Report: Florida ranked No. 2 in taxpayer return on investment

by | Mar 22, 2022

Florida is among the states with the best taxpayer return on investment (ROI), according to a new study conducted by WalletHub.

With Tax Day coming up on April 18 and 44 million Americans forecast to pay this year’s taxes late due to the COVID-19 pandemic, WalletHub released its yearly report on Tuesday, comparing all 50 states to find out where taxpayers get the most and least bang for their buck. The Sunshine State once again boasted a high score, with researchers ranking Florida as the 2nd best taxpayer ROI state.

Compared to other states, Florida set the bar high for states getting the most out of their investments. WalletHub found that Florida ranked second in total taxes per capita and overall ROI. The state also topped the list in several other categories, including education and health.

“Florida has the second-highest taxpayer ROI in the country. Despite paying the second-lowest taxes, less than $2,600 annually, the state’s residents benefit from government services that are above average in quality. The education system in particular is one of the best-rated nationwide. Florida has a high-quality public university system and a projected 10% increase in the public high school graduation rate in the next ten years. The state also offers school programs such as education savings accounts, school vouchers or tax-credit scholarships,” said WalletHub analyst Jill Gonzalez.

In order to determine its rankings, the personal-finance website evaluated each state’s tax burden (local and state) and compared it to the quality of services taxpayers receive in five main categories: Education, Health, Safety, Economy, and Infrastructure & Pollution. The data set included 30 key metrics, each graded on a 100-point scale, with a score of 100 representing the best ROI. All metrics were used to calculate an overall score for each state.

Florida was edged out by New Hampshire, who took the top spot on the list, followed by South Dakota which landed at No. 3. The bottom three worst states on the list were North Dakota, New Mexico and Hawaii.

To view the full study, click here.


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