Hawaii Tops WalletHub Happiness Ranking, but Living Costs Remain a Trade-Off
WalletHub’s annual happiness study ranks all 50 states across well-being, work climate and community; Hawaii leads, with Maryland and Nebraska close behind, while high living costs in top states underscore trade-offs.
Hawaii has been named the happiest state in WalletHub’s annual analysis, which evaluates states on 30 measures across three categories: emotional and physical well-being, work environment and community and environment. The study aims to identify where residents report higher quality of life and a sense of security.
Hawaii topped the list thanks to life satisfaction, an outdoor lifestyle and the nation’s longest life expectancy. The state also features one of the lowest unemployment rates and a high share of households with annual incomes above $75,000, factors WalletHub ties to lower financial worry and greater well-being. Maryland finished second, powered by strong job security and high household incomes, while Nebraska ranked third, with robust health metrics, solid finances and strong family ties.
Beyond the top three, the study highlights Maryland’s 3.2 percent unemployment rate and the state's comparatively high share of households earning above $75,000 per year; residents also report less work-related stress than most states, and many say they like their careers and feel motivated to achieve goals. Nebraska follows with a 2.9 percent unemployment rate, the fourth-lowest in the nation, and the second-highest level of economic security; Nebraskans report strong physical health, low depression rates and substantial leisure time, aided by abundant state parks and rivers.
Other states near the happier end of WalletHub’s ranking include New Jersey, Connecticut, Utah, California and New Hampshire, which contribute to the overall picture of where Americans may find sustainable happiness based on multiple life domains, not just income.
WalletHub Senior Analyst Chip Lupo described the study’s premise: 'In addition to pursuing your passions, having a good work-life balance and maintaining an emotional support network, another way to boost your happiness is living in the right place.' The ranking illustrates how environmental and community factors intersect with economic conditions to shape well-being.
Alicia M. Walker, Ph.D., of Missouri State University, explained how WalletHub weighs happiness. 'Decades of research back this up, that close, reliable relationships are what really make us happy,' she said. 'When you’re honest, set boundaries, choose authenticity, and build trust, you’re doing the very things that make those relationships thrive. But relationships aren’t the whole story. Purpose and growth matter, too.'
The study also notes that Hawaii’s weather and outdoor amenities contribute to health outcomes and life satisfaction, while living costs remain a countervailing factor for many residents.
Like many happiness studies, WalletHub emphasizes that state policy and local conditions—ranging from health care access to crime rates to outdoor recreation opportunities—play a significant role in daily well-being. The results suggest a spectrum where strong health and security can coexist with high costs of living, underscoring that happiness is influenced by a mosaic of factors, not a single measure.