What does it take to be happy? According to WalletHub’s annual Happiest States in America report, the state you live in plays an important role. The personal finance website compared happiness indicators on a state-by-state basis, ranking all 50 states across three different categories: emotional and physical well-being, work environment, and community and environment. According to WalletHub’s findings, the happiest people live in places with strong communities, job security, access to health care, and outdoor amenities. Read on to see which states have cracked the happiness code in 2025.
10. Idaho

Idaho ranks as the 10th-happiest state in America, with high scores in two important categories: work environment and community. In terms of employment, Idaho is home to a thriving job market with the highest income growth in the country. In recent years, Boise has established itself as a mini tech capital, with more and more tech companies flocking to the region to set up shop. When you factor in all the outdoor recreation opportunities of the surrounding Rocky Mountains, it’s easy to see why so many Idaho residents can’t help but feel content.
9. Massachusetts

Massachusetts continues to climb in its ranking, moving up one spot from 2024 to become the ninth-happiest state in the country in 2025. The state’s employment opportunities and social welfare amenities contributed to residents’ overall happiness. Plus, the Bay State is home to some of the country’s best hospitals and health care systems, and approximately 97% of residents are insured. Residents also have access to excellent schools, state-funded grants that cover childcare, top-ranked universities, and a booming job industry in fields related to tech, education, and STEM (Science, Technology, Engineering, and Mathematics).
8. New Hampshire

The Granite State’s No. 8 ranking in the Happiest States in America report comes down to several factors, such as having the lowest health insurance premiums in the country and enviable tax breaks that include no sales tax and no taxes on earned income. New Hampshire is also known for being safe and family-friendly, and residents have easy access to acres of wilderness, local ski hills, and well-maintained state parks.
7. California

There are many reasons to love living in the Golden State, but according to WalletHub’s findings, residents seem to benefit the most from feeling good mentally and physically. It helps that California’s sunny weather and mild winters allow residents the opportunity to enjoy the outdoors regardless of the season. On top of that, California also ranks as one of America’s most fun states, with plenty of recreational activities to keep its residents occupied — from top-rated restaurants to amusement parks, museums, and an active nightlife scene.
6. Utah

Although it claims the sixth spot overall in the 2025 Happiest States ranking, Utah ranked better than any other state in two key categories: community and environment and work environment. Utah residents work fewer hours per week than the average American, arguably proving that a work-life balance is key to happiness. Utah is also home to the highest volunteering rate in the country, which not only improves the community as a whole but also fosters a sense of connection among residents.
5. Connecticut

Connecticut may be small geographically, but the Nutmeg State sure is mighty when it comes to happiness. Residents in America’s fifth-happiest state report feeling financially secure and community-oriented. Flexibility is another key component to workplace happiness, with Connecticut ranking high as a desirable place to live for remote workers. The state also boasts an excellent education system, abundant natural beauty, and convenient access to urban centers like New York City.
4. New Jersey

New Jersey’s ranking as the fourth-happiest state might just prove that physical wellness can get you pretty far in terms of happiness. The Garden State grabs the top spot in the physical and emotional well-being category, and it has the stats to prove it: New Jersey’s depression rate and obesity rate are lower than the national average, while the state’s life expectancy is higher, with fewer premature deaths. Perhaps this can be attributed to New Jersey’s gym obsession — a recent study gave residents top marks for their commitment to working out.
3. Nebraska

While there’s plenty to be happy about in the Cornhusker State, it is particularly regarded for its active, close-knit communities, with locals generally finding each other trusting, supportive, and friendly. Access to the great outdoors also contributes to quality of life, with Nebraskans enjoying all sorts of active hobbies, including hunting, hiking, fishing, and even sailing on Lake McCounaughy. Plus, Nebraska has a low unemployment rate, around 3%, which contributes to a strong economy and job security, making residents feel more at ease in the workplace.
2. Maryland

As the second-happiest state in the country, Maryland demonstrates how mental health is one of the most important factors in determining happiness. Not only do residents report fewer traumatic events from childhood, but they also seem to be happy at their jobs, with fewer social media complaints about work-life stress. Throw in an excellent education system and access to big-city amenities in Baltimore and Washington, D.C., and you can see why so many Maryland residents are smiling.
1. Hawaii

For the second year in a row, Hawaii has earned the No. 1 spot as the happiest state in the country — and it’s easy to see why. The Aloha State’s top score in the emotional and physical well-being category reveals that, for many, living in a tropical paradise is all that it’s cracked up to be. Not only does Hawaii have a lower depression rate, but the good weather and abundant sunshine also encourage an active lifestyle. This results in 85% of Hawaiians being in better health than the average American, which seems to impart longer (and happier) lives.
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