The Best State Economies in America (2026)
Hawaii has the strongest state economy in 2026 with a score of 90.0/100, followed by New Hampshire (84.5), Maryland (83.6), Virginia (72.2), and South Dakota (70.3). Rankings are based on unemployment rate and median household income from BLS and Census Bureau data. West Virginia ranks last at 13.9.
Key Takeaways
- 1Hawaii leads the nation in economy with a score of 90.0, 5.5 points ahead of #2 New Hampshire. The top 3 is rounded out by Maryland at 83.6.
- 2The top 10 is spread across regions — no single region claims more than 3 of the top spots. This suggests economy performance depends more on state-level policy than geographic location.
- 3The 76.1-point gap between #1 Hawaii and #50 West Virginia is one of the widest spreads across all categories. The median state scores 45.7, meaning half of all states fall below this threshold.
- 4The bottom 5 — Arkansas, Kentucky, Louisiana, Nevada, West Virginia — are concentrated in the South, with 4 of 5 from that region. West Virginia ranks last with a score of 13.9, signaling persistent challenges in economy.
- 5Despite ranking #1 in economy, Hawaii sits at #21 overall — a notable divergence that shows category leadership doesn't always translate to top composite scores. This gap suggests Hawaii has room to improve in other areas to climb the overall rankings.
Related Analysis
Which States Have the Best Economies in 2026? Jobs & Income Ranked
A strong economy is more than a single number. It's whether you can find a job, whether that job pays enough to live on, and whether the trajectory is up or down. We scored all 50 states using BLS unemployment data, Census Bureau median incomes, BEA GDP per capita, and economic growth rates.
Read the full analysis →| Rank | State | Grade | Economy Score | Overall Score | Key Metrics | Region |
|---|---|---|---|---|---|---|
| 1 | Hawaii | A+ | 90.0 | 63.2 | 2.2% unemp · $94,814 income | West |
| 2 | New Hampshire | A+ | 84.5 | 87.8 | 2.8% unemp · $97,880 income | Northeast |
| 3 | Maryland | A+ | 83.6 | 67.7 | 2.9% unemp · $98,461 income | Northeast |
| 4 | Virginia | A+ | 72.2 | 74.9 | 2.9% unemp · $87,106 income | South |
| 5 | South Dakota | A+ | 70.3 | 81.8 | 2% unemp · $72,280 income | Midwest |
| 6 | Utah | A | 68.7 | 79.3 | 3.2% unemp · $87,804 income | West |
| 7 | North Dakota | A | 67.7 | 76.6 | 2.2% unemp · $72,583 income | Midwest |
| 8 | Minnesota | A | 63.6 | 76.7 | 3.4% unemp · $85,551 income | Midwest |
| 9 | Colorado | A | 63.6 | 66.2 | 3.8% unemp · $91,340 income | West |
| 10 | Vermont | A | 62.9 | 79.6 | 2.7% unemp · $74,919 income | Northeast |
| 11 | Nebraska | B+ | 60.0 | 74.9 | 2.8% unemp · $73,423 income | Midwest |
| 12 | Connecticut | B+ | 59.8 | 73.5 | 4.2% unemp · $93,228 income | Northeast |
| 13 | Massachusetts | B+ | 57.9 | 72.8 | 4.9% unemp · $101,370 income | Northeast |
| 14 | Wisconsin | B+ | 56.2 | 65.2 | 3% unemp · $72,458 income | Midwest |
| 15 | Iowa | B+ | 56.1 | 69.5 | 3% unemp · $72,429 income | Midwest |
| 16 | New Jersey | B+ | 55.1 | 65.9 | 4.8% unemp · $97,126 income | Northeast |
| 17 | Idaho | B+ | 49.8 | 70.7 | 3.2% unemp · $68,930 income | West |
| 18 | Maine | B+ | 49.7 | 77.3 | 3.2% unemp · $68,810 income | Northeast |
| 19 | Kansas | B | 49.2 | 59.3 | 3.3% unemp · $69,747 income | Midwest |
| 20 | Wyoming | B | 48.4 | 69.4 | 3.5% unemp · $71,847 income | West |
Show all 50 states ▾Show fewer ▴
| 21 | Georgia | B | 47.9 | 51.5 | 3.5% unemp · $71,355 income | South |
| 22 | Alabama | B | 47.6 | 38.9 | 2.7% unemp · $59,613 income | South |
| 23 | Rhode Island | B | 46.9 | 69.8 | 4.3% unemp · $81,800 income | Northeast |
| 24 | Washington | B | 46.9 | 61.4 | 4.9% unemp · $90,325 income | West |
| 25 | Montana | B | 46.1 | 71.1 | 3.7% unemp · $72,340 income | West |
| 26 | Missouri | B | 45.7 | 49.3 | 3.2% unemp · $64,811 income | Midwest |
| 27 | New York | C+ | 43.7 | 58.4 | 4.5% unemp · $81,386 income | Northeast |
| 28 | North Carolina | C+ | 43.5 | 53.7 | 3.5% unemp · $66,880 income | South |
| 29 | Tennessee | C+ | 43.5 | 46.8 | 3.3% unemp · $64,036 income | South |
| 30 | Indiana | C+ | 42.4 | 50.7 | 3.5% unemp · $65,870 income | Midwest |
| 31 | Pennsylvania | C+ | 41.8 | 60.3 | 4.1% unemp · $73,823 income | Northeast |
| 32 | California | C+ | 41.3 | 42.9 | 5.4% unemp · $91,905 income | West |
| 33 | Oklahoma | C+ | 40.0 | 41.5 | 3.3% unemp · $60,528 income | South |
| 34 | Arizona | C+ | 39.7 | 44.7 | 4.3% unemp · $74,568 income | West |
| 35 | Texas | C | 39.6 | 45.8 | 4.2% unemp · $73,035 income | South |
| 36 | Illinois | C | 39.2 | 52.0 | 4.6% unemp · $78,304 income | Midwest |
| 37 | South Carolina | C | 38.6 | 44.0 | 3.5% unemp · $62,064 income | South |
| 38 | Florida | C | 36.7 | 52.8 | 4.3% unemp · $71,516 income | South |
| 39 | Alaska | C | 35.0 | 42.1 | 5.3% unemp · $84,143 income | West |
| 40 | Delaware | C | 32.1 | 52.3 | 5.2% unemp · $79,810 income | Northeast |
| 41 | Ohio | C | 31.7 | 49.1 | 4.1% unemp · $63,715 income | Midwest |
| 42 | Oregon | C | 27.1 | 58.1 | 5.4% unemp · $77,630 income | West |
| 43 | New Mexico | D | 26.9 | 33.1 | 4% unemp · $57,488 income | West |
| 44 | Mississippi | D | 26.7 | 31.5 | 3.7% unemp · $52,985 income | South |
| 45 | Michigan | D | 25.1 | 47.7 | 4.9% unemp · $68,505 income | Midwest |
| 46 | Arkansas | D | 22.9 | 30.9 | 4.2% unemp · $56,335 income | South |
| 47 | Kentucky | D | 22.7 | 38.4 | 4.5% unemp · $60,407 income | South |
| 48 | Louisiana | D | 20.6 | 25.9 | 4.3% unemp · $55,416 income | South |
| 49 | Nevada | F | 18.4 | 40.3 | 5.5% unemp · $70,448 income | West |
| 50 | West Virginia | F | 13.9 | 34.4 | 4.7% unemp · $54,515 income | South |
Top 10 States for Economy
Frequently Asked Questions
What is the best state economy in America in 2026?
Hawaii has the best economy in 2026 with an economy score of 90.0/100, followed by New Hampshire (84.5) and Maryland (83.6). Rankings are based on unemployment rate data from the Bureau of Labor Statistics (2025) and median household income from the U.S. Census Bureau's American Community Survey (2024). Hawaii combines a 2.2% unemployment rate with a median household income of $94,814, which is significantly above the national average. States with both low unemployment and high incomes earn the top spots, because a strong economy means residents can actually find jobs that pay a livable wage.
Which states have the worst economies?
The states with the weakest economies in 2026 are West Virginia (13.9/100), Nevada (18.4), and Louisiana (20.6). These states struggle with higher unemployment rates and lower median incomes compared to the national averages. West Virginia has an unemployment rate of 4.7% and a median income of $54,515. The gap between the best and worst economy scores is 76.1 points, illustrating the dramatic economic disparity between states. Lower-performing states often face structural challenges like limited industry diversity, geographic isolation, or historic underinvestment in workforce development.
How is the economy score calculated?
The economy score combines two key metrics: unemployment rate from the Bureau of Labor Statistics (BLS, 2025 data) and median household income from the Census Bureau's American Community Survey (ACS, 2024 data). Each metric is normalized to a 0-100 scale using linear interpolation across all 50 states. States with lower unemployment get higher scores for that component, while states with higher median incomes score better on the income component. The two are averaged into a single economy score. Economy carries a 15% weight in the overall composite score — the single largest factor — because economic opportunity is foundational to quality of life in virtually every other category.
Does cost of living affect the economy rankings?
Cost of living is tracked separately under the housing/affordability category, not the economy score directly. However, the two are related. A state with a high median income but an extremely high cost of living may not provide as much real purchasing power as a state with moderate income and low costs. For a more complete picture, compare economy scores alongside affordability scores. Some states like South Dakota offer strong economies with below-average costs of living, which means residents keep more of what they earn. Our affordability calculator at /affordability lets you see the real take-home picture for specific household types.
Which region has the strongest state economies?
Northeastern and Western states tend to dominate the economy rankings due to higher median household incomes driven by finance, tech, and professional services industries. However, several Southern and Midwestern states compete strongly on low unemployment, even if median incomes are lower. Among the top 10 economy states, the average unemployment rate is 2.6% and the average median income is $90,108. The median economy score across all 50 states is 45.7, meaning half of all states fall below this threshold. Regional economic patterns are shifting as remote work enables more geographic flexibility and Sun Belt states attract new businesses and residents.
How the Economy Score Is Calculated
Our economy score combines unemployment rate data from the Bureau of Labor Statistics (2025) and median household income from the U.S. Census Bureau's American Community Survey (2024). States with low unemployment and high incomes rank highest. The economy category carries a 15% weight in our overall composite score — the single largest factor in our rankings. States in the Northeast and West tend to dominate due to higher median incomes, while several Southern and Midwestern states compete strongly on low unemployment.