The 5 most independent states of America — and the 5 least indepedent

Despite the chill, Vermont rounds out the bottom of the most independent states in the union. The northeastern state has some of the highest scores across three of WalletHub’s categories — financial dependency, government dependency, and job market dependency.

Just 12% — $3.8 billion — of the state’s budget came from federal government funding in 2021, according to U.S. Census Bureau data. Additionally, more than 68,000 people received food stamps and other aid that year.

Vermont’s unemployment rate has continued to stay low in recent years; in May, the unemployment rate was just 2.2%, below the then-national average of 3.8%.

West Virginia rounds out the bottom of the least independent states, with WalletHub giving the state poor scores for government dependency and vice dependency.

The Mountain State has received a lot of support from the federal government in recent years. According to PolitFact, the state was given $92.4 billion in federal funds between 2020 and 2023, about $30 billion higher than during the prior four-year period. In 2021, West Virginia received $13,655 in federal cash per capita, making it the seventh biggest per capita recipient that year.

Wisconsin falls just one spot short of entering the top three most independent states, primarily boosted by its strong job market.

The Badger state’s unemployment rate has been on the decline over the last few years. Over the last 12 months, many of the state’s industries have added new jobs, such as the mining and logging industry, while just two have shed some workers — the financial activities and professional and business services industries.

Alaska is the state most reliant on the federal government, according to WalletHub, which leaves it as one of the least independent states.

In one debated version of the state’s most recently proposed budget, $3.5. billion or almost 29% comes from federal funding. Alaska is the second biggest recipient of Supplemental Nutrition Assistance Program benefits, with residents receiving an average of $376 per month, according to KFF.

The Last Frontier is also one of the most dependent states for the job market and international trade dependencies.

Florida takes bronze for most independent, much to the shame of Florida men everywhere. The Sunshine State has one of the earliest “tax freedom days” across the U.S., or the number of days since the start of the year that residents have earned enough to pay back their tax bills for the year. In 2024, Floridians will spend an average of 107 days working to pay off their federal, state, and local tax obligations, according to Florida TaxWatch.

Florida also has some of the lowest-share of addictions with addictions to substances like alcohol and nicotine, as well as gambling, according to WalletHub. The state’s unemployment rate is the ninth-best nationally.

Mississippi has historically had high rates of poverty of as high as 21%. Although poverty has since fallen to about 18%, the state’s economy — and its residents — isn’t doing so hot, which has helped make it one of the least independence states.

Just 53.7% of the state is actively working, compared to the nation’s average of 62.7%. In January, Mississippi Lieutenant Governor Delbert Hosemann said “our economy is not sustainable with further declines,” noting that economic development “will wilt” without an educated and skilled workforce.

The average hourly wage in Mississippi across all occupations is $22.87, while the annual is $47,570, according to data released by the state in April. Hourly wages for “experienced” workers come out to $28.48, with annual wages of $59,240 across all occupations.

Mississippi is also ranked by WalletHub as having the highest dependency on vices, such as alcohol or gambling. Addiction is a serious problem in the Magnolia State — 219 people for every 100,000 residents underwent substance use treatment in 2021. About 16.5% of the state’s population has a substance use disorder, according to government data.

Colorado is the runner-up for most independent state. WalletHub cites the the Centennial State’s low reliance on imported goods to support jobs and exports outside of the U.S. In 2023, it was the 32nd largest exporter of goods in the country, earning $10.4 billion, according to the Office of the U.S. Trade Representative.

WalletHub also cites residents’ good savings habits. Colorado has the ninth-highest and sixth-highest share of people who are setting aside money for their children’s college fund and saving for emergencies, respectively.

Kentucky is one of the least independent states in the nation, primarily because of its high reliance on government funding, dependence on international commerce, and lack of financial independence.

The Bluegrass state had the highest dependence on international trade in the union, according to Wallethub. It shipped out $40.2 billion worth of goods last year, up more than 16% compared to 2022 and breaking its previous records. That accounts for 14.5% of the state’s gross domestic product. In 2021, the latest year for which data is available, Kentucky’s exports supported 109,000 jobs, or about 5% of all jobs that year.

About 46% of Kentucky’s revenue in 2021 came from the federal government, according to WalletHub. Plus, residents get $3.45 in federal aid for every $1 they pay in taxes, according to the company.

Kentucky is also ranked as one of the most financially dependent states, based on the state’s poverty rates and other factors, such as median debt per income or median household income. More than 16% of residents are impoverished, according to U.S. Census Bureau data. The median income per household in the state is $59,341 annually, while the average household has an average bank card balance of $5,098, according to Bankrate.

Utah took the gold in WalletHub’s rankings, mainly because of its solid economy and workforce.

Although Utah’s reliance on federal funding has grown in recent years — with $9 billion of its almost $34 billion expenditures coming from federal cash — the state is still one of those less reliant on aid, according to WalletHub. The state’s low unemployment rate and high median income of almost $84,000 also contributed to its ranking.

WalletHub also cites the “extremely low” percentage of residents who rely on public assistance income or receive food stamps. However, Utah has been criticized in the past for its reliance on the Church of Jesus Christ of Latter-day Saints to pick up the slack in helping poorer individuals.

Louisiana is the least independent state in the union, according to WalletHub.

The Bayou State ranks in the bottom 10 for each of the overall categories scored by the researchers, including the second-worst spot for financial dependency. Louisianans have the highest credit card debt burden, with an average credit card balance of $4,796, according to Bankrate. The state is home to the fourth-lowest average income, $6,598 monthly.

Louisiana is also a big spender of federal cash. The Pelican State’s full year 2024 budget counts on $24.4 billion in federal aid, or almost 47% of the total allocated funding. The biggest recipient of that cash is Louisiana’s health department, followed by the agency overseeing education and the executive branch.