Massachusetts Ranks as the Second Least Federally Dependent State in 2026

When it comes to getting by without much help from Washington, Massachusetts is standing mostly on its own. A new report from the personal finance site WalletHub lists the Bay State as the second least federally dependent state in 2026, behind only Connecticut.

The annual ranking examines how much each state relies on federal money compared to what it pays in taxes. WalletHub evaluated all 50 states using three measures: the return residents get on federal taxes paid, the share of federal funding in a state’s revenue, and the percentage of federal jobs in the workforce.

For Massachusetts, the numbers show a pattern of self-reliance. The state ranked 50th in return on taxes paid, meaning it sends far more money to Washington than it gets back. It also ranked 42nd in federal funding as a share of state revenue and 44th in the share of federal jobs.

You can see the full list of state rankings on WalletHub’s website.

“Regardless of whether the distribution of federal funds is fair or not, living in one of the most federally dependent states can be beneficial for residents,” said WalletHub analyst Chip Lupo. “For every dollar residents of the top states pay in taxes, they get several dollars back in federal funding, which often leads to higher-quality infrastructure, education, public health and more.”

That’s not the case in Massachusetts, where the economy has long been buoyed by a strong tax base, universities, hospitals, and an expanding tech sector. The state’s low dependence suggests it funds most of its own public spending — a reflection of both high income levels and relatively lower reliance on federal workforce dollars.

Alaska, by contrast, topped the list as the most federally dependent state. According to Lupo, nearly 45% of Alaska’s revenue comes from federal funds, and “for every $1 that residents pay in taxes, the state receives $2.52 in federal funding.”

Experts say the balance of federal support across states is about stability — not favoritism. “Think of the United States like a massive family where some siblings earn more than others,” said Andrew Burnstine, a professor at Lynn University, in WalletHub’s report. “States like New Jersey and Massachusetts are typically net contributors, while states like New Mexico and West Virginia often receive more than two dollars in benefits for every dollar their citizens pay. Subsidizing ensures that a child in a low-income area still has access to the same basic infrastructure and safety as a child in a wealthy tech hub.”

He added that what’s emerging in 2026 is a “Fiscal Fortress” trend — states building financial stability without counting on federal rescues. With 29 states now growing their rainy-day funds to record levels, states like Massachusetts could serve as models for fiscal self-sufficiency even in uncertain economic times.