California remains the largest state economy in America, producing $4.297 trillion in 2025, according to the BEA GDP by State tables updated September 30, 2026. Texas comes second at $2.932 trillion, followed by New York at $2.466 trillion.
Put those three states together and they account for about 31.4% of the entire US economy. Add Florida and Illinois, and the five largest economies produce more than 41% of the country’s economic output.
One of the closest contests in the ranking is much further down. North Carolina has moved ahead of Washington, but only by $3.7 billion. Against economies worth almost $900 billion each, that is a gap of just 0.4%.
More recent figures tell a different story about growth. New York led the country in real GDP growth during the second quarter of 2026, while West Virginia recorded the largest contraction. Florida had the fastest consumer spending growth in 2025, despite California remaining the much larger economy.
Income brings another surprise. Connecticut ranks 23rd by total GDP but leads the states in personal income per resident. Wyoming has one of the smallest economies, yet its average income per person is slightly higher than California’s.
For anyone comparing states, the numbers answer three different questions. GDP tells us how much an economy produces. Growth measures how quickly production is changing. Personal income gives us a closer look at the money residents receive.
US States Ranked by GDP in 2026 Using the Latest Annual Figures
BEA released its revised annual state GDP estimates on September 30, 2026. The figures below cover calendar year 2025, the latest complete year available for ranking every state.
The table includes per capita personal income alongside GDP. Income is a separate measure, taken from BEA’s regional personal income accounts, and should not be confused with GDP per resident or average salary.
| Rank | State or District | 2025 GDP | 2025 Per Capita Personal Income |
|---|---|---|---|
| 1 | California | $4.297 trillion | $90,957 |
| 2 | Texas | $2.932 trillion | $73,156 |
| 3 | New York | $2.466 trillion | $91,504 |
| 4 | Florida | $1.806 trillion | $78,345 |
| 5 | Illinois | $1.241 trillion | $78,987 |
| 6 | Pennsylvania | $1.056 trillion | $75,370 |
| 7 | Ohio | $976.872 billion | $67,584 |
| 8 | Georgia | $936.087 billion | $65,111 |
| 9 | North Carolina | $895.919 billion | $68,274 |
| 10 | Washington | $892.255 billion | $88,944 |
| 11 | New Jersey | $887.793 billion | $89,720 |
| 12 | Massachusetts | $813.591 billion | $98,700 |
| 13 | Virginia | $807.925 billion | $80,903 |
| 14 | Michigan | $733.887 billion | $67,245 |
| 15 | Arizona | $592.103 billion | $68,373 |
| 16 | Tennessee | $586.210 billion | $69,274 |
| 17 | Colorado | $574.864 billion | $86,342 |
| 18 | Maryland | $567.019 billion | $82,387 |
| 19 | Indiana | $542.458 billion | $66,455 |
| 20 | Minnesota | $515.116 billion | $78,197 |
| 21 | Wisconsin | $478.781 billion | $71,219 |
| 22 | Missouri | $475.377 billion | $69,836 |
| 23 | Connecticut | $382.596 billion | $102,307 |
| 24 | South Carolina | $378.383 billion | $63,435 |
| 25 | Oregon | $343.240 billion | $73,283 |
| 26 | Louisiana | $342.321 billion | $64,103 |
| 27 | Alabama | $339.035 billion | $59,754 |
| 28 | Utah | $319.179 billion | $70,323 |
| 29 | Kentucky | $313.566 billion | $60,835 |
| 30 | Nevada | $281.377 billion | $73,767 |
| 31 | Oklahoma | $274.292 billion | $66,055 |
| 32 | Iowa | $271.937 billion | $67,321 |
| 33 | Kansas | $232.107 billion | $69,149 |
| 34 | Nebraska | $206.616 billion | $76,055 |
| 35 | Arkansas | $195.988 billion | $61,697 |
| 36 | District of Columbia | $192.975 billion | $119,772 |
| 37 | Mississippi | $162.825 billion | $54,433 |
| 38 | New Mexico | $152.120 billion | $62,089 |
| 39 | Idaho | $137.402 billion | $64,200 |
| 40 | New Hampshire | $128.279 billion | $88,145 |
| 41 | Hawaii | $123.164 billion | $76,966 |
| 42 | Delaware | $121.940 billion | $68,630 |
| 43 | West Virginia | $111.302 billion | $58,217 |
| 44 | Maine | $101.726 billion | $71,742 |
| 45 | Rhode Island | $88.241 billion | $75,233 |
| 46 | North Dakota | $82.350 billion | $77,438 |
| 47 | South Dakota | $82.002 billion | $78,999 |
| 48 | Montana | $80.945 billion | $72,066 |
| 49 | Alaska | $73.635 billion | $80,510 |
| 50 | Wyoming | $52.491 billion | $91,109 |
| 51 | Vermont | $49.658 billion | $75,723 |
Sources. BEA annual GDP by state and personal income by state, September 30, 2026 release. GDP figures are expressed in current dollars and rounded for display. Per capita personal income includes earnings, investment income and transfer receipts, before personal current taxes. Washington, DC, is included in the ranking but is not a state.
California and Texas Gained Billions in the Revised GDP Figures
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California gained about $46 billion in the revised annual figures. Its 2025 GDP rose from the earlier $4.251 trillion estimate to $4.297 trillion. Texas received an upward revision of nearly $28 billion, reaching $2.932 trillion.
The changes came from BEA’s 2026 annual update of national and regional accounts, which brought additional source data into earlier estimates. They do not represent money added to the economy during September.
California has more than one major economic center. Silicon Valley contributes software and technology, but the Los Angeles area also has entertainment, manufacturing and international trade. Agriculture in the Central Valley and biotechnology around San Diego add further sources of production.
That range of industries helps California maintain a large lead even when individual sectors experience weaker periods. The state is not dependent on technology alone.
Texas has a different exposure. Oil and gas production affects its economy directly through mining, drilling and related industries. Lower energy activity can reduce state GDP, although Houston’s chemicals sector, corporate activity in Dallas-Fort Worth and manufacturing elsewhere provide other sources of output.
New York’s revised GDP came in slightly below its earlier estimate, at $2.466 trillion. Finance and insurance generate large amounts of economic activity, which makes the state sensitive to changes in financial markets and business services. The same high-value industries contribute to its strong personal income ranking.
Florida remains fourth at $1.806 trillion after a downward revision of roughly $29 billion. Its economy has benefited from population growth, but housing construction and consumer demand are sensitive to mortgage rates, insurance costs and the number of people moving into the state.
The ranking places California and Texas far ahead of the other states. The more interesting changes are happening just below them, where comparatively small revisions can alter the order.
North Carolina and Washington Are Separated by Only 0.4%
North Carolina moved into ninth place with $895.919 billion in GDP. Washington followed at $892.255 billion, a difference of just $3.664 billion.
The gap amounts to 0.41% of Washington’s economy, calculated from the BEA SAGDP2N annual current-dollar GDP by state series for 2025, updated September 30, 2026.
North Carolina has grown into a major center for financial services and pharmaceuticals. Charlotte contributes substantial banking activity, while universities and businesses around the Research Triangle support research and technology-related production.
Washington depends more heavily on software, cloud computing and aerospace. Those industries generate substantial output, but the state has a smaller population than North Carolina.
The income figures show another side of the comparison. Washington recorded $88,944 in personal income per resident, compared with $68,274 in North Carolina, leaving a gap of $20,670.
North Carolina has almost matched Washington in total production. Its residents, however, receive considerably less income on average. Population and the types of industries operating in each state help account for the difference.
A $3.7 billion lead on nearly $896 billion in output is small enough that future revisions could change the order. North Carolina’s ninth place is not a settled lead.
Vermont Has the Smallest Economy, but Wyoming Has Higher Income Than California
Vermont produced $49.658 billion in 2025, making it the smallest state economy. Wyoming came next at $52.491 billion, followed by Alaska at $73.635 billion.
All three states together generated about $175.8 billion, less than Arkansas alone. Yet their personal income figures tell a rather different story.
Wyoming recorded $91,109 in income per resident, slightly above California’s $90,957. Alaska reached $80,510, and Vermont recorded $75,723, according to the BEA annual state personal income tables updated September 30, 2026.
Wyoming produces substantial economic value through oil, natural gas and mining. Mining represents a major part of its economy, and the state divides total personal income among a population of fewer than 600,000 people. Those conditions help explain its high income-per-resident figure.
The amount does not mean every worker in Wyoming earns $91,109. Per capita personal income includes investment income and transfer payments as well as earnings.
Alaska also has a large resource sector relative to its population. Vermont relies more on services, manufacturing and tourism, with fewer people and fewer major metropolitan employers.
Now consider Mississippi. Its GDP reached $162.825 billion, more than three times Vermont’s total. But Mississippi residents received $54,433 in personal income per person, compared with $75,723 in Vermont.
Vermont has the smallest economy in the ranking, yet its income per resident exceeds Mississippi’s by $21,290. Total GDP measures where companies and workers produce economic value. Personal income records money received by the people who live there.
Connecticut Leads Personal Income, but Living Costs Narrow the Gap
Connecticut recorded $102,307 in per capita personal income in 2025, followed by Massachusetts at $98,700. Wyoming reached $91,109, while Mississippi was last at $54,433.
The nominal gap between Connecticut and Mississippi exceeds $47,000 per person. Living costs narrow that advantage, although they do not eliminate it.
BEA’s Regional Price Parities data, released February 19, 2026, measures how local price levels compare with the national average. The latest available indexes cover 2024.
Connecticut had an overall price index of 103.6, meaning prices were 3.6% above the national average. Wyoming was at 92.7, and Mississippi at 87.0.
Using those indexes to adjust the 2025 nominal income figures gives an indication of how the comparison changes when local prices are taken into account.
| State | 2025 Nominal Income | 2024 Price Index | Indicative Price-Adjusted Income (Mixed-Year, Not an Official Estimate) |
|---|---|---|---|
| Connecticut | $102,307 | 103.6 | About $98,750 |
| Wyoming | $91,109 | 92.7 | About $98,300 |
| Mississippi | $54,433 | 87.0 | About $62,600 |
Connecticut’s nominal income advantage over Mississippi is almost $48,000. After the illustrative price adjustment, the gap falls to about $36,000.
Wyoming ends up remarkably close to Connecticut. Its lower prices offset much of the difference in nominal income, although the mixed-year figures cannot establish which state had greater purchasing power in 2025.
Using older price indexes also introduces uncertainty. If regional prices changed more quickly in one state during 2025, the comparison would shift. The calculation shows the influence of local prices, not a final purchasing-power ranking.
Commuting adds another complication. Someone living in Connecticut and working in Manhattan contributes to GDP recorded in New York, while their earnings count toward Connecticut’s personal income. New York receives the production, and Connecticut receives the resident income.
Washington, DC, has the opposite effect in its GDP-per-resident calculations. Large numbers of workers commute into the district from Maryland and Virginia. Their production increases DC’s GDP even though those workers are not counted as district residents. The resulting GDP-per-resident figure can be unusually high for that reason.
State GDP Compared With Personal Income
The chart plots total 2025 GDP against per capita personal income for all 50 states and Washington, DC.
California, Texas and New York sit far to the right because of their enormous economies. Connecticut and Wyoming are grouped much further left but relatively high on the income scale.
Mississippi appears near the bottom, with income per resident far below Connecticut and Massachusetts. DC occupies the top of the income range but remains a relatively small economy by total GDP.
New York Led State GDP Growth in the Second Quarter of 2026
New York recorded the fastest real GDP growth in the country during the second quarter of 2026, expanding at a 4.0% annualized rate. West Virginia had the weakest result, contracting 2.3%.
Real GDP increased in 44 states and Washington, DC, according to the BEA September 30, 2026 state GDP release.
Finance and insurance contributed heavily to New York’s growth. Mining activity, meanwhile, was the leading contributor to the decline in West Virginia and Wyoming.
The national economy grew 2.2% at an annualized rate during the quarter, following revised growth of 2.5% in the first three months of 2026.
| Economic Measure | Result | Period |
|---|---|---|
| US real GDP growth | 2.2% annualized | Q2 2026 |
| Revised US real GDP growth | 2.5% annualized | Q1 2026 |
| States reporting real GDP growth | 44 states and DC | Q2 2026 |
| Fastest state growth | New York, 4.0% | Q2 2026 |
| Weakest state growth | West Virginia, minus 2.3% | Q2 2026 |
New York’s strong quarter does not mean it overtook California in economic size. Quarterly real GDP measures the pace of production after adjusting for inflation, rather than the total dollar value generated during an entire year.
New York benefited from financial activity. West Virginia, with greater exposure to mining, faced an unfavorable quarter when that industry contracted.
Personal income followed another pattern. Wisconsin recorded the fastest increase at 6.4% annualized, and North Dakota was the only state with a decline, at 4.2%, during the second quarter of 2026.
BEA published those figures in its September 30 state personal income release. The estimates are subject to revision, so the reported quarterly rates should not be treated as permanent final values.
North Dakota’s earnings declined 9.3% during the quarter. Its experience shows how changes in resource-related industries can affect incomes even in states that generate substantial economic output per resident.
California Had 5.3% Unemployment Despite Having the Largest Economy
Video published under the title “Will the Fed Follow GDP or Jobs Data? | Presented by CME Group.” It addresses US GDP, employment reports and Federal Reserve policy. The uploader, individual speakers and runtime have not been independently verified. CME Group operates derivatives exchanges and has a commercial interest in financial market activity. The video is commentary, not the source of the state employment statistics.
California recorded 5.3% unemployment in May 2026, even though it produced more economic output than any other state. Washington, Nevada and Oregon were close behind at 5.2% each.
The gap between California and those three states was only 0.1 percentage point. It would be misleading to describe their labor markets as sharply separated on that basis.
South Dakota had the lowest unemployment rate at 2.1%, followed by North Dakota at 2.4% and Hawaii at 2.5%. The national rate stood at 4.3%, according to the BLS May 2026 state unemployment statistics.
California’s large technology and professional services industries can produce enormous economic value without employing everyone seeking work across the state.
South Dakota has a smaller economy but a lower share of unemployed workers in its labor force. The unemployment rate does not tell us how much those workers earn or how many people are outside the labor force altogether.
Employment conditions also depend on participation. Someone who has stopped actively looking for work is not counted as unemployed. Comparing state job markets therefore requires labor force participation, employment and wage figures alongside the unemployment rate.
Florida Recorded the Fastest Consumer Spending Growth in 2025
Florida recorded the fastest increase in consumer spending among states in 2025, at 7.0%. California had the smallest increase at 4.2%, while spending grew 5.3% nationwide.
The figures come from the BEA October 7, 2026 state personal consumption expenditures analysis. Spending increased in every state and Washington, DC.
Health care and housing and utilities were the largest contributors to the national spending increase. The same categories led growth in Florida and California.
Florida’s population growth has expanded demand for homes, medical services and local businesses. More residents mean more spending on everyday goods and services, which contributes to the state’s economic activity.
California remains the largest state economy but recorded slower spending growth. Its results show that a large economy does not necessarily have the fastest increase in household demand.
The spending figures are measured in current dollars, so inflation contributes to the reported growth. Rising medical bills or housing costs can increase spending even when households receive no equivalent increase in the amount of services they use.
The Sun Belt Continues to Gain Economic Weight
Florida, Texas, Georgia and North Carolina now occupy four places among the ten largest state economies. Population growth and expanding metropolitan areas have contributed to their economic scale.
Florida has received substantial domestic migration, increasing demand for construction, health care and local services. Texas combines population growth with energy production, manufacturing and logistics.
Georgia benefits from Atlanta’s corporate and transportation economy, while North Carolina has major banking and research centers.
More residents increase total economic activity, but population growth also creates demand for housing, roads, schools and utilities. A state can move up the GDP ranking without improving output or income per resident at the same pace.
Our separate reporting on population growth across US states covers the demographic patterns associated with the expansion of several southern economies.
Business Applications Show Continued Activity Across the South
The South accounted for about 45% of all US business applications in May 2026, making it the largest region by total filings.
U.S. Business Applications, May 2026: Trends Remain Solid – Total business applications increased by 3.7% to 523,971. High-propensity business applications declined slightly by 0.3% to 146,555. https://t.co/q8gR6syMOn
— SBE Council (@SBECouncil) June 19, 2026
Small Business & Entrepreneurship Council post discussing May 2026 Business Formation Statistics. The Census Bureau is the original statistical source.
The United States recorded 523,971 business applications in May 2026, up 3.7% from April. High-propensity applications, which have a greater likelihood of becoming employer businesses, totaled 146,555.
The South accounted for 235,550 total applications, including 62,662 high-propensity applications. The figures come from the Census Bureau May 2026 Business Formation Statistics release.
The South’s large population helps explain its high number of applications. Total filings cannot establish which state has the highest entrepreneurship rate relative to population.
Applications also do not guarantee that a business will begin trading or hire workers. Many never become employer businesses.
The data shows substantial interest in starting businesses across the South, but actual business openings and employment are needed to determine how much economic activity follows.
Energy States Have High Output but Face Commodity Price Risks
Wyoming, North Dakota and Alaska have small economies by total GDP but significant natural resource production.
Oil, gas and mining can generate large amounts of economic output without the population or workforce found in larger states. The same industries make these economies vulnerable to changes in commodity prices and production volumes.
North Dakota illustrates that exposure. Personal income declined 4.2% at an annualized rate during the second quarter of 2026, while earnings fell 9.3%.
Texas has a more varied economy. Energy remains important, but manufacturing, finance, construction and technology contribute substantial additional production.
For resource-dependent states, quarterly industry figures provide a more useful explanation of growth than the total GDP ranking alone. A state can have high output per resident and still experience sharp changes in earnings when energy activity weakens.
Manufacturing Remains Important in the Midwest
Ohio ranks seventh by GDP, Michigan 14th, Indiana 19th and Wisconsin 21st. Manufacturing remains a major part of their economies.
Automotive production, machinery and industrial equipment continue to support economic output across the region.
Southern and western states have attracted investment in vehicles, batteries, semiconductors and aerospace. South Carolina, Tennessee, Georgia, Texas and Arizona all have significant industrial activity connected to those sectors.
Factory investment contributes to GDP in stages. Construction adds economic activity while facilities are built, and manufacturing output follows once production begins.
The longer-term benefit depends on employment, local suppliers, production volumes and the value generated in the state. Announced investment alone cannot establish how much GDP a project will eventually add.
High State GDP Does Not Guarantee Higher Living Standards
California, New York and Massachusetts have strong economies and high concentrations of well-paid industries. Their major metropolitan areas also have substantial housing costs.
Lower-cost states can offer greater purchasing power for some households despite lower nominal incomes. Wyoming’s price-adjusted comparison with Connecticut illustrates that effect.
Personal income has limitations of its own. Per capita averages are influenced by high earners and investment income, so they do not show what the typical household receives.
Our analysis of middle-class income across US states provides additional information about household earnings.
For workers and families, wages, taxes, housing and health care costs have a more direct influence on household finances than total state GDP.
California Leads the Economy, but New York Led the Latest State Growth
@topcomparison01 GDP of Every U.S. State (2000-2026) #usa #economy #usstates #statistics #financetok ♬ original sound – topcomparison01
Historical GDP comparison from TikTok creator @topcomparison01. BEA’s September 2026 data is the source for the updated annual ranking in this article.
California remains the largest economy at $4.297 trillion, followed by Texas and New York. Together, the three states generate nearly a third of US economic output.
North Carolina has moved into ninth place, but its $3.7 billion lead over Washington is small enough that later statistical revisions could reverse the order.
New York led real GDP growth in the second quarter of 2026, while Wisconsin recorded the fastest personal income growth. Florida had the largest increase in consumer spending during 2025.
Connecticut leads personal income per resident, although regional price data narrows its advantage over lower-cost states. Wyoming shows how a small resource economy can rank surprisingly high in income once population is considered.
California remains the center of US economic production by sheer scale. New York led the most recent state growth figures, and Connecticut residents received the highest per capita personal income among states. Each ranking identifies a different economic result, and the differences are where the most useful information lies.
