North Dakota ranked first among the states in Truth in Accounting’s 2026 Financial State of the States report, which evaluated finances at the end of fiscal year 2025. The analysis estimated the state had $21 billion more than necessary to pay its bills and assigned it a “Taxpayer Surplus” of $72,300, the highest in the country.
That figure is not a payment residents should expect to receive. Under Truth in Accounting’s methodology, it represents the portion of the state’s surplus attributed to each taxpayer. The report’s measure is intended to describe the relationship between state assets and obligations, rather than money available for individual refunds.
North Dakota’s position was supported in part by its Legacy Fund, an investment fund financed with oil tax revenue. The report said lower energy prices reduced tax revenue from oil, gas and coal, while investment earnings and federal grant revenue helped offset the decline.
Alaska, Wyoming, Utah and Tennessee followed North Dakota in the rankings. The five leading states each had a taxpayer surplus, ranging from $11,400 in Tennessee to $72,300 in North Dakota. In contrast, the report said 24 states lacked enough available assets to cover their financial obligations.
New Jersey ranked last, with a reported $162.3 billion shortfall. Truth in Accounting calculated that as a taxpayer burden of $45,800 per taxpayer, the highest amount among the states. Connecticut placed 49th, followed by Illinois, Massachusetts and California. The bottom five states’ reported taxpayer burdens ranged from $16,000 in California to $45,800 in New Jersey.
Retirement commitments were a significant component of the state-level obligations described in the report. For fiscal 2025, it identified $775 billion in unfunded pension liabilities across the states, along with $490 billion in unfunded obligations for retiree health care.
The report also said most states’ financial positions improved during 2025. Investment gains increased pension assets and helped reduce unfunded pension liabilities. Truth in Accounting cautioned, however, that investment-driven improvements can be reversed if markets decline.
The comparison highlights differences in reported fiscal cushions and obligations, but the “Taxpayer Surplus” and “Taxpayer Burden” labels are measures calculated by Truth in Accounting. They should not be read as direct estimates of cash owed to or receivable by individual residents. The report’s figures also reflect the end of fiscal 2025 and do not, by themselves, establish how states’ finances have changed since then.
