(The Center Square) – Utah tops the nation for best economic outlook, according to the 2025 “Rich States, Poor States” policy rankings released Tuesday by the American Legislative Exchange Council.
It’s the 18th consecutive year that ALEC ranked Utah as No. 1. Its annual “Rich States, Poor States” report ranks states based on their economic outlook per factors varying from rates for personal, corporate, property and sales taxes, to employer costs, including workers’ compensation and minimum wage.
The Beehive State was ranked first for its lack of a state-level inheritance tax, the state’s right-to-work status and low federal minimum wages although the report noted that Tennessee and North Carolina could catch up.
“Utah’s consistent top ranking is a testament to the principles that have guided our state for nearly two decades – low taxes, responsible spending and policies that foster innovation and opportunity,” said U.S. Sen. Stuart Adams, R-Utah. “But this isn’t just about rankings. It’s real people and real opportunities. A thriving economy means more jobs, better wages and a higher quality of life for all Utahns.”
In the 10-year measure of GDP growth, Utah ranked first among states with nearly 108% in growth between 2013 and 2023.
For domestic migrants who moved to the state, Utah ranked down at 13 with over 126,000 migrants from the 10-year period. Williams said the state of around 3.5 million residents would have ranked higher if the variable were measured per capita.
The Beehive State has also experienced consistent non-farm payroll employment increases over the last decade, ranking first for total growth at almost 33%.
“I find it fascinating… Utah would rank 23rd if it did nothing after it ranked first in 2007,” said Williams.
But since that first “Rich States, Poor States” 2007 ranking, Utah’s legislators have taken action, with positive reactions from the ranking. One noticeable way was in recent tax cuts, where the Beehive State ranked seventh.
The only notable outlier for the state on the “Poor States, Rich States” ranking was Utah’s bottom-fifth ranking at 40 for its high sales tax burden.
Utah also had a notably high ranking at sixth for its low worker’s compensation cost at an average multiplier of $0.86. The compensation is calculated by taking $0.86 X (an annual payroll/100). Low worker’s compensation means employees get paid less if they are injured. It also means employees and employers save money.
ALEC describes itself as “America’s largest non-partisan, voluntary membership organization of state legislators dedicated to the principles of limited government, free markets and federalism.”
“To realize President (Donald) Trump’s vision for a Golden Age of America, our path to economic revival must run through the states,” said ALEC CEO Lisa Nelson. “The 18th edition of ‘Rich States, Poor States’ demonstrates that states embracing free-market principles become magnets for families, job creators and opportunity.”
