2019’s States with the Best & Worst Taxpayer ROI

2019’s States with the Best & Worst Taxpayer ROI

Tax Day can be a painful reminder of how much we have to invest in federal, state and local governments, though many of us are unaware of exactly what they give us in return. As a result, this creates a disconnect in the minds of taxpayers between the amount of money we should fork over every April and how much we deserve in return.

Perhaps that’s why, according to WalletHub’s Taxpayer Survey, 55% of U.S. adults feel they pay too much in taxes and why 90% don’t think that the government uses tax revenue wisely. We do know, however, that taxpayer return on investment, or ROI, varies based where one lives. Federal income-tax rates are uniform across the nation, yet some states receive far more federal funding than others. But federal taxes and support are only part of the story.

Different states have dramatically different tax burdens. This begs the question of whether people in high-tax states receive superior government services. Likewise, are low-tax states more efficient or do they receive low-quality services? In short, where do taxpayers get the most and least bang for their buck?

WalletHub aimed to answer that question by contrasting state and local tax collections with the quality of the services residents receive in each of the 50 states within five categories: Education, Health, Safety, Economy, and Infrastructure & Pollution. Our data set includes a total of 30 key metrics. Read on for our findings, methodology and commentary from a panel of experts.

State and Local Taxes Paid vs. Spending Received by State (1=Best)

1 New Hampshire
2 South Dakota
3 Florida
4 Virginia
5 Colorado
6 Missouri
7 Texas
8 Georgia
9 Nebraska
10 Wyoming
11 Utah
12 Wisconsin
13 Ohio
14 Alaska
15 Rhode Island
16 Indiana
17 Tennessee
18 Oklahoma
19 Iowa
20 Montana
21 South Carolina
22 Maine
23 Arizona
24 Idaho
25 Kentucky
26 North Carolina
27 Michigan
28 Kansas
29 Illinois
30 Pennsylvania
31 Alabama
32 Washington
33 New Jersey
34 Oregon
35 Massachusetts
36 Minnesota
37 West Virginia
38 Maryland
39 Delaware
40 New York
41 Connecticut
42 Mississippi
43 Vermont
44 North Dakota
45 Nevada
46 Louisiana
47 Arkansas
48 California
49 New Mexico
50 Hawaii

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