2025’s States with the Best & Worst Taxpayer ROI – WalletHub Study

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.

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.

States with Best Taxpayer ROI States with Worst Taxpayer ROI
1. New Hampshire 41. Arkansas
2. Florida 42. Nevada
3. South Dakota 43. Oregon
4. Missouri 44. New York
5. Ohio 45. Delaware
6. Wisconsin 46. North Dakota
7. Nebraska 47. California
8. Rhode Island 48. Alaska
9. Iowa 49. Hawaii
10. Virginia 50. New Mexico

Best vs. Worst

  • Red States have a higher taxpayer return on investment, with an average ranking of 21.77, compared with 31.58 for Blue States (1 = Best).
  • Alabama has the lowest proportion of major roads in poor or mediocre condition, which is 7.4 times lower than in Rhode Island, the state with the highest.
  • Maine has the fewest violent crimes per 1,000 residents, which is 7.3 times lower than in New Mexico, the state with the most.
  • Massachusetts has the lowest infant mortality rate per 1,000 live births, which is 2.8 times lower than in Mississippi, the state with the highest.

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