Tax

The biggest bang for your tax buck

What do you want for your taxes? And are you getting it?

The answer will vary from person to person (and state to state), but the calculation is likely to balance how much you pay against the range and quality of services your state provides.

That's exactly how WalletHub calculated its 2026 rankings of the best and worst states for taxpayer ROI, combining total tax rates with individual state performance on a number of metrics — including quality of schools, roads and bridges, violent crime rate, water quality and many more — to produce an overall score for return on tax investment.

"There can be a tradeoff between how much tax you pay and what you receive in return from the government," explained WalletHub analyst Chip Lupo. "Several of the states with the best taxpayer ROI don't charge any income tax, and residents pay less at tax time while receiving good-quality (though not necessarily the best) government services. At the same time, while people pay more in states that do charge income tax, they may benefit from better infrastructure, education, safety or public health as a result."

Interestingly, only three of the states with high ROI made WalletHub's list of the 10 worst or the 10 best states in terms of overall tax burden.

Below are the 10 best states for ROI, which represent an interesting mix of high- and low-tax states.

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10. Virginia

Rank by total taxes paid: 30
Rank by overall government services: 4
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9. Utah

Rank by total taxes paid: 29
Rank by overall government services: 5
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8. Indiana

Rank by total taxes paid: 21
Rank by overall government services: 16
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7. Iowa

Rank by total taxes paid: 23
Rank by overall government services: 11

Iowa has the eighth-highest overall state tax rate in the country.
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6. Georgia

Rank by total taxes paid: 8
Rank by overall government services: 33
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5. Ohio

Rank by total taxes paid: 25
Rank by overall government services: 9

Ohio has the ninth-highest overall state tax rate in the country.
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4. Missouri

Rank by total taxes paid: 4
Rank by overall government services: 34
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3. South Dakota

Rank by total taxes paid: 6
Rank by overall government services: 18
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2. Florida

Rank by total taxes paid: 2
Rank by overall government services: 23

Florida has the ninth-lowest overall state tax rate in the country.
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1. New Hampshire

Rank by total taxes paid: 1
Rank by overall government services: 1

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