Tax day is fast approaching, but a new report might ease the dread for Texas taxpayers. According to WalletHub, Texas ranks among the 10 states where residents get the biggest bang for their taxpayer buck.
"Tax day can be a painful reminder of how much we have to invest in federal, state, and local governments, though many of us are unaware of exactly what they give us in return," the report says. "As a result, this creates a disconnect in the minds of taxpayers between the amount of money we should fork over every April and how much we deserve in return."
The financial site set out to determine the states with the best and worst taxpayer return on investment by reviewing state and local tax collections, as well as the quality of government services residents receive. Texas ranks No. 7 on the list of states with the best taxpayer ROI for 2019, in part because residents pay among the least amount of taxes in the country.
While we rank No. 5 for lowest taxes paid per capita, Texas ranks No. 38 for quality of government services, which WalletHub broke down into five categories: education, health, safety, economy, and infrastructure and pollution.
The Lone Star State's economy ranks 18th, but we fall behind elsewhere: 31st in health, 34th in education, 39th in safety, and 49th in infrastructure and pollution. Texas particularly stands out in a ranking of roads and bridges, coming in at No. 46, which means only a few states have worse conditions.
The best state for taxpayer ROI is New Hampshire, which ranks No. 2 for taxes paid and No. 7 for services received.
In a separate report published this month, WalletHub examined 2019 tax burdens by state, finding that Texas ranks 33rd with a total tax burden of 8.18 percent. Texas' property tax burden is high — 3.82 percent (No. 11 in the country) — and the state's sales and excise tax is a steep 4.36 percent (No. 10). Offsetting those costs, of course, is the fact that the Lone Star State boasts no state income tax.