. Texas
10. Utah

The 10 lowest-ranked states include:

41. Iowa
42. Maryland
43. Wisconsin
44. North Carolina
45. Minnesota
46. Rhode Island
47. Vermont
48. California
49. New York
50. New Jersey