It’s fitting that income tax day is when the Small Business & Entrepreneurship Council has released its annual report of “best to worst” states for taxes.

Karen Kerrigan, president and CEO of the SBE Council, said in a release: “Tax day is an ideal day for elected officials and policymakers to reflect upon tax competitiveness—especially how tax systems impact startups, entrepreneurship and small business growth. Now, more than ever, entrepreneurs and businesses are placing greater weight on state policies when considering a location for startup or expansion. Taxes are a priority issue, and tax-friendly states are much more appealing for entrepreneurs.”

The SBE Council’s “Small Business Tax Index 2014: Best to Worst State Tax Systems for Entrepreneurship and Small Business” ranks Missouri (No. 23) ahead of Kansas (No. 26) – yet it’s the latter that earns praise in the report for having improved its tax climate for small business.

Raymond J. Keating, chief economist for the SBE Council and author of the report, points out that “states like North Carolina, North Dakota, Kansas, Arizona, New Mexico and Indiana have improved their tax climates and/or are in the midst of doing so. The leaders in these states understand that a competitive and business-friendly tax system is important to attracting investment, startups and company relocation.”

According to the report, the 15 best state tax systems are: 1) Nevada, 2) South Dakota, 3) Texas, 4) Wyoming, 5) Washington, 6) Florida, 7) Alabama, 8) Ohio, 9) Colorado, 10) Alaska, 11) Indiana, 12) Michigan, 13) Arizona, 14) North Dakota and 15) Utah.

And the 15 worst state tax systems for small business are: 36) Delaware, 37) Wisconsin, 38) Idaho, 39) Rhode Island, 40) Nebraska, 41) Connecticut, 42) Oregon, 43) Vermont, 44) Maine, 45) New York, 46) Iowa, 47) Hawaii, 48) New Jersey, 49) Minnesota and 50) California.

For all rankings and to read the complete report, go to http://www.sbecouncil.org/wp-content/uploads/2014/04/BTI2014Final.pdf.