The think-tank said states with complicated tax codes did poorly on the ranking, while states with transparent, neutral and fair tax codes did well.
Kentucky has the 33rd most competitive tax code in the nation, according to the Tax Foundation's newly-released 2018 State Business Tax Climate Index. "All states (do that) to some degree, but IL more than most does rely heavily on targeted incentives to maintain jobs in the state despite the high rates".
Scott Drenard, the Tax Foundation's director of state projects, praised IN for its well-structured tax climate.
"The (Tax Foundation's) obvious ideology aside, the facts are that this administration has been rigorous and effective in constraining state spending growth to the lowest level in modern history - resulting in lower taxes for all New Yorkers", Peters said in an email.
The Tax Foundation, in its annual review of tax policy, ranked NY 49th among the 50 states because of high taxes on personal income, property and purchases.
"New York has decidedly improved but on most of these measures it remains uncompetitive compared to other states", said Jared Walczak, senior policy analyst at the Tax Foundation.
The Empire State fared better when it comes to corporate income taxes, placing 7th in the country - the same placement as last year and an improvement over 11th place two years ago. Filling out the rest of the top ten were Alaska at No. 3, Florida at No. 4, Nevada at No. 5, New Hampshire at No. 7, IN at No. 9 and Florida at No. 19. The state performed well in many individual categories, ranking 4th in property tax, 9th in sales tax, and 10th in unemployment insurance tax.
While New Jersey ranked 5oth in the rankings, Wyoming was in first place followed by South Dakota and Alaska.
IL ranked 36th in corporate tax structure, 35th in sales taxes, 42nd in unemployment insurance, 45th in property and 16th in the individual income tax category.
Neighboring states near IN aren't scoring almost as highly (Illinois is 29th, Kentucky is 33rd, MI is 12th, and OH is 45th).
"State lawmakers ... need to be more concerned with companies moving from Detroit, Mich., to Dayton, Ohio, than from Detroit to New Delhi", the study notes. In recent years, North Carolina, Indiana, Washington, D.C., and others have instituted reforms that have improved aspects of their tax code and boosted their Index scores.