Texans have long believed that everything is bigger and better in the Lone Star State—and now, Austin has once again proven them right. The Texas capital has secured its place as the No. 1 best state capital to live in for 2025, according to WalletHub’s latest rankings.
For yet another year, Austin has claimed the top spot in WalletHub’s “Best State Capitals to Live In” report, which evaluates all 50 state capitals based on four key factors: affordability, economic wellbeing, quality of education and health, and overall quality of life.
Why Austin Stands Out
Austin dominated in economic wellbeing and quality of education and health, ranking No. 1 in both categories. It also placed an impressive No. 7 for affordability.
The city continues to shine as one of the most educated places in the country, boasting the fourth-highest percentage of residents (ages 25 and older) with a bachelor’s degree. Even more impressively, its public school system received top marks, with the highest percentage of public schools rated “above average” by GreatSchools.org.
Austin’s commitment to education is further reflected in its high school graduation rates, where it ranks third-highest in the nation for students graduating within four years. Combined with its world-class universities, the city’s educational landscape is a key contributor to its top ranking.
Thriving Economy & High Quality of Life
Austin’s median household income—$87,519 annually—ranks No. 1 among all U.S. state capitals when adjusted for cost of living. The city’s thriving tech industry and booming business environment also earned praise, with Austin ranking fourth in the nation for new business growth.
Beyond financial success, Austin offers an exceptional quality of life, securing the No. 11 spot nationally. WalletHub highlighted the city’s high life expectancy (second-highest in the country) and abundance of attractions, restaurants, and entertainment options.
With its strong economy, top-tier education, and unbeatable lifestyle, it’s easy to see why so many people continue to flock to Austin.
Top 10 Best State Capitals to Live In (2025)
♦Austin, Texas
♦Madison, Wisconsin
♦Raleigh, North Carolina
♦Boise, Idaho
♦Atlanta, Georgia
♦Lincoln, Nebraska
♦Salt Lake City, Utah
♦Denver, Colorado
♦St. Paul, Minnesota
♦Columbus, Ohio
Whether you're already an Austinite or considering a move, the city’s continued success speaks for itself. Austin isn’t just the heart of Texas—it’s the best state capital in America to call home.
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