Alabama has the worst tax climate for businesses in the Southeastern United States, according to the Tax Foundation's 2023 State Business Tax Climate Index.

The index ranked Alabama 41st overall nationwide for its business tax climate, dropping two spots since last year and finishing with the lowest score in the Southeast.

Alabama is in the top 20 in the nation when it comes to its corporate, property and unemployment insurance taxes. However, its ranking of 30th overall in individual income taxes and last in the nation for its sales tax burden weigh down the other areas of the tax code.

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