Economy

Which States Have the Most Self-Sustaining Economies in the Country?

Salt Lake City, Utah, USA downtown cityscape over Temple Square with autumn foliage.
Sean Pavone / Shutterstock.com

As the country with the world’s most powerful economy, America is undoubtedly the engine that keeps the rest of the world moving. The dollar is the unofficial global currency, and all 50 states contribute to the US economy in various ways, some more than others. 

Key Points

  • While the US might seem to have 50 cohesive states working as one, some states would be fine on their own.

  • Far too many people might think it’s California or Texas that would most likely be self-sustaining.

  • It turns out the list of the most likely self-sustaining states are not at all what you might expect.

  • Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; get started by clicking here here.(Sponsor)

However, it often comes up as to which states would be the most self-sufficient without the rest of the country contributing. While you might think it’s California or Texas based on size, the states that would succeed independently will likely surprise you. 

10. Massachusetts

Boston Harbor Seascape with Tea Party Ships and Landmark Museum Buildings in in Massachusetts, USA: A tranquil New England evening cityscape at the waterfront
NayaDadara / Shutterstock.com

Looking at Massachusetts, you have the beginning of the country itself, and there is no question that Boston residents would scream from rooftops that they are more than willing to go at it alone. The state’s 5% flat income tax would help revenue continue coming in, as would a 3% low unemployment rate, and with some of the best colleges in the world, there is no question that a brain drain is incredibly unlikely. 

Big Surplus

Boston, Massachusetts | Boston, Massachusetts, USA
Sean Pavone / iStock via Getty Images

In 2024, Massachusetts saw a $5 billion budget surplus, which could be used to offset any potential lost revenue if the state tried to make it on its own. You also have the benefit that 60% of university grads stay local, and the state has 46% of adults with degrees, which is the highest in the country.  Factor in 2.4% GDP growth as part of both biotech and education exports and there is plenty of reason to believe Massachusetts would be just fine independently. 

9. Washington

Washington state image | Space Needle and Seattle downtown
aiisha5 / iStock via Getty Images

A tech hub, Washington state is home to many of America’s biggest and most prominent businesses, including Amazon, Starbucks, Microsoft, and Boeing’s main plant. Washington is also diversified in its revenue drivers, with agriculture around apples and wheat accounting for revenue. Last but not least, fishing and trade also play a big role, all things that would help Washington remain self-sufficient. 

Major Hydropower

Bellingham, WA people | Sporty woman relaxing in alpine meadows and enjoying scenic view of volcano covered with glaciers and snow.
Marina_Poushkina / iStock via Getty Images

Washington has an advantage over other states in that almost 70% of the state’s power supply comes from hydropower, and since the state has plenty of water access, this would help it be self-sustaining. As long as the state could maintain its $30 billion in annual exports to Asian countries yearly, revenue would keep pouring into the state. However, wealth inequality in a state with just 3% unemployment is a major priority as tech wealth is far above that of more rural residents. 

8. Virginia

Virginia Beach, Virginia | Aerial View of The Virginia Beach Oceanfront as the Sun Sets during Labor Day Weekend
Kyle Little / iStock via Getty Images

When you think of Virginia, you should likely be thinking about how the state is very heavy into multiple industries, thanks to its proximity to the Atlantic Ocean and Washington, D.C. This poses a challenge for the state to be self-sustaining but might also give it an advantage. Approximately 15% of the state’s GDP is derived from Pentagon, NASA, and military base work, which could go either way if the state were looking to be self-sustaining, so there is a scenario the state would need to make up lost revenue. 

Local Resources

Newport News, Virginia, August 25, 2013 - The aircraft carrier USS Theodore Roosevelt (CVN-71) pulls out of Newport News Shipyard.
Stocktrek Images / Stocktrek Images via Getty Images

Looking at the state’s $550 billion GDP, it breaks down to 20% technology, which comes from the Northern Virginia tech area, but 15% is made up from Defense, which could be a number that poses an issue to the states workforce, of which 66% are participating in work that takes place in-state. Still, the state’s GDP growth of 2.5% and an unemployment rate of 2.9% give hope to the idea that Virginia would be just fine on its own, even without federal budget support. 

7. Minnesota

Lakeville, Minnesota | Aerial view of the Twin Cities Suburb of Lakeville with illuminated lights at night in Minnesota
Wirestock / iStock via Getty Images

One of the states that shouldn’t come as any surprise for being self-sustaining is Minnesota. One of the nation’s premier healthcare destinations and a business-friendly atmosphere for brands like Target, Best Buy, and 3M, there are many reasons to believe Minnesota could make it on its own. This is doubly true when the state saw a $3 billion surplus of tax funds in 2024 while maintaining 2.4% GDP growth, much of which derives from healthcare and agriculture. 

Future Medical Capital

Minnesota | Minneapolis, Minnesota
Minneapolis, Minnesota by Dougtone / BY-SA 2.0 (https://creativecommons.org/licenses/by-sa/2.0/)

With around 1,000 medical patents filed annually and wind power growing, Minnesota’s future looks promising as a self-sustaining state and a part of a bigger union. The state’s proximity to Canada also helps it with around $5 billion in exports every year, which if continued would help boost the state’s economy in a major way if it were “going it alone.” Still, there is a big divide between the state’s urban and rural residents, the latter of whom have a much lower income that would need to be addressed. 

6. South Dakota

A close up of Theodore Roosevelt, one of four presidential profiles atop Mount Rushmore in South Dakota's Black Hills
Keith J Finks / Shutterstock.com

With over 83,000 miles of roads in South Dakota, there is plenty of infrastructure to support, which is important to help move around the state’s agricultural industry. Corn and soybeans drive much of the revenue in this regard, while areas like Mount Rushmore provide a tourism revenue boost of approximately 14 million visitors per year. Best of all, the state’s lack of an income tax has been drawing new residents, which means a potential influx of well-educated workers arriving annually. 

Low Unemployment

South Dakota state image | Deadwood, South Dakota
peeterv / iStock via Getty Images

The biggest argument favoring South Dakota’s self-sustaining future is that it offers the lowest unemployment rate in the US at 2.5%. This low unemployment is helping to drive a growing GDP that is hovering around 2.5% per year with agriculture exports and tourism playing a big role. Wind energy is a big initiative in the state as well, and it will play a major role in reducing overall energy costs for the state, which only further emphasizes its self-sustaining future. 

5. Vermont

Burlington, Vermont | Aerial View from Lakeshore Looking Along Streets in Burlington, Vermont
halbergman / E+ via Getty Images

In some strange way, Vermont is surprisingly and unsurprisingly on this list. As a smaller US state, it might get overlooked as being too small to be self-sustaining, but the reality is that it very well can be. There is no question the state’s biggest hope lies with its agriculture and tourism industry, of which maple syrup is a significant revenue and tourism driver. Plus, you have skiing and fall foliage that attracts tourists during winter. 

Aging Demographics 

Vermont Creamery butter
Courtesy of Mike Edmisten via 24/7 Wall St.

The biggest challenge for Vermont to become self-sustaining is that the state’s aging population and lack of major industry centers are causing younger adults to leave. On the plus side, there is still a skilled labor pool, and unemployment is modest at 2.7%, one of the lowest numbers in the country. GDP growth of around 2% annually relies heavily on tourism and agriculture, so as long as Vermont can find a way to maintain these two industries, even with a potential younger brain drain, it just might stand on its own. 

4. Wisconsin

Aerial view of Hoan Memorial Bridge, highway in Milwaukee, Wisconsin, USA. Highway, traffic in morning at sunrise, Downtown in the background. Cityscape, Skyline
Lena Platonova / Shutterstock.com

A state heavy on agriculture, Wisconsin is another surprisingly well placed member of the US that could likely self-sustain indefinitely. While Wisconsin isn’t going to be dependent on something like tourism, it is heavily focused on dairy, corn, soybeans, and even cranberries. The state’s high agricultural output makes it ideal for dairy products, including cheese, which is often its most famous export to the rest of the country. 

Wisconsin Strong

Wisconsin | Aerial view of Madison city downtown at sunset, Wisconsin
marchello74 / iStock via Getty Images

With an unemployment rate of only 3%, the state shows plenty of promise regarding jobs, an area where both farming and manufacturing come in handy. GDP growth hovers around 2%, much of which comes from the states’ dairy industry, so as the top producing cheese state in the country, would impact the state’s revenue if it could no longer export its goods to the rest of the country. The same can be said for an aging population as more than 20% of Wisconsin’s rural counties have lost population since 2010. 

3. Florida

Daytona Beach Shores, Florida | Aerial View of Beach Front in Daytona Beach, Florida
halbergman / E+ via Getty Images

You might be shocked to hear that Florida is independent, considering all the jokes made at the state’s expense. However, considering that in 2024, Florida had 142 million visitors, the tourism industry in Florida brings in billions of dollars in revenue. Between Disney, cruises, Miami, and other areas of attraction, the Florida ecosystem is alive and well and could help make the state self-sustaining. Perhaps most importantly, the state has the sixth-lowest number of mortgages underwater nationally. 

More Than Tourism

Mickey Mouse at Walt Disney World
raymundopelayo / Flickr

The biggest challenge to Florida would be climate, as hurricanes can disrupt the state to the tune of billions per year, if not tens of billions. This is why federal funding and support often contribute to the cleanup process. However, Florida could find new revenue opportunities by adding a state income tax that would bring in billions of dollars. While it might be an unpopular decision, it could make the difference between Florida being self-sustaining and not if another storm hits. 

2. Colorado 

Greeley, CO | Aerial shot of Greeley in Colorado in autumn
Wirestock / iStock via Getty Images

As a state that doesn’t rely heavily on exports to foreign countries, the Colorado economy isn’t dependent on jobs due to exports. Add in the notion that exports to other countries only make up a very small portion of Colorado’s GDP, and it’s clear why the state of Colorado would do very well independently. You also have a well-educated workforce, with 42% of adults with degrees from strong schools like the University of Colorado and Colorado State. 

Green Energy Leader

Illinois+renewable+energy | Wind Farm
shock399 / Flickr

Among the biggest reasons Colorado would do okay on its own is that its wind capacity is up 15% from 2022, making it the green energy leader in the US. You also have a very strong tech hub in Denver, where thousands of workers relocate annually. While the cost of living in Colorado is increasing because of the number of people moving into the state, especially around houses, the state will need to address infrastructure concerns. Still, it has the economy to support additional work. 

1. Utah

Salt Lake City, UT | Salt Lake City, Utah
DenisTangneyJr / E+ via Getty Images

When you think about Utah, you probably don’t consider it the most independent state in the nation, but this is exactly how it ranks according to WalletHub. At the very top, very few Utah residents receive public assistance, and the state doesn’t rely heavily on federal funding. The state’s unemployment rate is also among the nation’s lowest and has also seen around 3-5% GDP growth annually. 

#1 Economic Outlook

Roy, Utah | Aerial view of an urban area, captured from a high-altitude perspective in Roy, Utah
Wirestock / iStock via Getty Images

According to the American Legislative Executive Council, Utah has ranked at the top of its economic strength charts for 13 years. The “Silicon Slopes” part of the state is attracting tech jobs as companies look to relocate to Utah for the great cost of living, strong infrastructure, and plenty of things to do on the weekend with five national parks. As long as Utah focuses on sound fiscal management, it would do well independently of the rest of the country.

 

Get Ready To Retire (Sponsored)

Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.

Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.

Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.

AI Portfolio

Discover Our Top AI Stocks

Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.

You can follow him investing $500,000 of his own money on our top AI stocks for free.