Money matters

Texas taxpayers get more for their money than most Americans, report says

Texas has one of the nation's highest returns on investment for taxpayers.

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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 sought 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.

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Settling Down

Houston earns top-10 rank among best places to retire in Texas in 2026

A Houston park with a bench and a little free library

Photo by Kenny Perez on Unsplash

Retirement unlocks more opportunities to spend time outdoors.

Houstonians getting ready to give up the daily grind are already living in a good place for their next chapter in life. Houston has just been named the No. 6 best city to retire in Texas, and it lands as the 82nd best city in the U.S., according to a new WalletHub report.

The study examined 182 U.S. cities and ranked them based on 45 "retirement-friendly" livability metrics across four key dimensions: affordability, activities, quality of life, and health care.

Perhaps unsurprisingly, Florida dominated the top 10, with Orlando, Miami, and Tampa locking in the top three spots and Fort Lauderdale ranking eighth on the list.

Houston fared best in the "affordability" category, ranking 35th nationally. This encompassed the local cost of living, taxpayer-friendliness, the costs for in-home services, and other factors. Costs were a significant factor in the report, as many retirees live on a fixed income.

Finances and affordability also play a huge part in determining where to live once it's time to put up those work boots, WalletHub analyst Chip Lupo said.

"As a result, the best cities for retired people are those that minimize taxes and expenses, as well as have good opportunities for retirees to continue paid work for extra income, if they choose to do so," he said. "In addition, the top cities provide high-quality health care and offer plenty of enjoyable activities for retirees."

The city also earned a respectable rank as No. 43 in the "activities" category, which analyzed attractions and entertainment venues for seniors, like the number of per capita museums, theaters, book clubs, senior centers, and bingo halls.

Houston fell behind in the remaining two nationwide categories for the best "health care" (No. 158) and "quality of life"(No. 167) for retirees.

Elsewhere in Texas, Austin topped the list as the No. 1 best place to retire statewide, and it ranked No. 23 nationwide. San Antonio ranked No. 2 statewide and 47th nationally, and Dallas claimed the No. 3 spot statewide and was the only other Texas city to rank among the national top 50.

This is how other Texas cities ranked in the report:

No. 75 – Plano
No. 78 – Fort Worth
No. 82 – Houston
No. 87 – Brownsville
No. 91 – Grand Prairie
No. 101 – Garland
No. 107 – Irving
No. 123 – El Paso
No. 124 – Arlington
No. 134 – Corpus Christi
No. 140 – Laredo
No. 143 – Amarillo
No. 155 – Lubbock

wallethub reports retirement city life rankings