The states that do the most and least with your tax money

WalletHub set out to find which states actually put your hard-earned tax dollars to good use

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Most of us wish we could pay less in taxes. But which states are actually putting that tax money to good use?

WalletHub set out to find the states with the best “return on investment” — considering how much residents pay in taxes and the kind and quality of services their state provides in return.

“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,” said WalletHub analyst Chip Lupo. “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.”

Continue reading to see which states topped the list — and which received the lowest rankings.

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Missouri earns its fourth-place ranking by keeping taxes among the lowest in the country while maintaining a strong economy.

3rd best: South Dakota 

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South Dakota has no income tax. It also has both the lowest unemployment and underemployment rates in the nation, WalletHub said, securing its third-place ranking.

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Florida ranked second because it also doesn’t charge state income tax, but still delivered solid returns — including the highly-rated public university system and a strong infrastructure rating.

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New Hampshire ranked first with no state income tax and some of the best government services in the country, including very strong public schools. The state also has low crime, low unemployment, and low poverty rates.

4th worst: North Dakota

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North Dakota carries the highest per-capita tax burden in the nation, but only provides average government services overall, including middling scores for its economy and schools.

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Hawaii residents pay some of the highest taxes in the country, ranking 49th, yet receive only decent government services in return. The state has especially poor public schools, WalletHub said.

2nd worst: California

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California's high tax burden — 47th in total taxes paid per capita — is undercut by weak returns in safety, economy, and infrastructure, where the state ranks 43rd, 47th, and 49th, respectively. Strong educational performance at ninth wasn’t enough to help its ranking.

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New Mexico ranks last overall, finishing 50th in both government services and safety, and near the bottom in education and economy. Residents receive poor returns across nearly every category despite a high tax burden.

© Quartz