In True Cost of a Criminal Conviction, we examine how fines, fees, and hidden expenses like lost income and medical bills create lasting financial strain.
Using data from prison reform organizations, we reveal the broader economic impact on individuals and communities, highlighting the long-term consequences of these financial penalties.
Our findings reveal that fines and fees disproportionately impact low-income communities and people of color, creating lasting financial strain. We examine who benefits from these revenues and highlight the states and cities with the most severe penalties.
The High Price of Wrongful Convictions
A wrongful conviction can derail a life in countless ways. Our findings, based on statistics analyzed from the Brennan Center for Justice, indicate that the cost of a wrongful conviction in the United States is estimated to be $6.1 million on average, or $1,334 per day of incarceration.
Apart from direct financial losses, wrongfully convicted individuals also face:
- Job loss
- Custody issues
- Eviction and housing instability
An estimated 4% to 5% of the U.S. prison population is innocent, with over 3,500 exonerations since 1989.
States like Illinois, Texas, New York, and California have some of the highest wrongful conviction rates, often due to underfunded public defense, racial disparities, and weak prosecutorial oversight. These cases expose deep flaws that demand systemic reform.
Costs for Individuals: Lost Income, Employment Barriers, and More
Once a conviction—wrongful or otherwise—occurs, individuals face a wide range of economic burdens. Drawing on data analyzed from the Prison Policy Initiative, we found:
- Lost income: Incarcerated individuals lose an average of $500,000 in lifetime earnings.
- Employment barriers: Roughly 27% of formerly incarcerated people remain unemployed, largely due to employers’ reluctance to hire someone with a record.
- Medical costs: Incarcerated individuals often pay high copays or fees, especially if they have chronic conditions.
- Probation and supervision fees: Mandatory classes, court appearances, and supervision charges add to an already difficult financial situation.
- Low wages behind bars: Incarcerated workers earn an average of $0.86 per day.
Additionally, over 460,000 people are detained pretrial at any given time, many because they cannot afford bail. The median felony bail amount stands at $10,000, yet approximately one-third of those booked into jail earn less than that each year.
Destabilizing Impacts of Fines and Fees
Community-Level Expenses
Our research into community costs reveals an equally concerning picture. According to the Prison Policy Initiative:
- Government expenditures: The U.S. government spends $80.7 billion annually on public prisons and jails, plus $3.9 billion on private prisons.
- Social and economic impact: When factoring in lost productivity and recidivism expenses, mass incarceration costs can rise to $1 trillion annually.
- Family burdens: Families spend $2.9 billion each year on phone calls and commissary items.
Resource-poor communities face higher recidivism, fueling incarceration and straining public budgets. In Louisiana, jails earn $26.39 per inmate daily, incentivizing full cells and perpetuating the cycle.
Who Profits from Incarceration?
While incarceration represents a major expense for many, certain entities benefit financially. Our analysis shows:
- Private prisons: They receive a share of the $3.9 billion in government spending on private facilities each year.
- Third–party fees: Companies providing drug tests or electronic monitoring also profit.
- Government revenue: Fines and fees are often meant to reimburse courts, but they can push economically disadvantaged people deeper into debt.
According to the Tax Policy Center, state and local governments collectively earned nearly $14 billion in fines, fees, and forfeitures in 2022—only 0.3% of their total general revenue. Smaller cities tend to rely more heavily on this income than larger cities.
Where Are Fines and Fees Highest?
Fines are generally imposed as punishment (e.g., speeding tickets), while fees aim to recoup costs (e.g., court administrative fees). Yet both can significantly strain those with limited financial resources.
Below, we list specific areas that stand out based on data gathered and analyzed from the Brennan Center for Justice, the Prison Policy Initiative, and Innovating Justice.
Top 10 States with the Highest Fines
States with the highest fines often rely on court-imposed penalties as a significant revenue source, disproportionately impacting low-income communities.
- Texas
- Florida
- Georgia
- California
- Illinois
- Missouri
- Pennsylvania
- Michigan
- New York
- Alabama
These states typically collect high revenue from court-imposed fines and traffic penalties. Larger population centers and stricter enforcement policies drive these totals.
Top 10 Cities with the Highest Fines
Many smaller cities rely heavily on fines as a primary revenue source, sometimes collecting more from penalties than from property or sales taxes.
- Ferguson, Missouri
- Harpersville, Alabama
- St. Ann, Missouri
- Clarkston, Georgia
- Lauderdale Lakes, Florida
- Morrow, Georgia
- Jennings, Missouri
- New Miami, Ohio
- Sunset Valley, Texas
- Linndale, Ohio
Smaller municipalities often resort to fines to cover budget shortfalls, sometimes collecting more in fines than in property or sales taxes.
Highest vs. Lowest States
Some states impose steep fines as a primary enforcement tool, while others rely on broader tax revenue rather than punitive financial penalties.
- Highest: Texas, Georgia, Florida, California, and Missouri lead in imposing steep fines for various infractions, especially traffic-related violations.
- Lowest: States like North Dakota, Maine, and Vermont generally enforce lower fees and fines, relying more on broad-based taxes rather than punitive measures for revenue.
States with the Highest Fines for Speeding
These states can levy hefty base penalties plus court costs and added surcharges.
- California
- Texas
- Georgia
- Illinois
- Virginia
States with the Lowest Fines for Speeding
These states’ laws and local policies often emphasize education and driver safety over punitive penalties.
- North Dakota
- Wyoming
- Maine
- New Hampshire
- Ohio
The Role of Fines and Fees
Our study shows the significant impact fines and fees can have on everyday life. Insights from the Fines and Fees Justice Center reveal:
- Nearly 1 in 3 Americans have faced fines or fees in the past decade.
- 26% are still paying off that debt, and about one-third of those individuals do not anticipate ever clearing it.
- 27% reported housing hardship, while 35% struggled to afford food due to court debt.
- 14% saw their healthcare decline because they could not pay for both medical expenses and court costs.
Percentage of Impacted Domains
Living Situation Prior to Incurring Court Ordered Fines/Fees
Why It Matters
The significant financial hardship tied to criminal convictions—wrongful or otherwise—demonstrates the urgent need for reform. Our analysis highlights:
- Disproportionate impact on marginalized communities: People already in difficult economic situations suffer the most.
- Crippling cycle: Ongoing debt can lead to housing loss, insufficient access to healthcare, and further legal challenges.
- Opportunity for change: Policymakers can explore alternatives to cash bail, reduce private-sector profiteering, and adjust the reliance on court-imposed fees.
Moving Toward Equity
We believe an equitable system must account for both the financial realities of defendants and the broader social consequences of punitive policies.
Reform requires rethinking cash bail, improving oversight of private-sector fees, and reconsidering statutory fines that disproportionately target those least able to pay.
The Urgent Need for Reform
By examining wrongful convictions, pretrial detention, and fines, we see a clear need for systemic reform. These financial burdens strain individuals and divert resources from social programs and public safety. An Atlanta criminal defense lawyer plays an important role in protecting those affected.
Viewing the justice system through a social impact lens makes the need for change undeniable. Explore our findings to understand the hidden costs of criminal convictions—and how reforms could create a fairer system.