Best and worst US states for 'Taxpayer ROI' (2024)

FAQs

Which US state has the best ROI? ›

1. Wyoming: 203% 5-year ROI on College. Wyoming has some of the highest wages for high school graduates: $31,936 a year, on average. This results in a 43 percent increase in pay for earning a bachelor's degree.

New Hampshire ranked number one for taxpayer ROI and California ranked dead last. "States with higher tax burdens do not necessarily provide better government services," said Jill Gonzalez, a WalletHub analyst.

(NewsNation) — A new survey from WalletHub shows that New Hampshire and Florida are two of the best states for taxpayers to live if they want to see more bang for their tax bucks.

In 2020, the average American contributed 8.9% percent of their income in state taxes. Alaska had the lowest average overall tax burden – measured as total individual taxes paid divided by total personal income – at 5.4%, followed by Tennessee (6.3%), New Hampshire (6.4%), Wyoming (6.6%) and Florida (6.7%).

Overall, in the calendar year 2022, the United States' Nominal GDP at Current Prices totaled at $25.463 Trillion, as compared to $23.315 Trillion in 2021. The three U.S. states with the highest GDPs were California ($3.6 Trillion), Texas ($2.356 Trillion), and New York ($2.053 Trillion).

The states with the highest income are either on the West or East Coast. Massachusetts has the highest average salary in the country. New York, Washington, and California have a high cost of living and are home to a large number of Fortune 500 companies.

The state ranked fifth for the best ROI in the U.S. According to a recent study by WalletHub, different states have different tax burdens — begging the question of whether people in high-tax states receive superior government services, and if low-tax states receive low-quality services.

US real estate values rose throughout 2022, and as a result, sellers made more profit.

Where is the best place to live for tax purposes? ›

1. Cheyenne, Wyoming. While not an obvious candidate, Cheyenne, Wyoming tops the list of U.S. cities with the lowest tax rates. Cheyenne tax rates are low across the board, with an average 9.7% rate for lower-income families.

1. Alaska. Alaska is the most tax-friendly state for retirees because it has no state income tax or tax on Social Security. And its sales tax rate is the fourth lowest on our list - fifth lowest in the U.S. But keep this in mind: The cost of living in Alaska is higher than in most states.

States With Highest Tax Burden

The ten states with the highest tax burdens are New York, Connecticut, Hawaii, Vermont, California, New Jersey, Illinois, Virginia, Delaware, and Maine. Among the states with the highest tax burden, New York tops the list with a state-local tax burden at 15.90%.

Twenty-one states and the District of Columbia have progressive rate structures that rise after $25,000. California, New Jersey, and Vermont have the most progressive rate structures by a wide margin.

1. Massachusetts. Learn more about Massachusetts.

The latest edition of the Best States rankings project finds a new No. 1 and a strong showing from the West and Midwest in the top 10. Utah has taken the No.

Utah's economy and fiscal stability is the best in the nation, according to US News and World Report. In its 2023 Best States Rankings, Utah edged out Washington for the top economic spot, which Washington enjoyed for the previous two years. Idaho ranked 2nd in the same two categories: Economy and Fiscal Stability.

What state is the happiest? ›

Massachusetts: “The Happiest State in the U.S.”

Our research studies reveal that the state of Massachusetts topped the rankings for 3 of our categories: Well-being, Mental Health, and Family, and featured in the top 11 states for three more: Health Care, Financial Security, and Work.

The combined tally of investment of three years makes Maharashtra the most attractive investment destination, states the survey. The investment is more than Karnataka ( ₹2,93,149 crore, 331 projects) and Gujarat ( ₹ 2,36,866 crore, 602 projects), states the survey.

The U.S. stock market is considered to offer the highest investment returns over time. Higher returns, however, come with higher risk. Stock prices typically are more volatile than bond prices.

In terms of what constitutes a 'good' gross yield in real estate, anything between 7-8% is considered ideal. A gross yield of 8% means that 8% of the cost of the property will be recouped in rent every year (before expenses).

The return on investment (ROI) was calculated based on housing price appreciation, rental income, and exchange rate fluctuations. Ten U.S. cities made it to the top 50 on the return on investment list, including Philadelphia, Phoenix, Houston, Sacramento, Tampa, Dallas, Orlando, Nashville, New York and Atlanta.

Great job opportunity coupled with a reasonable cost of living makes Texas a gem for young professionals. According to Zillow, the median home price in Texas is $190,000 and the average rent price is about $1,500. Due to the fact that Texas is absolutely massive, they have practically endless land to build on.

As the 9th largest economy among the nations of the world, Texas offers a combination of unique competitive business advantages that no other state can claim: a business-friendly climate—with no corporate or personal income tax—along with a highly skilled and diverse workforce, easy access to global markets, robust ...

There are no state taxes on social security, pension funds, IRAs, 401(k)s, or other retirement incomes, which makes the state specifically attractive to folks over the age of 65. Florida has no state income tax which is another upside for those who choose to move to the Sunshine State, whether they are retiring or not.

Additionally, Florida has a low state tax rate and a relatively low cost of living, making it a cost-effective place for retirees to live. In addition to its warm weather and affordable living expenses, Florida has a wealth of recreational activities and attractions that appeal to retirees.

Contrary to common belief, Florida is actually a good state for off grid living. However, some laws might make it difficult or even impossible to live the type of life you want legally. Here's what you need to know about Florida off grid laws. Want to know more about living off grid?

What are the most dysfunctional states? ›

Based on that criteria, I concluded that the most dysfunctional states were, in descending order, New York, Nevada, Illinois, Alaska, South Carolina and California. To fully understand the nature of these states' governments at the time, it's worth remembering who was in charge back then.

On the other end of the list is Mississippi. While the state offers the lowest cost of living and the lowest wage costs, Mississippi's workforce is among the nation's least educated. It is also the least productive state in terms of economic output per job, CNBC said.

President Biden's home state of Delaware has long been renowned for its use as a tax haven, beginning in the late 19th century. Reliably Democratic in national politics, Delaware still ranks at the top among U.S. states providing secrecy for corporations and ultra-high-wealth individuals, both domestic and foreign.

Some of the most popular countries that offer the financial benefit of having no income tax are Bermuda, Monaco, the Bahamas, and the United Arab Emirates (UAE). There are a number of countries without the burden of income taxes, and many of them are very pleasant countries in which to live.

1. Hawaii. Hawaii residents enjoy the lowest property tax rate in the U.S. However, the high cost of living and limited housing opportunities make it a very expensive place to live.

Social Security benefits may or may not be taxed after 62, depending in large part on other income earned. Those only receiving Social Security benefits do not have to pay federal income taxes.

To acquire the full amount, you need to maximize your working life and begin collecting your check until age 70. Another way to maximize your check is by asking for a raise every two or three years. Moving companies throughout your career is another way to prove your worth, and generate more money.

Fortunately, there are some states that don't charge taxes on retirement income of any kind: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming.

States that have no income tax aren't excessively wealthy and benevolent. They simply have a different structure for raising revenue. With no income tax dollars coming in, these states must get that revenue from other sources. Typically, this translates to higher sales taxes, property taxes and/or gasoline taxes.

As of 2023, eight states — Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming — do not levy a state income tax. A ninth state, New Hampshire, does not tax earned income, but it does impose a 4% tax on dividends and interest. This is set to expire in 2027.

What states have the highest tax returns? ›

Wyoming is the most tax-friendly state, where residents pay $3,438. For a typical middle-class family, the tax burden difference between living in the highest-tax state (Illinois) and the lowest-tax state (Wyoming) is $11,340 per year.

Though Texas has no state-level personal income tax, it does levy relatively high consumption and property taxes on residents to make up the difference. Ultimately, it has a higher effective state and local tax rate for a median U.S. household at 12.73% than California's 8.97%, according to a new report from WalletHub.

Washington State is the most regressive, followed by Texas, Florida, South Dakota, Nevada, Tennessee, Pennsylvania, Illinois, Oklahoma, and Wyoming. Heavy reliance on sales and excise taxes are characteristics of the most regressive state tax systems.

Tennessee ranked 10th in the U.S. in taxpayer ROI, with a ranking of fourth in Total Taxes Paid per Capita and 42nd in Overall Government Services.

What Types of Commercial Properties Are the Most Profitable? High-Tenant Properties – Typically, properties with a high number of tenants will give the best return on investment. These properties include RVs, self-storage, apartment complexes, and office spaces.

Where do Americans invest the most? ›

The time value of money (TVM) is the concept that a sum of money is worth more now than the same sum will be at a future date due to its earnings potential in the interim. The time value of money is a core principle of finance. A sum of money in the hand has greater value than the same sum to be paid in the future.

The U.S. stock market is considered to offer the highest investment returns over time. Higher returns, however, come with higher risk. Stock prices typically are more volatile than bond prices.

According to conventional wisdom, an annual ROI of approximately 7% or greater is considered a good ROI for an investment in stocks. This is also about the average annual return of the S&P 500, accounting for inflation.

Most investors would view an average annual rate of return of 10% or more as a good ROI for long-term investments in the stock market. However, keep in mind that this is an average.

ROI of 50% can be considered good, but there are other factors to consider to understand if your investment was a good one. You should also compare your ROI from previous years to get a better understanding.