You’re paying more, getting less: NM named worst state for taxpayers

As Tax Day approaches on April 15, a new WalletHub report ranks New Mexico dead last in the nation for taxpayer return on investment (ROI), raising serious questions about how effectively state government uses public funds.

The annual study from WalletHub evaluated all 50 states using 29 metrics across five key categories: education, health, safety, economy, and infrastructure & pollution. New Mexico ranked 50th overall despite having one of the highest tax burdens in the country.

The state placed near the bottom in nearly every category:

  • 49th in education
  • 42nd in health
  • 50th in safety
  • 45th in economy
  • 34th in infrastructure and pollution
  • 48th in total taxes per capita

“There can be a tradeoff between how much tax you pay and what you receive in return from the government,” said WalletHub analyst Chip Lupo. “Several of the states with the best taxpayer ROI don’t charge any income tax… 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.” But New Mexico, he implied, is not among those states.

Despite high tax revenues, the report indicates that New Mexico struggles to deliver high-quality public services. The state’s ranking of 50th in public safety is especially alarming, given ongoing concerns about violent crime and law enforcement shortages. Its poor education score also highlights persistent challenges in student performance and graduation rates.

Tax experts say measuring ROI requires more than looking at how much residents pay. It’s about outcomes.

“Everyday citizens can assess the return on investment of their tax dollars by examining how efficiently their local and state governments convert revenue into high-quality public services,” said Min Su, Ph.D., Associate Professor at Louisiana State University. “Efficiency is not simply about spending less; it is about spending wisely to achieve the best possible outcomes.”

New Mexico’s low ranking suggests a mismatch between spending and results. According to WalletHub’s methodology, New Hampshire topped the list, largely because it delivers strong outcomes in public safety, education, and environmental quality — all while charging no state income tax.

Lauren E. Haddad Washburn, a tax attorney and professor, advised residents to become more involved in municipal budgeting and to scrutinize how funds are spent. “Citizens can attend Board of Finance meetings, hearings, and other public forums… Comparing budgeted amounts versus actual spending can give insight into efficiency,” she said.

With 66% of Americans believing their taxes are too high, WalletHub’s findings may resonate especially loudly in New Mexico — where residents are paying more but getting far less in return.

To view the full report, visit here

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12 thoughts on “You’re paying more, getting less: NM named worst state for taxpayers”

  1. Awesome! Another list to highlight just how much NM S*cks!

    Here is the thing! New Mexico Republicans cannot and do not do anything about corruption in this state. They fold their hands in their laps and just leave things, important things, to die. Missed opportunity after missed opportunity to pass good laws, take charge and make New Mexico better for its people.

    The Democrat leadership in both Santa Fe and Washington are a true embarrassment. Their behavior is less than professional and does nothing more than highlight the lack of education and professionalism in this state.

    New Mexico, Gente, this question is for you and is about as blunt and honest as I can be with you all:
    When will you have enough of this failure and both vote out the corruption and hold any new leadership to high standards? Without this, NM is only going to s*ck more…

    Do Better NM!

  2. Marcello T. Hinojosa

    These bird brains running the state into the ground will never stop. VOTING is the only legal thing we can do. VOTE RED ALL THE TIME!

  3. As a 41-year resident, I don’t think I needed Wallet Hub to tell me something I already knew. Thank you Dimocrats for all your “hard work” to keep us at the “bottom of the barrel”.

  4. I am starting to regret my move back to Southern NM in 2019. I had many good memories from when I was stationed here in the USAF way back in 1979 and again in 1987. I left the terribly run state of CA. due to the one party rule of Demonrats that is destroying the state with high taxes and costs of living. I volunteered with the Republican party of both CA and N.M. to attempt to change the course laid out by democrats. I know am paying more in income taxes here than in CA. and that alone should be enough to make dems think twice about voting for people with D beside their names. If we don’t make the change from blue to red things will just continue to get worse because after all, the dems have been in charge and we are at the bottom of the good lists and the top of the bad lists.

    1. I’m not defending the Democrats with their lies and incompetence. I have been screaming from the rooftops about this, I moved here from SoCal 25 years ago to escape the suck and I see it happening here. That said I am still paying far less for crappy service here than I did in Cali…..

  5. I hate to say it but conservatives need to spread the word. Many NMs are misinformed or not informed at all. It is like on the internet when they ask college students who is the first president and they are clueless. NMs especially democrats are one and the same. First the democrat party of 79 is totally different than the democrat party of today. But if you are a democrat that does not watch the news or you watch the wrong news you will continue to vote for our marxist democrat party. Most dems vote democratically regardless how poorly the dems manage the state. So the answer is to spread the word, heck sent a copy of this article to your democratic friends. Heck even to your conservative friend so they can spread the word as wll.

  6. Once again yesterday’s comments are so appropriate. In essence NM has nothing to offer it’s citizens except high taxes and crime. The commies have done a great job of destroying this state. Unfortunately the road to change will be a long one! It didn’t get this bad overnight and it will take years , maybe decades to correct. A journey starts with a single step, reject communism, vote for constitutional candidates when able.

  7. Get in touch with your local Republican County Party, the information
    is on the RPNM website. The focus is to find conservative people to
    run for office in your area, then get them elected. This takes many involved people, not just talkers. There are many school board, legislative and municipal races coming up.

  8. New Mexico elected officials make sure that their biggest donors receive the most benefit for the taxes spent in the State. The tax paying citizens are not the priority.

    The corruption in New Mexico is on par with that in Mexico.

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