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Austin reigns as No. 1 U.S. state capital to live in for 2025

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Locals can be smug that they live in the best state capital in America. Photo by Tomek Baginski on Unsplash

Most Texans know everything is bigger and better in the Lone Star State, and Austin is living it up as the best state capital to live in for 2025 in America.

Austin has held on to its No. 1 title in WalletHub's just-released rankings of the "Best State Capitals to Live In."

The report examined the 50 state capitals based on four major categories: affordability; economic wellbeing; quality of education and health; and quality of life. Factors that helped determine each city's rank include housing costs, the average weekly work hours of residents, the quality of each city's K-12 school system, and much more.

Austin remained at the top of the report's "economic wellbeing" and "quality of education and health" categories, earning No. 1 in both, and ranked within the top 10 for its affordability (No. 7).

The report dubs Austin one of the "most educated cities" nationally, as the city has the fourth-largest percentage of residents (aged 25 and older) with a bachelor's degree. But it's the city's public education system that earned the highest nods with the greatest share of public schools being rated "above average" by nonprofit organization GreatSchools.org.

"In addition, [Austin] has the third-highest percentage of high schoolers who graduate within four years, along with high-quality university education," the report's author wrote.

WalletHub says Austin has proportionally the highest median household income ($87,519 annually) out of all 50 state capitals, when adjusted for the city's cost of living.

The study also praised Austin's business environment – likely boosted by its wealth of tech companies – and the city has the fourth-highest growth rate of new businesses nationwide.

Austin also performed quite well in the national "quality of life" rank, earning No. 11 overall.

"Finally, Austin offers both a safe and fun environment, with the second-highest life expectancy for residents and an extremely high number of attractions and restaurants per capita," WaletHub said. "It’s no wonder so many people have moved to the capital of Texas in recent years."

The top 10 best state capitals to live in America are:

  • No. 1 – Austin, Texas
  • No. 2 – Madison, Wisconsin
  • No. 3 – Raleigh, North Carolina
  • No. 4 – Boise, Idaho
  • No. 5 – Atlanta, Georgia
  • No. 6 – Lincoln, Nebraska
  • No. 7 – Salt Lake City, Utah
  • No. 8 – Denver, Colorado
  • No. 9 – St. Paul, Minnesota
  • No. 10 – Columbus, Ohio
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