Best State for Saving Money in 2026

Where you live can have a huge impact on how easy it is to build savings.

From tax rates and household debt to cost of living, income and employment levels, some states make it far easier for residents to put money aside than others. While high salaries can help, they do not always outweigh steep living costs, heavier tax burdens or weaker economic conditions.

 To find the best and worst states to save money in 2026, we analyzed all 50 U.S. states across five financial factors: household debt, local effective tax rate, cost of living, median household income, and employment. After normalizing the data across all five metrics, we calculated an overall score out of 10 to rank each state from easiest to hardest for saving money. 

Contents

1. Top 10 Easiest States to Save Money
2. The Hardest States to Save Money in 2026
3. Overall Rankings
4. Methodology

1. Top 10 Easiest States to Save Money

One of the more interesting findings in the study is that some states with relatively high costs still placed near the top.

For example, New Hampshire ranked fourth despite a cost of living score of 4.4, one of the higher figures among the top 10. However, it was lifted by a low tax rate of 5.94%, high median household income of $99,782, and strong employment.

Similarly, Connecticut and New Jersey both made the top 10. That suggests higher incomes and comparatively lower household debt can sometimes outweigh tax and living-cost disadvantages.

North Dakota came out on top

North Dakota ranked as the best state to save money in 2026 thanks to its strong all-round performance across the study’s five measures.

The state posted one of the lowest household debt figures in the ranking at 1.042, paired with a low local effective tax rate of 6.61%. Its cost of living score of 1.1 also points to a relatively affordable environment compared with many other parts of the country.

On top of that, North Dakota recorded median household income of $77,871 and an employment figure of 65.8, helping push it to the highest overall score in the study. While it may not always be the first state people think of for financial opportunity, its balance of affordability, manageable debt and solid labor market performance helped it stand out.

Utah and South Dakota

Utah placed second with a score of 7.01, helped by the highest employment figure among the top three states at 66.9 and one of the strongest median household incomes in the ranking at $96,658. While its household debt level was higher than several other top-ranked states (3rd highest), its strong income and job market helped offset that.

South Dakota ranked third with a score of 6.88. A 6.46% local effective tax rate, relatively low household debt and strong employment all helped it perform well. Like North Dakota, it benefited from a combination of lower cost pressures and stable economic fundamentals.

2. The Hardest States to Save Money in 2026

At the other end of the ranking, the most difficult states for saving money were those where residents face a tougher combination of high costs, weaker employment, or heavier debt loads.

Hawaii

Hawaii ranked last overall, tied on score with California at 3.62, but its fundamentals were especially challenging for savers. The state had the highest household debt figure in the study at 2.036 and the highest local effective tax rate at 13.92%. Although median household income reached $100,745, that was not enough to overcome the financial pressure created by high taxes and debt.

California

California also scored 3.62, making it one of the hardest places in the country to save money. The state combined a high cost of living score of 4.3 with an 11% local effective tax rate. Even though California posted a strong median household income of $100,149, the higher cost base appears to make saving significantly more difficult.

West Virginia, Maine and South Carolina

West Virginia ranked third from bottom with a score of 3.68, hurt by the lowest employment figure in the ranking at 52.2 and relatively modest household income of $60,798.

Maine followed with a score of 3.97, weighed down by a high cost of living score of 4.3 and a 10.64% local effective tax rate.

South Carolina rounded out the bottom five at 4.02, with above-average debt and weaker employment metrics contributing to its lower ranking.

3. Overall Rankings

What the Rankings Show

Our findings suggest that saving money is not simply about earning more. In many cases, the states that performed best were those with a healthier balance of:

• lower household debt

• lower effective taxes

• manageable living costs

• decent incomes

• stronger employment conditions

That also helps explain why some traditionally expensive or high-tax states still ranked surprisingly well: income and employment strength can offset some structural costs, even if they do not erase them entirely.

Meanwhile, states at the bottom often struggled because residents were squeezed from multiple directions at once. Even where taxes were not especially high, weaker incomes, softer employment conditions or higher debt loads made it harder to build savings.

4. Methodology

To determine the best and worst states to save money in 2026, we analyzed all 50 U.S. states across five factors:

• Household debt

• Local effective tax rate

• Cost of living

• Median household income

• Employment

We normalized the data across all five factors and calculated the average to produce an overall score out of 10 for each state. States with stronger overall financial conditions scored higher, while states with greater affordability pressures or weaker economic metrics scored lower.