Taxes aren't supposed to discriminate against people because of where they live, but a new WalletHub report has found that your address really does impact your tax hit.
The personal finance website assessed each state in terms of the return residents get on their taxes and found wide variations.
In addition to identifying the states with the best returns, the study also revealed which state residents get the least bang for their buck for the taxes they pay.
WalletHub stressed that the rankings have little to do with whether a state's taxes are high or low.
"Different states have dramatically different tax burdens," the report said. "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?"
To find out which states have the worst taxpayer return on investment (ROI), WalletHub contrasted state and local tax collections with the quality of the services residents receive in each of the 50 states using 30 metrics within five categories: education, health, safety, economy, and infrastructure and pollution. Each state’s overall government services score was then compared to its total taxes paid per capita by residents aged 18 and older.
Below, in descending order, are WalletHub’s top 10 states with the worst taxpayer ROI:
10. Connecticut
The state ranked fifth in education and health, and eighth in safety. However, Connecticut ranks 46th in total taxes paid per capita and sixth in overall government services.
9. Mississippi
The state ranks 47th in economy, 49th in education and 50th in health. Mississippi ranks 18th in total taxes paid per capita and 46th in overall government services.
8. Vermont
The state ranks first in safety, fourth in education and sixth in both health and infrastructure and pollution. Vermont ranks 49th in total taxes paid per capita and second in overall government services.
7. North Dakota
North Dakota has the 44th worst hospital system in the nation, but it ranks first in infrastructure and pollution, sixth in economy and eighth in health.The state ranks 47th in total taxes paid per capita and third in overall government services.
6. Nevada
The state ranks 43rd with one of the worst hospital systems in the nation, and 46th for its high violent crime rates. However, Nevada ranks fourth for best water quality. The state ranks 34th in total taxes paid per capita and 43rd in overall government services.
5. Louisiana
The state school system ranks 49th in the country. The state also had the nation's fourth-highest violent crime rate, and it has the third highest percentage of residents in poverty. Louisiana ranks 13th in total taxes paid per capita and 50th in overall government services.
4. Arkansas
Arkansas has the 46th highest percentage of residents in poverty, so government officials can afford fewer public services. Arkansas ranks 38th in total taxes paid per capita and 42nd in overall government services.
3. California
California ranks 12th in education and 18th in health. That’s the good news for taxpayers. The bad news is that California ranks 45th in total taxes paid per capita and 31st in overall government services.
2. New Mexico
New Mexico ranked next to last in the nation in terms of the highest percentage of residents in poverty and it had the nation's third-highest violent crime rate. To make matters worse, the state school system ranked last in the nation. New Mexico ranked 24th in total taxes paid per capita and 48th in overall government services.
1. Hawaii
The state has the fifth-lowest poverty rate in the nation, but its taxes are really high—the highest in the nation, in fact. It ranked 22nd in overall services and scored poorly in education, and infrastructure and pollution.
The full report can be viewed here.
