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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