INDIANAPOLIS, Indiana
Population: 848,788
Unemployment: 4.5 percent
Sales Tax: 7.0 percent
The diversified economy that draws strength from such stalwarts as Eli Lilly and Brightpoint as well as a wave of new tech startups benefits from low taxes—the state corporate tax dropped to 6.5 percent in July—making it about 4 percent less than the national average to do business here. There are also great logistical advantages, which is why the city is home to a FedEx Express hub and distribution centers for the likes of Amazon and Target.