This sparsely populated red state quietly climbed to the top of America’s financial rankings
North Dakota ranked first in Truth in Accounting’s 2026 state finances report, ending fiscal year 2025 with $21 billion more than it needed to cover its bills. Its surplus matters because financially stronger states have more room to maintain services and meet obligations when the economy weakens.
The report’s “Taxpayer Surplus” for North Dakota was $72,300 per taxpayer under the group’s method; it is not a cash payment to residents. Oil tax revenue fell, but investment earnings from the Legacy Fund and federal grants helped offset the decline. Alaska, Wyoming, Utah and Tennessee also had surpluses, while 24 states lacked enough available assets to meet their obligations. New Jersey ranked last with a $162.3 billion shortfall, and states collectively had $775 billion in unfunded pension liabilities and $490 billion in unfunded retiree health care obligations.
- North Dakota topped the state finance rankings.
- Its reported surplus was $21 billion.
- New Jersey had the largest shortfall.
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North Dakota is a lightly populated state in the northern Great Plains, where oil production has become an important source of public revenue. Like other US states, it collects taxes and receives federal grants, then uses that money to fund services and meet long-term commitments such as pensions and health care for retired public workers.
The Legacy Fund is a state investment fund built from a share of North Dakota’s oil and gas tax revenue. Its investment earnings can help support the state’s finances, though oil income and investment returns can vary over time. States differ in how much they owe and what assets they can use to pay those obligations, including retirement benefits promised to public workers.
Truth in Accounting is a non-profit group that assesses state finances using its own accounting method. Its “Taxpayer Surplus” figure estimates the gap between a state’s available assets and obligations per taxpayer; it does not mean residents receive that amount.