Which state is the most taxpayer-friendly?

The Cowboy State has once again won the tax rodeo for having the most competitive tax structure according to the Tax Foundation.

The Tax Foundation recently released its 2025 State Competitiveness Index. This study revealed which states are taxpayer-friendly for both individuals and businesses. States are ranked based on income, sales, excise, property, capital gains, corporate, payroll, estate, and VAT consumption taxes. The Tax Foundation found that Wyoming is the most taxpayer-friendly state, Montana is 5th, Idaho is 11th, and Washington is 45th.