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New study reveals which states have the best economies

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Published  June 1, 2026 11:56 AM EDT
Economy
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The Brief

    • A WalletHub analysis of all 50 states and Washington, D.C. found that Massachusetts had the strongest state economy in the U.S.
    • Massachusetts' top ranking was driven by heavy investment in research and development, a highly skilled STEM workforce, strong innovation output and a high concentration of fast-growing technology companies.
    • The top five state economies were Massachusetts, Washington, Utah, California, and Delaware, with WalletHub noting that strong economies create better opportunities for income growth, business development and long-term financial success.

As the U.S. economy continues to navigate global competition and domestic challenges, the performance of individual states remains a critical driver of national growth. While economic powerhouses such as California, Texas, New York, and Florida boast economies so large they would rank among the world's top 20 nations if measured independently, new research highlights which states are doing the most to propel the country forward.

A recent analysis by WalletHub compared all 50 states and the District of Columbia across 28 indicators of economic performance and strength. The data examined factors including GDP growth, unemployment rates, startup activity, and the concentration of high-tech jobs to determine which states have the strongest economies.

Massachusetts ranked best state economy

Big picture view:

According to the rankings, Massachusetts emerged as the nation's top-performing state economy.

The Bay State's success was fueled by its significant investment in research and development, both in the private sector and within academic institutions. These investments have translated into strong economic returns, helping Massachusetts secure the second-highest number of invention patents per capita in the country.

The skyline of the Financial District looking across the Fort Point Channel on November 3, 2022 in Boston, Massachusetts. (Credit: Matt Stone/MediaNews Group/Boston Herald via Getty Images)

Massachusetts also stood out for its highly skilled workforce. The state had the highest share of jobs in high-tech industries and ranked third nationwide for the percentage of workers employed in science, technology, engineering and mathematics (STEM) fields.

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

Massachusetts was followed by Washington and Utah.

What they're saying:

"A strong state economy doesn’t guarantee success for the state’s residents, but it certainly makes financial success more attainable," Chip Lupo, a WalletHub analyst, said in a statement. "Factors like a low unemployment rate and high average income help residents purchase property, pay down debt and save for the future."

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He added, "The best state economies also encourage growth by being friendly to new businesses and investing in new technology that will help the state deal with future challenges and become more efficient."

State economy rankings

  1. Massachusetts
  2. Washington
  3. Utah
  4. California
  5. Delaware

See the full report here.

The Source: WalletHub compared the 50 states and the District of Columbia across three key dimensions: 1) Economic Activity, 2) Economic Health and 3) Innovation Potential. This story was reported from Los Angeles.

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