Which States Have the Best Economies in 2026? Jobs & Income Ranked
Hawaii has the strongest state economy in 2026 with a score of 90.0/100, combining 2.2% unemployment with a median income of $94,814. All 50 states are ranked using BLS unemployment and Census Bureau income data.
The 10 strongest state economies
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.
Hawaii leads with an economy score of 90.0/100, combining 2.2% unemployment with a median household income of $94,814. New Hampshire (84.5) and Maryland (83.6) follow closely.
The national unemployment rate averages 3.8% and the national median income is $74,753. Among the top 10 economic states, the average unemployment is 2.8% and average income is $86,274.
| Rank | State | Score | Income |
|---|---|---|---|
| #1 | Hawaii | 90.0 | $94,814 |
| #2 | New Hampshire | 84.5 | $97,880 |
| #3 | Maryland | 83.6 | $98,461 |
| #4 | Virginia | 72.2 | $87,106 |
| #5 | South Dakota | 70.3 | $72,280 |
| #6 | Utah | 68.7 | $87,804 |
| #7 | North Dakota | 67.7 | $72,583 |
| #8 | Minnesota | 63.6 | $85,551 |
| #9 | Colorado | 63.6 | $91,340 |
| #10 | Vermont | 62.9 | $74,919 |
#1: Hawaii
Hawaii leads with an economy score of 90.0/100. Unemployment: 2.2%. Median household income: $94,814 — 27% above the national average. GDP per capita: $62,039. The state isn't just wealthy on paper — residents earn enough to offset a cost of living index of 109.
Hawaii ranks #21 overall with a composite of 63.2/100 and a B grade. Beyond the economy, the state scores 90.0 in economy and 83.7 in health. Broadband coverage at 93.7% supports the growing remote and hybrid workforce.
#2: New Hampshire
New Hampshire scores 84.5/100 economically, combining a 2.8% unemployment rate with a median income of $97,880 (31% above average). GDP per capita runs $68,816. Population growth of 0.6% suggests people see opportunity here.
New Hampshire ranks #1 overall with a composite of 87.8/100 and a A+ grade. Beyond the economy, the state scores 100.0 in health and 93.5 in safety. Broadband coverage at 95.7% supports the growing remote and hybrid workforce.
#3: Maryland
Maryland scores 83.6/100 economically, combining a 2.9% unemployment rate with a median income of $98,461 (32% above average). GDP per capita runs $68,357. Population growth of 0.7% suggests people see opportunity here.
Maryland ranks #17 overall with a composite of 67.7/100 and a B+ grade. Beyond the economy, the state scores 85.7 in health and 83.6 in economy. Broadband coverage at 97.2% supports the growing remote and hybrid workforce.
#4: Virginia
Virginia scores 72.2/100 economically, combining a 2.9% unemployment rate with a median income of $87,106 (17% above average). GDP per capita runs $66,440. Population growth of 0.8% suggests people see opportunity here.
Virginia ranks #9 overall with a composite of 74.9/100 and a A grade. Beyond the economy, the state scores 81.6 in education and 78.5 in safety. Broadband coverage at 90.5% supports the growing remote and hybrid workforce.
#5: South Dakota
At #5, South Dakota scores 70.3/100. Unemployment: 2%. Median income: $72,280. GDP per capita: $64,792. The cost of living index of 88 gives these wages real purchasing power.
South Dakota ranks #2 overall with a composite of 81.8/100 and a A+ grade. Beyond the economy, the state scores 89.8 in education and 84.5 in affordability. Broadband coverage at 93.2% supports the growing remote and hybrid workforce.
#6: Utah
At #6, Utah scores 68.7/100. Unemployment: 3.2%. Median income: $87,804. GDP per capita: $62,444. The cost of living index of 95 gives these wages real purchasing power.
Utah ranks #4 overall with a composite of 79.3/100 and a A+ grade. Beyond the economy, the state scores 93.9 in education and 91.8 in health. Broadband coverage at 95.4% supports the growing remote and hybrid workforce.
#7: North Dakota
At #7, North Dakota scores 67.7/100. Unemployment: 2.2%. Median income: $72,583. GDP per capita: $73,814. The cost of living index of 89 gives these wages real purchasing power.
North Dakota ranks #7 overall with a composite of 76.6/100 and a A grade. Beyond the economy, the state scores 84.7 in affordability and 81.6 in education. Broadband coverage at 98% supports the growing remote and hybrid workforce.
#8: Minnesota
At #8, Minnesota scores 63.6/100. Unemployment: 3.4%. Median income: $85,551. GDP per capita: $71,279. The cost of living index of 98 gives these wages real purchasing power.
Minnesota ranks #6 overall with a composite of 76.7/100 and a A grade. Beyond the economy, the state scores 89.8 in health and 87.8 in education. Broadband coverage at 93.2% supports the growing remote and hybrid workforce.
#9: Colorado
At #9, Colorado scores 63.6/100. Unemployment: 3.8%. Median income: $91,340. GDP per capita: $75,024. The cost of living index of 101 eats into the income advantage somewhat.
Colorado ranks #18 overall with a composite of 66.2/100 and a B+ grade. Beyond the economy, the state scores 73.5 in education and 67.3 in health. Broadband coverage at 94.4% supports the growing remote and hybrid workforce.
#10: Vermont
At #10, Vermont scores 62.9/100. Unemployment: 2.7%. Median income: $74,919. GDP per capita: $56,157. The cost of living index of 97 gives these wages real purchasing power.
Vermont ranks #3 overall with a composite of 79.6/100 and a A+ grade. Beyond the economy, the state scores 95.9 in health and 83.3 in safety. Broadband access sits at 83.7%, which matters as more jobs go remote.
Income vs. cost of living: the real picture
A $80,000 salary in a state with a COL index of 85 buys more than $100,000 in a state with a COL index of 120. This is why some states with moderate incomes rank well economically — their residents have more purchasing power.
South Dakota has the lowest unemployment at 2%, while Massachusetts has the highest median income at $101,370. These aren't always the same state because the job market and income scales depend on industry mix, cost structure, and economic diversification.
Among the top 10 economy states, 5 have a cost of living below the national average. That combination — good jobs plus affordable living — is what actually builds household wealth.
Weakest state economies
West Virginia (13.9), Nevada (18.4), Louisiana (20.6), Kentucky (22.7), Arkansas (22.9) score lowest for economic performance. High unemployment, lower median incomes, and limited industry diversity are common threads.
West Virginia scores 13.9/100 with 4.7% unemployment and a median income of $54,515. That's 27% below the national average income. But even here, the cost of living index of 90 partially offsets the lower wages.
Frequently Asked Questions
Q:Which state has the best economy?
Hawaii ranks #1 for economy in 2026 with a score of 90.0/100, combining a 2.2% unemployment rate with a median household income of $94,814. New Hampshire (84.5) and Maryland (83.6) follow closely. The economy score uses BLS unemployment data (2025) and Census Bureau median income (ACS 2024), both normalized to a 0-100 scale. States that combine low unemployment with high incomes earn the top positions because a strong economy means residents can find jobs that pay enough to live on. Economy carries a 15% weight in the overall composite — the largest single factor.
Q:Which state has the lowest unemployment?
South Dakota has the lowest unemployment rate at 2%, well below the national average of 3.8%. Low unemployment signals a healthy job market where workers can find employment relatively easily. However, the lowest unemployment state isn't always the #1 economy state because our economy score also weights median household income. A state with very low unemployment but below-average incomes won't rank as highly as one with both low unemployment and high earnings. The states with the lowest unemployment tend to have diversified economies, strong education systems, and business-friendly climates that attract employers.
Q:Which state has the highest median income?
Massachusetts has the highest median household income at $101,370, compared to the national average of $74,753. However, high income doesn't automatically translate to wealth — Massachusetts's cost of living index is 108, which means residents face above-average costs that eat into the income advantage. The states with the highest incomes tend to be concentrated in the Northeast and West, where finance, technology, healthcare, and professional services drive up wages. Comparing income alongside cost of living gives a clearer picture of actual purchasing power.
Q:Does a strong economy mean a high quality of life?
Not necessarily. Some states with strong economies have extremely high costs of living that offset the higher incomes — a $120,000 salary in a state with a COL index of 130 buys less than a $90,000 salary in a state with a COL index of 85. Our composite rankings account for this by including affordability (10%), safety (12%), health (12%), and education (12%) alongside economy (15%). The best situation is a strong economy paired with moderate costs, good schools, low crime, and healthy residents. Among the top 10 economy states, 10 also score above 60 in the overall composite, showing that economic strength often but not always correlates with broader quality of life.
Q:What economic metrics matter most when choosing a state?
The most important metrics depend on your situation. For job seekers, unemployment rate indicates how easy it is to find work. For earners, median household income shows what the typical household makes. For value seekers, the cost-adjusted income (income divided by cost of living) reveals purchasing power. For entrepreneurs, GDP growth and business formation rates signal dynamism. Our economy score combines unemployment and income as the two most universally relevant metrics. We also track GDP per capita, cost of living index, and industry diversity in state profiles. For a complete picture, compare economy scores with affordability and growth scores — a state with a great economy today but negative population growth may face challenges ahead.