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California ranked 2nd worst on taxpayers’ return on investment

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A "Welcome to California" sign is shown near the California-Nevada border. (Famartin / Wikimedia Commons)

California ranked 2nd worst on taxpayers’ return on investment

May 17, 04:00 PM May 17, 04:00 PM

California finished 49th in a new study by the WalletHub website on whether residents of the 50 states are getting the most bang for the buck for their tax dollars.

The analysis, which noted that the taxpayer return on investment (ROI) is not uniform across the country, assigned each state a rank for total taxes paid per capita and an overall government services rank. From that information, WalletHub ranked each state on how efficient it was in spending state taxpayer revenue.

California was ranked 45th on taxes paid per capita and 37th on the quality of its government services. The government services rank was based on efficiency of public services provided in the areas of health, education, safety, economy, and infrastructure and pollution, according to WalletHub.

Though federal income taxes are consistent nationwide, some states receive more federal funds than others, and COVID-19 financial relief varies sharply among the states, the study concluded.

Tax Dollar Return on Investment, State by State

‘Taxpayer ROI’ Rank (1=Best) State ‘Total Taxes Paid per Capita’ Rank ‘Overall Government Services’ Rank 1 New Hampshire 2 9 2 Florida 1 30 3 South Dakota 6 21 4 Virginia 23 3 5 Missouri 3 38 6 Ohio 12 26 7 Texas 7 35 8 Georgia 9 34 9 Nebraska 24 12 10 Tennessee 4 41 11 Colorado 15 27 12 Kentucky 18 23 13 Iowa 32 8 14 Wisconsin 33 6 15 Indiana 22 18 16 Idaho 19 25 17 Utah 36 7 18 South Carolina 5 46 19 Maine 30 13 20 North Carolina 17 32 21 Montana 20 28 22 Rhode Island 31 16 23 Michigan 21 31 24 Alabama 8 45 25 Illinois 29 22 26 Pennsylvania 27 24 27 Arizona 13 43 28 Wyoming 38 14 29 Maryland 40 10 30 Oklahoma 14 42 31 Washington 39 20 32 Kansas 35 29 33 Minnesota 47 1 34 Alaska 10 48 35 Oregon 28 36 36 Massachusetts 42 11 37 West Virginia 25 39 38 New Jersey 41 15 39 Mississippi 16 47 40 Connecticut 46 5 41 Vermont 48 2 42 Louisiana 11 50 43 Arkansas 34 40 44 New York 43 19 45 Nevada 26 44 46 Delaware 44 17 47 North Dakota 50 4 48 New Mexico 37 49 49 California 45 37 50 Hawaii 49 33

Source: WalletHub.com

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