South Dakota's tax-friendly status has been a big selling point over the years for the state, luring businesses and families alike with the promise of no state income tax.

But just because we don't contribute to the state's tax coffers with a portion of each paycheck doesn't mean we get shortchanged when it comes to services and infrastructure.

A new study from WalletHub has South Dakota ranked third in the nation in terms of return on investment for the tax money that is collected through the property and retail taxes.

The website ranked each state in five key areas dealing with the quality of the services residents receive: education, health, safety, economy, and infrastructure, and pollution.

South Dakota's highest marks came in infrastructure and pollution (4th overall), total taxes per capita (6th), and health (6th).

The infrastructure and pollution score was high especially considering South Dakota's roads and bridges are ranked fourth-worst in the nation.

The health ranking was boosted by the state having the second-best hospital system in America.

The Mount Rushmore State was above average in the economy (21st), but below average in safety (29th) and education (39th).

BEST STATES FOR RETURN ON TAXPAYER INVESTMENT (WalletHub)

  1. New Hampshire
  2. Florida
  3. South Dakota
  4. Virginia
  5. Missouri
  6. Ohio
  7. Georgia
  8. Nebraska
  9. Texas
  10. Tennessee

WORST STATES FOR RETURN ON TAXPAYER INVESTMENT (WalletHub)

  1. Hawaii
  2. New Mexico
  3. California
  4. North Dakota
  5. New York
  6. Arkansas
  7. Delaware
  8. Louisiana
  9. Nevada
  10. Vermont

Overall, the survey found that 60 percent of adults in the United States say they pay too much in taxes, while 88 percent don’t think that the government uses tax revenue wisely.


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