 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 % ) . In 2013 , Ohio was ranked in the top ten states for best business climate by Site Selection magazine , based on a business @-@ activity database . The state was edged out by Texas and Nebraska for the 2013 Governor 's Cup award from the magazine , based on business growth and economic development . Ohio was ranked # 11 by the council for best friendly @-@ policy states according to their Small Business Survival Index 2009 . The <unk> 's <unk> Guide ranked the state # 13 overall for best business climate , including # 7 for best litigation climate . Forbes ranked the state # 8 for best regulatory environment in 2009 . Ohio has 5 of the top 115 colleges in the nation , according to U.S. News and World Report 's 2010 rankings , and was ranked # 8 by the same magazine in 2008 for best high schools . Overall , the state 's schools were ranked # 5 in the country in 2010 . The year ending July 2011 saw the state ranked fourth in the nation in job creation behind Texas , California , and New York . 
