 A new report by the Quantitative Economics and Statistics Practices ( QUEST ) of Ernst & Young in conjunction with the Council On State Taxation ( COST ) , ranks Ohio as third in the nation for friendliest tax environment . The study , " Competitiveness of state and local business taxes on new investment , " provides a state @-@ by @-@ state comparison of tax liabilities . The top five states ranked with the lowest effective tax rate on new investment are : ( 1 ) Maine ( 3 @.@ 0 % ) ; ( 2 ) Oregon ( 3 @.@ 8 % ) ; ( 3 ) Ohio ( 4 @.@ 4 % ) ; ( 4 ) Wisconsin ( 4 @.@ 5 % ) ; and ( 5 ) Illinois ( 4 @.@ 6 % ) . 
