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Montana has the 6th most competitive tax code in the nation, according to the Tax Foundation’s newly-released 2018 State Business Tax Climate Index.

This annual report measures how well each state’s tax code is structured, analyzing over 100 tax variables in five different tax categories: corporate, individual income, sales, property, and unemployment insurance.

The breakdown of Montana’s 2018 ranking is as follows (1st is best, 50th worst):

Overall Tax Climate: 6

Corporate Tax Structure: 12

Individual Income Tax Structure: 21

Sales Tax Structure: 3

Unemployment Insurance Tax Structure: 20

Property Tax Structure: 9

The Index ranks states based on their tax structure, not their tax burden. States with complex tax codes that distort business decisions do poorly, while states with transparent, neutral, fair tax codes score well.

“While the amount of revenue a state raises gets a lot of attention, it doesn’t tell the whole story about a state’s tax system,” said lead-report author Jared Walczak, a senior policy analyst at the Tax Foundation. “The goal of the Index is to start a conversation between taxpayers and legislators about how their tax system compares with other states, and provide a roadmap for improvement.”