Of the 50 U.S.states, 24 don't have enough money to cover their bills.
Meanwhile, one under-the-radar red state stands apart from the rest, according to a new analysis of state finances.North Dakota ranked No.1 in Truth in Accounting's 2026 Financial State of the States report, ending fiscal year 2025 with $21 billion more than it needed to pay the state's bills.
That financial cushion gave North Dakota the highest "Taxpayer Surplus" in the country at $72,300.The taxpayer surplus figure does not mean that the state's residents receive that amount of money back in their pockets at the end of the year — rather it represents each taxpayer's share of the state's surplus under the group's methodology.The divide between the states with surplus versus those with burden matters especially when the economy weakens.States with stronger balance sheets have more room to weather downturns, maintain public services and meet retirement obligations, while states carrying large unfunded debts can face tougher choices over taxes, spending and borrowing when revenues fall.THINK YOUR STATE IS EXPENSIVE? NEW DATA REVEALS WHERE AMERICANS FACE THE HIGHEST COST-OF-LIVINGNorth Dakota's oil boom transformed the state's economy and now generates billions of dollars in tax revenue each year.
(Jim West/UCG/Universal Images Group via Getty Images)North Dakota's financial position was bolstered by its Legacy Fund, a state investment fund built with oil tax revenue.Although oil, gas and coal tax revenues declined amid lower energy prices, strong investment earnings and federal grant revenue helped offset the drop, according to the report.North Dakota was followed in the rankings by Alaska, Wyoming, Utah and Tennessee.The five states all had taxpayer surpluses ranging from $11,400 in Tennessee to topping out in North Dakota with $72,300.
Those handful of state's financial position stands in sharp contrast to nearly half the country.The report found that 24 states did not have enough available...