
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.