20 Cities With the Best Local Tax Incentives
Tax breaks at the local level can attract businesses and people and help ease the burden on the budget. Many cities in the U.S. offer appealing tax breaks to help the economy grow, make living more affordable, and encourage business growth.
- Tricia Quitales
- 7 min read
The economy of a city is shaped in large part by local tax incentives, which are good for both businesses and people.Those who live in the area are often given tax credits, exemptions, or lower rates as an incentive. When cities offer competitive tax breaks, they can bring in new businesses, create jobs, and help people do well financially. This article discusses the 20 cities that offer the best local tax incentives, providing an overview of the different programs that help these cities’ economies.
1. Austin, Texas
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Austin is great for businesses and people because it has low property taxes and no state income tax. The city offers tax breaks, such as exemptions for businesses in certain fields, such as renewable energy and technology. Austin also has a program that gives startups and entrepreneurs incentives, which helps the tech industry grow.
2. Denver, Colorado
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Denver offers good tax breaks to businesses, especially those in the tech, aerospace, and energy sectors. The city waives sales and property taxes to encourage new investment and development. Businesses that create jobs in high-priority areas can also get tax credits through local programs, which helps Denver’s economy grow.
3. Nashville, Tennessee
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Local tax breaks, such as exemptions for new construction and real estate investments, make Nashville an even better place for businesses to thrive. Compared to other big cities, Nashville also has low property taxes and gives tax breaks to companies that hire lots of people. They pay them well and focus on growing industries like education and healthcare.
4. Charlotte, North Carolina
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Charlotte offers several tax breaks to help businesses grow, especially in the tech and financial services industries. Companies that move to or grow in the city can also receive tax credits and lower property taxes. These incentives help the city’s economy grow and create more jobs.
5. Portland, Oregon
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Portland’s local tax breaks are meant to bring in businesses and startups that care about the environment. Green buildings and projects that use renewable energy don’t have to pay property taxes in the city. Portland also gives tax breaks to research and development businesses, which helps the city’s innovation economy grow.
6. Phoenix, Arizona
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Phoenix offers several tax breaks to businesses that want to locate there. For example, manufacturing equipment and research and development activities are not subject to sales tax. Property taxes in the city are also not too high, which is good for both businesses and residents. Phoenix also gives tax breaks to companies that invest in certain areas, such as renewable energy and technology.
7. Indianapolis, Indiana
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There are many local tax breaks in Indianapolis, especially for businesses in the tech and manufacturing fields. Businesses that put money into making jobs can get their property taxes lowered and their income tax credits increased. Businesses that help with community development projects and make their buildings more energy efficient can also get tax breaks from the city.
8. Salt Lake City, Utah
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Salt Lake City offers many tax breaks, such as lower property taxes for businesses that build in “enterprise zones.” The city also offers tax breaks to companies that create new jobs, especially in the manufacturing and tech sectors. Salt Lake City has low overall tax rates, making it a good place for business owners to set up shops.
9. Atlanta, Georgia
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Atlanta offers several tax breaks to encourage businesses to move there and create jobs. Some of these incentives are for businesses that invest in certain fields, like technology, film production, logistics, and so on. The city also gives businesses that move to certain areas lower property taxes, which helps the local economy grow.
10. Las Vegas, Nevada
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People know that Las Vegas doesn’t have a state income tax, which is great for both businesses and residents. The city offers various tax breaks to businesses in the tourism, technology, and manufacturing industries. The city also offers tax credits for businesses that help create jobs and diversify the economy.
11. Seattle, Washington
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Seattle offers several tax breaks to businesses that want to grow, especially those in the tech, healthcare, and green energy sectors. Certain industries are exempt from city taxes, and businesses doing high-priority activities can get property tax breaks. Big tech companies have moved to Seattle because of its good incentives, which have helped the city’s economy grow.
12. San Antonio, Texas
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Businesses in San Antonio can get several local tax breaks, such as property tax breaks for new developments and investment projects. The city also gives tax breaks to manufacturing, health care, and cybersecurity businesses. Because of these programs, San Antonio is becoming an attractive place for new businesses and job opportunities.
13. Columbus, Ohio
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Columbus offers tax breaks, like lowering property taxes for commercial developments, to businesses that invest in the city. The city also gives income tax breaks to companies that hire people in certain fields, like healthcare, technology, and finance. Because of these benefits, Columbus is a good place for businesses to grow and invest.
14. Kansas City, Missouri
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Kansas City offers many tax breaks for businesses, such as lowering property taxes and not charging sales tax on some items. Companies that invest in the local economy, especially those that create high-paying jobs, get big tax breaks from the city. Kansas City is also known for its tax breaks that encourage the development of land that isn’t being used.
15. Cincinnati, Ohio
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To encourage business growth, Cincinnati offers local tax breaks, such as property tax breaks, to companies that invest in certain parts of the city. The city’s tax policies are meant to attract new businesses and jobs, especially in the tech and manufacturing sectors. Cincinnati’s incentives have helped the city’s business community grow.
16. Minneapolis, Minnesota
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Minneapolis gives tax breaks to businesses that help create jobs, especially in the technology and renewable energy sectors. The city lowers property taxes for new building projects and doesn’t charge sales tax on manufacturing equipment. These incentives help the local economy grow and attract new companies.
17. Chicago, Illinois
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Chicago offers several local tax breaks for businesses that want to grow, especially those in the manufacturing and real estate industries. The city also offers tax credits for businesses in high-priority fields, like transportation and technology. These tax breaks, as well as property tax breaks and tax breaks for businesses that invest, are meant to help key parts of the city grow.
18. Orlando, Florida
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Businesses in Orlando, especially those in the tourism, technology, and entertainment industries, can get tax breaks from the city. The city gives tax breaks to people who start businesses and hire workers. Orlando also gives tax breaks to companies that invest in green technologies and practices that are good for the environment.
19. Detroit, Michigan
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Detroit has many tax breaks, such as lowering businesses’ property taxes when they invest in redevelopment projects. Companies that create new jobs, especially in the tech and manufacturing fields, can also get tax breaks from the city. The local tax breaks in Detroit are meant to improve neighborhoods and grow the economy.
20. Boulder, Colorado
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Boulder is known for giving tax breaks to companies that work with clean energy and technology. Companies that support the city’s efforts to be more environmentally friendly can also get tax breaks and credits. Boulder also offers tax breaks to companies that invest in developing the local workforce, which helps the area’s job market by creating new jobs.