North Dakota Leads States in 2026 Financial Ranking

The 2026 Financial State of the States report highlights a fiscal divide across the country following the 2025 fiscal year.

Updated on Oct. 15, 2026 in Financial Planning

North Dakota Leads States in 2026 Financial Ranking

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North Dakota ranks first in the 2026 Financial State of the States report, ending the 2025 fiscal year with a $21 billion surplus. The findings reflect a wide disparity between states, as 24 states faced insufficient assets to cover financial obligations.

Why it matters

The report underscores the precarious nature of state-level funding, as many jurisdictions struggle to manage billions in long-term pension and retiree health care liabilities. Understanding these fiscal gaps is essential for evaluating the long-term economic sustainability of state governments.

North Dakota secured the top position with a $72,300 taxpayer surplus, while New Jersey ranked lowest with a $162.3 billion shortfall and a $45,800 burden per taxpayer. Across the nation, states collectively reported $1.265 trillion in unfunded pension and retiree health obligations.

The players

North Dakota

This state holds the top ranking in the report due to a substantial financial surplus.

New Jersey

This state recorded the lowest financial ranking with a significant taxpayer burden.

The details

North Dakota leveraged its Legacy Fund and investment returns to counter declining energy tax revenues from oil, gas, and coal. Conversely, the national fiscal landscape remains challenged by hundreds of billions in unfunded liabilities, though improved investment performance recently helped stabilize some pension assets.

Fiscal year 2025 served as the primary reporting period for state financial conditions.

Market Dynamics

This financial analysis follows the reporting standards established by the Governmental Accounting Standards Board to measure long-term obligations. These metrics provide a standardized framework for evaluating how states manage structural deficits against historical economic cycles.

States with significant taxpayer burdens may face future pressure to increase tax rates or reduce public services to cover unfunded liabilities. Residents in these jurisdictions should monitor state fiscal health as it directly influences long-term tax liability and government service availability.

The takeaway

States that prioritize robust investment funds are better positioned to weather periods of declining tax revenue. Residents should review their state's annual comprehensive financial report to understand how local fiscal management may impact future tax obligations.