Best & Worst State Economies (2026)

U.S. economic growth depends heavily on the performance of individual states, and some contribute more than others. For example, California, Texas, New York and Florida have economies so large that if they were countries, they would rank in the top 20 in the world.

In order to determine which states are pulling the most weight in moving the U.S. economy forward, WalletHub compared the 50 states and the District of Columbia across 28 key indicators of economic performance and strength. Our data set ranges from GDP growth and the unemployment rate to startup activity and the share of jobs in high-tech industries

Main Findings

State Economy Rankings

Note: With the exception of “Total Score,” all of the columns in the table above depict the relative rank of that state, where a rank of 1 represents the best conditions for that metric category.

In-Depth Look at the Best State Economies

Massachusetts

Massachusetts has the best state economy, and it invests a lot more in both industry and academic R&D than most other states, which leads to big payoffs in economic growth. This has led to the state having the second-most invention patents per capita.

The Bay State has a lot of workers in industries that propel the economy forward, too. It has the highest share of jobs in high-tech industries and the third-highest share of STEM professionals.

In addition, Massachusetts has the highest percentage of firms that are listed on the Technology Fast 500 list.

Washington

Washington has the second-best state economy in the country, and it has the second-highest amount of industry R&D investment per capita, which allows it to be at the forefront of new tech. In fact, Washington has the second-highest share of jobs in high-tech industries and the second-highest share of STEM (Science, Technology, Engineering & Math) professionals.

In addition, Washington has the eighth-highest percentage of firms that are listed on the Technology Fast 500 list, and the third-highest number of invention patents per capita. This business growth and new technology will expand the economy even more in the future.

To top things off, new immigrants to the Evergreen State are the 12th-most educated in the country, and the state has the fifth-highest median household income after adjusting for the cost of living.

Utah

Utah has the third-best state economy, and at over $91,600, the median annual household income in the state is the highest in the country after adjusting for the cost of living. The state also has the seventh-highest share of STEM professionals, reflecting a highly skilled workforce.

The labor market in Utah is also very healthy. The state ranks third in business startup activity and sixth in the share of fast-growing firms, which contributes to job creation and a robust labor market.

Finally, the Beehive State shows great potential for the future of business, with the fourth-highest growth rate in the number of businesses and the sixth-highest share of jobs in high-tech industries.

The methodology can be found on the full version of the article on WalletHub.