Study: Colorado 10th state least dependent on federal government

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478335167A recent study by personal finance social network WalletHub found Colorado the 10th state least dependent on the federal government.

The report ranked the state eighth in lowest return of federal income tax ($0.84), 15th in highest independent state revenue and 35th in lowest number of federal employees per capita (10.67).

WalletHub compared 50 states and the District of Columbia based on three metrics:

  1. federal tax returns;
  2. federal funding as a percentage of state revenue; and
  3. number of federal employees per capita.

Delaware ranked as the least federally dependent state while states including Mississippi, New Mexico and Alabama were found to be the most dependent. Colorado came in behind Massachusetts and ahead of New Hampshire.

WalletHub also recently published online its 2014 Best & Worst States for Taxpayers Report, in which Colorado also placed 10th, with average state and local tax withholdings of $5,674 (19 percent under the national average). The adjusted rank of Colorado, based on the cost-of-living index, is 14.

Wallet Hub’s 2014 Best and Worst States for Taxpayers Report was based on eight different types of taxation to determine three things:

  1. which states have the highest and lowest tax rates;
  2. how those rates compare to the national median; and
  3. which states offer the best tax rates when adjusted by the cost-of-living index.

Wyoming came in first and Colorado was just ahead of New Mexico but just behind North Dakota, according to the report.

Among the lowest ranked states were Nebraska, California and New York.

The full reports can be found at WalletHub.com.