U.S. economic growth depends heavily on the performance of individual states. But some contribute more than others. California, for instance, has outranked Japan as the world’s fourth-largest economy in 2024, with a GDP of roughly $4.17 trillion. On the other hand, Vermont’s gross domestic product is around $45.7 billion, nearly 91 times smaller than California’s economic output.
In order to determine which states are pulling the most weight even during this time of economic difficulty caused by inflation, 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 to startup activity to the share of jobs in high-tech industries.

Chip Lupo, WalletHub Analyst
Main Findings
State Economy Rankings
Overall Rank | State | Total Score | Economic Activity Rank | Economic Health Rank | Innovation Potential Rank |
---|---|---|---|---|---|
1 | Massachusetts | 70.84 | 6 | 17 | 1 |
2 | Utah | 69.18 | 1 | 9 | 10 |
3 | Washington | 68.97 | 3 | 16 | 2 |
4 | California | 67.43 | 2 | 47 | 3 |
5 | New Hampshire | 58.88 | 16 | 10 | 7 |
6 | North Carolina | 58.86 | 11 | 4 | 11 |
7 | Idaho | 58.14 | 14 | 1 | 17 |
8 | Texas | 57.51 | 4 | 11 | 24 |
9 | Maryland | 56.96 | 20 | 13 | 5 |
10 | Colorado | 55.72 | 21 | 23 | 4 |
11 | Delaware | 55.45 | 5 | 43 | 15 |
12 | District of Columbia | 55.14 | 8 | 40 | 14 |
13 | Georgia | 54.59 | 7 | 22 | 25 |
14 | Arizona | 53.93 | 13 | 15 | 18 |
15 | Virginia | 53.49 | 18 | 3 | 23 |
16 | New York | 53.42 | 9 | 32 | 21 |
17 | Florida | 53.01 | 10 | 7 | 28 |
18 | Vermont | 50.62 | 26 | 8 | 16 |
19 | Oregon | 50.55 | 31 | 36 | 6 |
20 | Connecticut | 50.22 | 29 | 38 | 8 |
21 | South Carolina | 48.20 | 15 | 14 | 37 |
22 | Indiana | 47.58 | 17 | 35 | 27 |
23 | Tennessee | 47.15 | 19 | 6 | 36 |
24 | New Jersey | 47.14 | 23 | 49 | 12 |
25 | Michigan | 46.99 | 36 | 42 | 9 |
26 | Alabama | 46.78 | 24 | 12 | 33 |
27 | New Mexico | 46.73 | 35 | 37 | 13 |
28 | Nevada | 45.68 | 12 | 34 | 43 |
29 | Wisconsin | 45.64 | 34 | 25 | 22 |
30 | Minnesota | 45.56 | 43 | 18 | 20 |
31 | Pennsylvania | 44.81 | 28 | 44 | 19 |
32 | Montana | 42.95 | 42 | 5 | 35 |
33 | Rhode Island | 42.85 | 33 | 26 | 31 |
34 | Kansas | 41.86 | 44 | 21 | 32 |
35 | Missouri | 41.57 | 37 | 29 | 34 |
36 | Ohio | 40.59 | 30 | 46 | 30 |
37 | Maine | 40.24 | 32 | 27 | 39 |
38 | Arkansas | 38.97 | 25 | 28 | 46 |
39 | Oklahoma | 38.58 | 40 | 30 | 42 |
40 | Illinois | 37.09 | 41 | 51 | 26 |
41 | Kentucky | 36.72 | 27 | 39 | 50 |
42 | Wyoming | 36.57 | 46 | 24 | 44 |
43 | Nebraska | 36.55 | 48 | 19 | 38 |
44 | Mississippi | 36.35 | 39 | 33 | 45 |
45 | Alaska | 36.09 | 45 | 41 | 40 |
46 | Louisiana | 35.04 | 22 | 50 | 48 |
47 | South Dakota | 34.18 | 49 | 2 | 47 |
48 | North Dakota | 33.28 | 50 | 20 | 41 |
49 | Hawaii | 33.09 | 47 | 31 | 49 |
50 | West Virginia | 32.34 | 38 | 45 | 51 |
51 | Iowa | 31.61 | 51 | 48 | 29 |
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.

- Highest Change
- 1. Utah
- 2. South Carolina
- 3. Idaho
- 4. Indiana
- 5. Arkansas

- Lowest Change
- 47. Wyoming
- 48. Nebraska
- 49. South Dakota
- 50. Iowa
- 51. North Dakota

- Most Exports
- T-1. Louisiana
- T-1. Texas
- T-1. Kentucky
- 4. Indiana
- 5. Alaska

- Fewest Exports
- 47. Maine
- 48. Montana
- 49. Oklahoma
- 50. Colorado
- 51. Hawaii

- Most Activity
- 1. Nevada
- 2. Florida
- 3. Utah
- 4. California
- 5. Idaho

- Least Activity
- 47. North Dakota
- 48. West Virginia
- 49. Wisconsin
- 50. Nebraska
- 51. Iowa

- Lowest Rate
- T-1. South Dakota
- T-1. North Dakota
- T-1. Vermont
- T-1. Montana
- T-1. Nebraska

- Highest Rate
- T-47. District of Columbia
- T-47. Kentucky
- T-47. Michigan
- 50. California
- 51. Nevada

- Highest Change
- 1. Alaska
- 2. South Carolina
- 3. Maryland
- 4. Nevada
- 5. Florida

- Lowest Change
- 47. District of Columbia
- 48. Illinois
- 49. Oregon
- 50. Iowa
- 51. Massachusetts

- Highest Income
- 1. Virginia
- 2. Utah
- 3. Minnesota
- 4. New Jersey
- 5. Colorado

- Lowest Income
- 47. Mississippi
- 48. New Mexico
- 49. Louisiana
- 50. Maine
- 51. West Virginia

- Highest Surplus per Capita
- 1. New Mexico
- 2. North Dakota
- 3. Hawaii
- 4. Wyoming
- 5. Nevada

- Lowest Surplus per Capita
- 46. New Hampshire
- 47. Maryland
- 48. West Virginia
- 49. Louisiana
- 50. Alaska

- Highest Average
- 1. District of Columbia
- 2. Vermont
- 3. Alaska
- 4. New Hampshire
- 5. Hawaii

- Lowest Average
- 47. Oklahoma
- 48. New Mexico
- 49. Louisiana
- 50. Delaware
- 51. Mississippi

- Highest Percentage
- 1. Massachusetts
- 2. Washington
- 3. New Mexico
- 4. California
- 5. New Hampshire

- Lowest Percentage
- 47. Louisiana
- 48. Oklahoma
- 49. West Virginia
- 50. Hawaii
- 51. Arkansas

- Most Patents
- T-1. California
- T-1. Massachusetts
- 3. Washington
- 4. Oregon
- 5. Idaho

- Fewest Patents
- 47. Alabama
- 48. Louisiana
- 49. West Virginia
- 50. Mississippi
- 51. Alaska
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.
Utah
Utah has the second-best state economy, and at over $88,500, the median annual household income in the state is the second-highest in the country after adjusting for the cost of living. The average income in the state also grew by 6.1% between 2023 and 2024.
The labor market in Utah is also very healthy. Utah has one of the lowest unemployment rates in the country, at 3.2%, along with the eighth-most growth in the civilian labor force between 2023 and 2024.
Finally, the Beehive State shows great potential for the future of business, with the third-highest growth rate in the number of businesses and the sixth-highest share of jobs in high-tech industries.
Washington
Washington has the third-best state economy in the country, and it has an extremely high 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 seventh-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 seventh-most educated in the country, and the state has the sixth-highest median household income after adjusting for the cost of living.
Ask the Experts
Not all economic growth strategies are effective. For the best ways to stimulate the economy and achieve lasting prosperity, we asked a panel of experts to share their thoughts on the following key questions:
- What are the most effective ways for state and local officials to help their local economies?
- What can states do to prevent “brain drain” and develop, attract and retain highly skilled workers?
- States often compete for business investment by offering tax breaks and other incentives. Do such efforts more often result in a net positive or net negative impact on state economies? Do such efforts create a “race to the bottom” across states?
- In evaluating the states with the best economies, what are the top five indicators?
- Where is the economy heading in 2025?
Ask the Experts
Ph.D., Executive Director; Bentley Service-Learning and Civic Engagement Center and the Bentley Social Innovation Incubator - Associate Professor, Department of Sociology - Bentley University
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Ph.D., Assistant Professor & Undergraduate Director, Department of Economics - Florida Atlantic University, College of Business
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Ph.D., Chair, Department of Economics, Richard W. and Janis H. Furst Endowed Chair of Economics, Gatton College of Business and Economics - University of Kentucky
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Director, International Political Economy Program; Professor of Political Science, Clausen Center - Carthage College
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Professor, Economics - American University
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Assistant Professor of Economics, Department of Economics – Lakehead University
Read More
Methodology
In order to determine the best state economies, WalletHub compared the 50 states and the District of Columbia across three key dimensions: 1) Economic Activity, 2) Economic Health and 3) Innovation Potential.
We evaluated those dimensions using 28 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the highest economic performance.
We then determined each state and the District’s weighted average across all metrics to calculate its overall score and used the resulting scores to rank-order our sample.
Economic Activity – Total Points: 33.33
- Change in GDP (2024 vs. 2023): Quadruple Weight (~13.33 Points)
- Share of Fast-Growing Firms: Triple Weight (~10.00 Points)
Note: This metric measures the number of firms in Deloitte’s Technology Fast 500 list as a percentage of total firms. - State Gross Public Debt as Percent of GDP: Full Weight (~3.33 Points)
- Exports per Capita: Full Weight (~3.33 Points)
- Startup Activity: Full Weight (~3.33 Points)
Note: This metric measures the rate of newly established firms.
Economic Health – Total Points: 33.33
- Unemployment Rate: Double Weight (~3.92 Points)
- Underemployment Rate: Half Weight (~0.98 Points)
- Change in Nonfarm Payrolls (2024 vs. 2023): Full Weight (~1.96 Points)
- Change in Total Civilian Labor Force (2024 vs. 2023): Full Weight (~1.96 Points)
- Increase in Ratio of Full-Time Jobs to Part-Time Jobs (2023 vs. 2022): Full Weight (~1.96 Points)
- Median Annual Household Income Adjusted for Cost of Living: Full Weight (~1.96 Points)
- Growth in State Personal Income (2024 vs. 2023): Full Weight (~1.96 Points)
- Government Surplus/Deficit per Capita: Full Weight (~1.96 Points)
- Unfunded Public Pension Plans per Capita: Full Weight (~1.96 Points)
- Share of Uninsured Population: Half Weight (~0.98 Points)
- Share of Population in Poverty: Full Weight (~1.96 Points)
- Foreclosure Rate: Double Weight (~3.92 Points)
- Growth in Number of Businesses (2022 vs. 2021): Full Weight (~1.96 Points)
- Fiscal Health: Full Weight (~1.96 Points)
Note: This metric is based on the George Mason University Mercatus Center’s state fiscal rankings, particularly the State Fiscal Condition Index, which refers to the sum of cash, budget, long-run, service-level and trust-fund solvency indices for each state. - Building-Permit Activity: Full Weight (~1.96 Points)
Note: This metric measures the total number of new privately owned residential-building permits issued annually per capita. - Average Educational Attainment of Recent Immigrants: Half Weight (~0.98 Points)
Note: The educational attainment of recent immigrants aged 25 and older from a foreign country is classified as having either no high school diploma; a high school diploma or equivalent; some college experience or an associate’s degree; a bachelor’s degree; or a graduate or professional degree. - Average Educational Attainment of Recent Migrants from Other U.S. States: Half Weight (~0.98 Points)
Note: The educational attainment of recent migrants aged 25 and older from other states within the U.S. is classified as having either no high school diploma; a high school diploma or equivalent; some college experience or an associate’s degree; a bachelor’s degree; or a graduate or professional degree.
Innovation Potential – Total Points: 33.33
- Share of Jobs in High-Tech Industries: Full Weight (~5.56 Points)
- Share of Jobs STEM Employment: Full Weight (~5.56 Points)
- Independent Inventor Patents per 1,000 Working-Age Population: Full Weight (~5.56 Points)
- Industry R&D Investment Amount per Total Civilian Employed Population: Full Weight (~5.56 Points)
Note: “R&D” refers to research and development. - Nonindustry R&D Investment Amount as Share of GDP: Full Weight (~5.56 Points)
Note: “R&D” refers to research and development. - Entrepreneurial Activity: Full Weight (~5.56 Points)
Note: This metric is based on the Kauffman Index of Startup Activity, which is an equally weighted index of four normalized measures of startup activity, as defined by the Kauffman Foundation: the Rate of New Entrepreneurs (percentage of adults becoming entrepreneurs in a given month); the Opportunity Share of New Entrepreneurs (percentage of new entrepreneurs driven primarily by “opportunity” vs. “necessity”); and the Startup Density of a Region (number of new employer businesses, normalized by the business population).
Sources: Data used to create this ranking were collected as of April 17, 2025 from the U.S. Census Bureau, Bureau of Labor Statistics, Bureau of Economic Analysis, Deloitte, United Health Foundation, American Legislative Exchange Council, Mercatus Center at George Mason University, Council for Community and Economic Research, ATTOM, a property data provider - U.S. Foreclosure Market Report, United States Patent and Trademark Office, usgovernmentspending.com, National Science Foundation, and Ewing Marion Kauffman Foundation.
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