MINNESOTA — Minnesota ranked ahead of Wisconsin, Iowa, and both Dakotas in a new report on the best state economies in the country.
WalletHub released its 2026 ranking Monday, comparing all 50 states and Washington, D.C., across 28 indicators of economic performance and strength.
Minnesota ranked No. 21 overall, with a total score of 48.14.
The state ranked:
No. 21 overall
No. 28 for economic activity
No. 12 for economic health
No. 20 for innovation potential
Minnesota's strongest showing came in the economic health category, where it ranked No. 12 nationally.
WalletHub's economic health category included unemployment, underemployment, payroll growth, labor force growth, full-time job growth, household income adjusted for cost of living, personal income growth, poverty, foreclosure rates, fiscal health, building-permit activity and other measures.
Minnesota also ranked No. 20 for innovation potential, a category that included high-tech jobs, STEM employment, patents, research and development investment and entrepreneurial activity.
The state's weakest category was economic activity, where it ranked No. 28. That category included GDP growth, fast-growing firms, public debt as a share of GDP, exports per capita and startup activity.
Still, Minnesota finished ahead of every neighboring state included in the ranking.
Wisconsin ranked No. 31 overall. Iowa ranked No. 39, North Dakota ranked No. 40 and South Dakota ranked No. 41.
Minnesota also ranked ahead of Illinois, which came in at No. 37.
Massachusetts ranked No. 1 overall, followed by Washington, Utah, California and Delaware.
West Virginia ranked last, followed by Kentucky, Louisiana, Maine and Rhode Island.
WalletHub said the best state economies tend to combine strong job markets, business growth and investment in technology.
"A strong state economy doesn’t guarantee success for the state’s residents, but it certainly makes financial success more attainable," WalletHub analyst Chip Lupo said in the report.
Lupo said factors such as low unemployment and high average income can help residents buy property, pay down debt and save for the future. He said the best state economies also encourage growth by being friendly to new businesses and investing in new technology.
WalletHub said its ranking was based on data collected as of May 4 from sources including the U.S. Census Bureau, Bureau of Labor Statistics, Bureau of Economic Analysis, Deloitte, the National Science Foundation and the Kauffman Foundation.
Check out the full study here.
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