Around 72% of Americans think that they currently pay too much in taxes, according to a taxpayer survey from WalletHub.
But there’s good news for Floridians (other than the obvious perk of no state income tax). Florida taxpayers see more return on investment from their tax dollars than most of the country, according to WalletHub’s recent list of states with the best and worst return on taxpayer investment.
Here’s what return on investment (ROI) means when it comes to paying your taxes, where Florida ranked on WalletHub’s list and why.
What is ROI in simple terms?
Return on Investment, or ROI, is finance jargon that describes whether an investment will be profitable. For taxpayers, it describes what you and your community get back from the tax dollars you pay out each year.
Some indicators of a high taxpayer ROI would be a high-quality public education system, strong infrastructure and low unemployment rates.
“There can be a tradeoff between how much tax you pay and what you receive in return from the government. 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,” WalletHub Analyst Cassandra Happe said in the study.
“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.”
Doing taxes for the first time in 2024?Here’s what you need to know to file in Florida
What are Florida's tax advantages?
Florida ranked as the state with the second-highest return on investment for its taxpayers, according to WalletHub’s study.
New Hampshire, also a state with no income tax, ranked in first place because of the state’s focus on putting tax dollars toward crime prevention and the environment.
Florida ranked in the top largely because Floridians don’t pay income taxes. Other reasons include high-quality public education, low unemployment and high life expectancy for Floridians.
“One way its tax dollars are hard at work is on education, as Florida has the fifth-best public universities in the U.S., as well as high-quality primary and secondary education, with a high-school graduation rate above 90%,” the study said.
“Florida’s infrastructure is pretty decent as well, with the eighth-best bridge quality and 15th-best road quality in the country. When it comes to most other services, Florida is toward the middle of the pack, but the lack of income taxes makes up for it.”
The study also mentioned that Florida has one of the lowest unemployment rates, and a high life expectancy for its residents, despite its hospitals ranking fairly low.
Where is the taxpayer ROI highest in the U.S.?
Here’s WalletHub’s list of the top 10 states where taxpayers see the most return on their investment:
- New Hampshire
- Florida
- South Dakota
- Missouri
- Ohio
- Texas
- Iowa
- Wisconsin
- Virginia
- Nebraska
Where is my refund? Has the IRS started issuing refunds for 2024?
Tax season began in January, when the IRS started accepting tax returns.
According to a report from CNBC, “The agency has processed about 62 million returns and issued more than 43 million refunds,” as of the week of March 8.
The last day to file your taxes is Monday, April 15, 2024, unless you file for an extension.
How fast do tax refunds come back with direct deposit?
According to the U.S. Department of Treasury, “Assuming no issues, the IRS issues tax refunds in less than 21 calendar days after the IRS receives the tax return.”
If you want to track the status of your tax refund, the IRS has a “Where’s my tax refund?” tool that will show you the status of your refund by using your social security number, filing status, and refund amount.
