2006 State and Local Tax Burdens on Business
Percent of Private Sector Gross State Product

Mississippi

6.1%

Louisiana

6.0%

New York

5.9%

Texas

5.6%

Florida

5.4%

Illinois

5.3%

Arizona

5.2%

California

5.2%

Pennsylvania

5.0%

Indiana

4.9%

Kentucky

4.9%

South Carolina

4.8%

Arkansas

4.7%

Michigan

4.7%

Ohio

4.7%

Tennessee

4.6%

Massachusetts

4.4%

Alabama

4.3%

Georgia

4.2%

Newport News (Virginia)

3.9%

North Carolina

3.9%

Source: Ernst & Young/Council on State Taxation

2007 State Corporate Income Tax Rates
Selected States

Pennsylvania

9.99%

Massachusetts

9.50%

New Jersey

9.00%

Rhode Island

9.00%

California

8.84%

Ohio

8.54%

New York

7.50%

Connecticut

7.50%

Illinois

7.30%

Kentucky

5.85%

Maryland

7.00%

North Carolina

6.90%

Tennessee

6.00%

Georgia

6.00%

Virginia

6.00%

Florida

5.50%

South Carolina

5.00%

Alabama

4.29%

Source: Virginia Economic Development Partnership