For the sixth year in a row, Austin, Texas, has been named the best state capital to live in, according to WalletHub’s annual rankings. The study, which evaluates all 50 U.S. state capitals, assessed factors such as economic stability, affordability, education, healthcare, and overall quality of life. Austin consistently outshined other capitals across the country, reaffirming its reputation as a top destination for families, professionals, and entrepreneurs.
WalletHub’s extensive evaluation considered 48 key indicators, including job opportunities, median income, healthcare access, education quality, life expectancy, and cost of living. With an overall score of 64.75, Austin secured the top position, comfortably ahead of second-place Madison, Wisconsin. The rankings highlight Austin’s strong economy, thriving job market, cultural vibrancy, and high standard of living, all of which contribute to its appeal as a desirable place to call home.
Austin’s economic prosperity is one of the key factors driving its top ranking. The city leads the nation in business growth, job availability, and median income, ranking #1 in WalletHub’s economic well-being category. The median household income in Austin is an impressive $87,519, significantly surpassing that of Hartford, Connecticut, which ranked last in economic well-being. The city’s dynamic economy continues to attract businesses, startups, and major tech companies, further solidifying its reputation as a business-friendly hub.
Beyond economic success, Austin’s education and healthcare systems are among the best in the country. The city ranks in the top five for high school graduation rates and offers some of the best healthcare facilities in the nation. Austin has one of the lowest premature death rates among state capitals, making it an attractive location for individuals and families prioritizing health and wellness. Additionally, it ranks fourth in the U.S. for the percentage of residents aged 25 and older with a bachelor’s degree or higher, demonstrating a strong commitment to education and professional development.
What Makes Austin a Top Choice for Residents?
Austin’s quality of life extends far beyond its economic and educational strengths. The city’s diverse cultural scene, outdoor attractions, and vibrant entertainment options contribute to an unmatched living experience. As the state capital of Texas, Austin boasts a thriving arts and music scene, an array of dining options, and year-round outdoor activities. Whether residents are exploring the city’s parks, enjoying live music on Sixth Street, or attending cultural events, Austin offers a rich and engaging environment for people of all ages.
One of Austin’s standout features is its life expectancy, which ranks as the second highest among U.S. state capitals. The city’s commitment to green spaces, recreational activities, and a health-conscious lifestyle has contributed to a longer and healthier life for its residents. Despite being ranked seventh in affordability, Austin’s high median income and strong job market help offset its rising cost of living, ensuring financial stability for many who choose to live there.
WalletHub’s 2025 rankings also revealed the best and worst state capitals to live in. While Austin secured the top spot, the top five best state capitals also included Madison, WI; Raleigh, NC; Boise, ID; and Atlanta, GA. Meanwhile, the bottom-ranked capitals were Augusta, ME; Trenton, NJ; Jackson, MS; Baton Rouge, LA; and Dover, DE. The rankings emphasized key areas such as economic opportunity, education, healthcare access, and overall livability to determine the best places to live.
Austin’s ongoing appeal is largely attributed to its well-balanced blend of job opportunities, cultural experiences, and quality healthcare and education systems. The city’s rapid growth has not slowed its ability to maintain a high standard of living for its residents. With its unique mix of urban energy and community-driven values, Austin continues to attract new residents seeking a thriving, diverse, and economically stable environment.
As Austin looks to the future, the city’s continued investment in infrastructure, technology, and sustainability is expected to keep it at the forefront of urban excellence. Whether for young professionals launching their careers, families looking for strong schools and healthcare, or retirees seeking a vibrant and engaging place to live, Austin remains a premier destination that offers an outstanding quality of life. With its thriving economy, strong educational institutions, and cultural dynamism, it is no surprise that Austin has once again been named the best state capital to live in for 2025.
