Nearly three-quarters of Americans believe they pay excessive taxes, reveals a survey by WalletHub. However, Floridians enjoy a significant return on investment (ROI) from their tax dollars compared to most states, according to WalletHub’s recent assessment of states with the best and worst ROI for taxpayers.
ROI, a financial term, gauges the profitability of an investment. In the context of taxpayers, it measures what individuals and communities receive in exchange for their annual tax contributions. Factors indicating a high taxpayer ROI include robust public education, well-maintained infrastructure, and low unemployment rates.
WalletHub analyst Cassandra Happe notes that states offering favorable taxpayer ROI often do not impose income taxes. Although residents may pay less in taxes, they still benefit from decent government services. Conversely, states levying income taxes may provide better infrastructure, education, safety, or public health services.
Florida, ranking second in taxpayer ROI, owes its position to various advantages. Notably, Floridians are exempt from state income taxes. Furthermore, the state boasts high-quality public education, low unemployment, and a relatively high life expectancy.
The Sunshine State’s tax dollars contribute significantly to education, with the state housing the fifth-best public universities in the U.S. Additionally, Florida invests in primary and secondary education, boasting a high school graduation rate exceeding 90%. Infrastructure in Florida is commendable, with impressive bridge and road quality.
The study also highlights Florida’s low unemployment rate and above-average life expectancy, despite its hospitals ranking relatively low.
WalletHub’s top ten states with the highest taxpayer ROI are:
- New Hampshire
- Florida
- South Dakota
- Missouri
- Ohio
- Texas
- Iowa
- Wisconsin
- Virginia
- Nebraska
Tax season commenced in January, with the IRS accepting returns. CNBC reports that the IRS has processed approximately 62 million returns and issued over 43 million refunds as of the week of March 8. Taxpayers have until Monday, April 15, 2024, to file their returns unless they apply for an extension.
Tax refunds typically arrive within 21 calendar days if there are no issues. Taxpayers can track their refund status using the IRS’s “Where’s my tax refund?” tool, which requires their social security number, filing status, and refund amount.