North Dakota tops 2026 state finances report with taxpayer surplus

Key Points:

• According to Truth in Accounting's 2026 Financial State of the States report, 24 U.S. states lack sufficient funds to cover their bills, while North Dakota leads with a $21 billion surplus and a taxpayer surplus of $72,300.
• North Dakota's strong financial position is supported by its Legacy Fund, fueled by oil tax revenue, and supplemented by investment earnings and federal grants despite declining energy tax revenues.
• The top five financially stable states are North Dakota, Alaska, Wyoming, Utah, and Tennessee, with taxpayer surpluses ranging from $11,400 to $72,300, contrasting sharply with nearly half the states facing financial shortfalls.
• New Jersey ranks last with a $162.3 billion deficit, translating to a $45,800 taxpayer burden, followed by Connecticut, Illinois, Massachusetts, and California, all with significant unfunded liabilities.
• States face major pressure from $775 billion in unfunded pension liabilities and $490 billion in retiree health care obligations, though most states saw financial improvements in 2025 due to strong investment returns.