Whether local, state or federal, the cost of public services isn’t always shared equally among taxpayers, and neither is the value they receive for every tax dollar they pay.
In a study to find out where taxpayers get the best return on investment (ROI) for their tax dollars, WalletHub compared the quality of government services residents received to the total state and local tax they pay in each of the 50 states. The personal finance website first analyzed five key government service categories: education, health, safety, economy, and infrastructure and pollution. The categories were then further broken down into 30 relevant metrics.
Finally, the study constructed the taxpayer ROI ranking by comparing each state’s overall government services score to its total taxes paid per capita, comprised of adults ages 18 and older.
Here, in ascending order, are WalletHub's top 10 states with the best taxpayer ROI:
10. Tennessee
Famous for its country music venues and blues hotspots, this state ranks first for the country’s best roads and bridges. Tennessee ranks 41st in overall government services and fourth in total taxes paid per capita.
9. Nebraska
Home to such off-the-beaten-path sights as Carhenge and the Hastings Museum Kool-Aid exhibit, the Cornhuskers State ranks fourth for the country’s best hospital systems. Nebraska ranks 12th in overall government services and 24th in total taxes paid per capita.
8. Georgia
Georgia is the country’s top producer of peanuts, pecans, sweet vidalia onions and Coca-Cola, a soft drink invented in Atlanta in 1886. This Southern state ranks 34th in overall government services and ninth in total taxes paid per capita.
7. Texas
Known as the cowboy capital of the world, Texas ranks second for best roads and bridges. The Lone Star State ranks 35th in overall government services and seventh in total taxes paid per capita.
6. Ohio
If you’re a music fan, visit the Buckeye State’s Rock and Roll Hall of Fame in Cleveland. Ohio ranks 26th in overall government services and 12th in total taxes paid per capita.
5. Missouri
The Show-Me State is the place to go for fans of barbecue cuisine, bluegrass and the blues. Missouri ranks 38th in overall government services and third in total taxes paid per capita.
4. Virginia
Four of the country’s first five presidents called Virginia home. Virginia ranks fourth for best school systems. Virginia also ranks third in overall government services and 23rd in total taxes paid per capita.
3. South Dakota
South Dakota is famed for its monuments of U.S. presidents and native American tribal leader Crazy Horse. South Dakota ranks 47th for worst roads and bridges, but second for best hospital systems. South Dakota ranks 21st in overall government services and sixth in total taxes paid per capita.
2. Florida
The Sunshine State offers something for taxpayers of all ages. Florida ranks fourth for best roads and bridges. Florida ranks 30th in overall government services and first in total taxes paid per capita.
1. New Hampshire
The Granite State is home to the world’s first free, tax-supported library. New Hampshire ranks second with the lowest violent crime rate, and first with the lowest percentage of residents living in poverty. New Hampshire ranks nineth in overall government services and second in total taxes paid per capita.
The full report can be viewed here.
