(The Center Square) – West Virginia ranks tops among states with a state income tax in a new ranking of how a state’s tax and regulatory rules treat remote workers.
In the National Taxpayers Union Foundation’s Remote Obligations And Mobility Index, West Virginia scored a 28.95 out of a potential 35 points. The five factors on the score were filing thresholds, reciprocity agreements, “convenience of the employer” rules, individual tax burden, and withholding thresholds.
“West Virginia scores highly due to its gold-standard 31-day threshold for withholding, exempting nearly 95 percent of incoming commuters with reciprocity agreements, and a relatively high filing threshold,” the report said.
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming all don’t have state personal income taxes and ranked atop the list.
Delaware was worst on the list, followed by Nebraska, Arkansas, New York, Mississippi, Kansas and Rhode Island.
“Only West Virginia truly scores well in all sections, and the board is open for other states to become more attractive destinations for remote and mobile workers by passing common-sense laws to protect individuals and businesses from burdensome tax obligations arising from flexible work arrangements,” the report said in its conclusion. “Many of these reforms can be done at minimal revenue cost.”