Massachusetts claimed the title of best state economy of 2026 in a recent study from WalletHub. The Commonwealth’s investments in higher education and strong STEM industries propelled it to victory.

WalletHub used data from the U.S. Census Bureau and other sources to rank U.S. states based on fiscal health, entrepreneurial activity and more. Massachusetts placed No. 1 followed by Washington and Utah.

The state ranked No. 1 for innovation and boasted the second-most invention patents per capita. Plus, residents enjoyed abundant job options. Massachusetts had the highest share of jobs in high-tech industries and the third-highest share of STEM professionals overall. Notably, the Commonwealth had the highest percentage of firms listed on the Technology Fast 500 list.

Researchers noted Massachusetts’ dedication to academic research and development — an investment in the workforce of the future.

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