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Alaska is the 32nd Best State for Business 2014

Alaska is considered a “best state” for startups. Since Alaska has no individual income or state-level sales taxes, more entrepreneurs are burning the long, midnight oil in the land of the midnight sun. That qualified it for the No. 4 spot in the Tax Foundation’s latest State Business Tax Climate Index. Last year, the state cut taxes for small businesses earning $222,000 or less, and oil-tax simplification will give Alaska a great economic advantage. The state tied for No. 4 in the three-year Kaufmann Index.

Previous State: Montana Next State: Washington

No. 32 Alaska

Taxations & Regulations

Workforce Quality

Living Environment

Key Metrics
State GDP 

  • % Growth ’12-’13: -2.5
  • % Growth ’11-’12 v. Nat’l Avg. (2.5%): -1.4


  • Unemployment Rate Dec. 2013 %: 6.4
  • Comparison with Nat’l Rate (6.70%): -0.3

Domestic Migration

  • Domestic Net Migration 2013: -4,006
  • Rank: 35

State Government

  • State Debt per Capita Fiscal Year ’13 ($): 9,294
  • State & Local Gov’t Employees per 10k Residents: 766

State-Local Tax Burden

  • Rate (%): 7.0%
  • Compared to Nat’l Avg. (9.9%): -2.89%
Key Companies
  • General Communication
  • Alaska Communications Systems
  • First National Bank Alaska
Development Trend Indicator: Neutral
Oil-tax reform helps competitiveness but minimum-wage hike is threatened.

Based on CEO Survey by ChiefExecutive.net

Bureau of Economic Analysis
Bureau of Labor Statistics
The Tax Foundation

About J.P. Donlon

J.P. Donlon
JP Donlon is the Editor-in-Chief of Chief Executive magazine.