WalletHub study examines the financial independence of US states

By Christine Johnson
The Center Square

Idaho is the nation’s most financially independent state, while Kentucky ranks as the least financially independent, according to a new WalletHub study.

Ahead of the Independence Day holiday, WalletHub compared all 50 states across a range of metrics related to financial independence, ranking states from the least financially independent to the most financially independent. The analysis examined factors related to financial, government, job-market, international-trade and dependency.

WalletHub concluded that the top five most independent states are Idaho, Utah, Hawaii, Colorado and South Dakota.

Adam McCann, a financial writer for WalletHub, noted that one of the main reasons Idaho ranks at the top is that its economy does not rely on exports to foreign countries and has it has strong financial stability, demonstrated through residents’ ability to responsibly save money to invest in future generations.

Utah ranked as the second top financially independent state for similar reasons, as the state rarely relies on government benefits. Utah residents also do not rely on unemployment income, having only a 3.8% unemployment rate, the 11th lowest in the country.

Hawaii ranks third mainly because of its independence from well-known addictive substances.

“Hawaii has the sixth-lowest share of adults using drugs, as well as lowest number of opioid prescriptions dispensed and low rates of smoking,” said McCann.

The bottom five included South Carolina, Alaska, Mississippi, Louisiana, and Kentucky.

WalletHub analyst Chip Lupo reflected on the rankings considering the nation’s 250th anniversary.

“As we celebrate America’s Independence Day, it’s also worth taking time to recognize the individual states that have the most independent qualities as well,” Lupo said. “Idaho is the most independent in 2026, according to our analysis, and residents display their independence in a variety of ways, from not being heavily reliant on revenue generated through exports to other countries to not being addicted to smoking, gambling or drugs.”