Top 10 States for Franchise Growth in 2024: Insights from the ALEC-Laffer Report

The 2024 ALEC-Laffer state economic competitiveness index ranks all 50 states by both economic outlook and performance, providing invaluable insights for entrepreneurs and franchise owners looking to expand. The states ranking highest on the list secured their spots due to their favorable tax systems, strong employment growth and business-friendly policies, making them ideal locations for franchise opportunities.

Other strong performers like Idaho, Arizona and North Carolina join Utah, which tops the list for the 17th consecutive year. Each of these states showcases unique strengths, from low corporate tax rates to effective tax changes, cementing their positions as the best places for business growth and franchise success.

Let’s take a closer look at what makes these 10 states stand out for 2024.

Utah

Economic Outlook: 1

Economic Performance: 3

Key Contributors:

• Personal Income Tax Progressivity: $0.39 (Rank 12)
• Remaining Tax Burden per $1,000 of Personal Income: $12.27 (Rank 7)
• Average Workers’ Compensation Costs per $100 of Payroll: $0.86 (Rank 6)

Idaho

Economic Outlook: 2

Economic Performance: 2

Key Contributors:

• Debt Service as a Share of Tax Revenue: 3% (Rank 2)
• State Minimum Wage: $7.25 (Rank 1)
• Recently Legislated Tax Changes: -$12.89 (Rank 1)

Arizona

Economic Outlook: 3

Economic Performance: 4

Key Contributors:

• Remaining Tax Burden per $1,000 of Personal Income: $9.58 (Rank 1)
• Public Employees Per 10,000 of Population: 382.5 (Rank 2)
• Average Workers’ Compensation Costs per $100 of Payroll: $0.87 (Rank 8)

North Carolina

Economic Outlook: 4

Economic Performance: 11

Key Contributors:

• Top Marginal Corporate Income Tax Rate: 2.5% (Rank 4)
• Right to Work State? Yes (Rank 1)
• Property Tax Burden per $1,000 of Personal Income: $20.71 (Rank 9)

Indiana

Economic Outlook: 5

Economic Performance: 19

Key Contributors:

• Public Employees per 10,000 of Population: 469.8 (Rank 8)
• State Minimum Wage: $7.25 (Rank 1)
• Average Workers’ Compensation Costs per $100 of Payroll: $0.86 (Rank 6)

Texas

Economic Outlook: 6

Economic Performance: 6

Key Contributors:

• Recently Legislated Tax Changes: -$4.63 (Rank 6)
• Top Marginal Personal Income Tax Rate: 0% (Rank 1)
• Top Marginal Corporate Income Tax Rate: 2.56% (Rank 5)

South Dakota

Economic Outlook: 7

Economic Performance: 17

Key Contributors:

• Personal Income Tax Progressivity: $0.00 (Rank 2)
• State Liability System Survey: 72 (Rank 10)
• Recently Legislated Tax Changes: -$2.80 (Rank 15)

Wyoming

Economic Outlook: 8

Economic Performance: 44

Key Contributors:

• State Liability System Survey: 73.1 (Rank 4)
• Personal Income Tax Progressivity: $0 (Rank 2)
• Top Marginal Personal Income Tax Rate: 0% (Rank 1)

Oklahoma

Economic Outlook: 9

Economic Performance: 32

Key Contributors:

• Property Tax Burden per $1,000 of Personal Income: $17.42 (Rank 4)
• Top Marginal Corporate Income Tax Rate: 4% (Rank 7)
• Debt Service as a Share of Tax Revenue: 3.57% (Rank 6)

North Dakota

Economic Outlook: 10

Economic Performance: 37

Key Contributors:

• Top Marginal Corporate Income Tax Rate: 4.31% (Rank 8)
• Estate/Inheritance Tax Levied? No (Rank 1)
• State Liability System Survey: 72.6 (Rank 6)

For more on the ALEC-Laffer report, visit https://www.richstatespoorstates.org/. Find more information on top franchise opportunities at https://1851franchise.com/growth-club.