Nevada ranks third best in the study, because it has no corporate and income taxes either.
Property taxes are also low, with the effective rate at only 3.53%.
Nevada doesn't score too well on sales taxes, though. At 6.85%, its rate is one of the highest in the nation.
Its handling of unemployment insurance taxes is a mixed bag. Businesses are promised lower costs, because the state keeps its maximum unemployment insurance rate at 5.4%, which is lower than elsewhere. But unlike other states, employers are limited in the exemptions they can claim to avoid paying it.