States with the Best & Worst Taxpayer ROI (2025)

from Wallet Hub, March 25, 2025

With Tax Day coming up on April 15 and 66% of Americans thinking their current tax rate is too high, WalletHub today released its report on the states with the Best & Worst Taxpayer Return on Investment in 2025, as well as expert commentary.

Tax Day can be a painful reminder of how much we have to invest in federal, state and local governments, though many of us aren’t sure exactly what we get in return. As a result, this creates a disconnect in the minds of taxpayers between the amount of money we need to fork over on Tax Day (April 15 this year) and how much we deserve in return.

Americans have looked at taxes with especially high scrutiny in recent years. In fact, 66% of Americans think their current tax rate is too high, according to WalletHub’s Taxpayer Survey. We do know, however, that taxpayer return on investment, or ROI, varies based on where one lives. Federal income-tax rates are uniform across the nation, yet some states receive far more federal funding.

Federal taxes and support are only part of the story, though. 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 used 29 metrics to compare the quality and efficiency of state-government services across five categories — Education, Health, Safety, Economy, and Infrastructure & Pollution — taking into account the drastically different rates at which citizens are taxed in each state.

Taxpayer ROI in Hawaii (1=Best, 25=Avg.):

• 49th – Overall ROI
• 49th – Total Taxes per Capita (2nd highest)
• 42nd – Education
• 44th – Economy
• 22nd – Infrastructure & Pollution
• 48th (tie) -- Hospital Systems
• 5th--Violent Crime Rate
• 1st--Water Quality

READ … full report