Most Libertarian States in America in 2025
Go Back To Previous PageIdentifying the “most libertarian” states in the U.S. relies on various factors, such as economic freedom, personal freedom, regulatory policies, and the extent of government intervention. Various sources rank states according to these criteria. Let’s examine some of the states frequently regarded as the most libertarian. Let’s discuss the Most Libertarian States in America in 2025!
Factors Influencing Libertarian Rankings
- Regulation: Minimal government intervention and regulation of businesses and individual behavior are key factors.
- Personal Freedoms: Support for individual liberties, including gun rights, personal lifestyle choices, and limited government intrusion into private lives.
- Economic Freedom: A business-friendly environment with minimal barriers to entrepreneurship and economic activity.
- Taxation: States with low or no income taxes and low overall tax burdens are favored.
14 Most Libertarian States
- New Hampshire
- South Dakota
- Alaska
- Florida
- Texas
- Indiana
- Tennessee
- Nevada
- Colorado
- North Dakota
- Wyoming
- Arizona
- Kansas
- Idaho
New Hampshire: The Most Libertarian States in America in 2025
New Hampshire is the most libertarian-leaning state in the United States. It is known for its motto, “Live Free or Die.” The Free State Project, a movement advocating limited government and personal 
freedom, has chosen New Hampshire.
The state does not impose a sales or income tax on wages, demonstrating its commitment to economic liberty. Furthermore, its vibrant community of liberty-minded individuals actively engages in local politics, working to preserve and enhance individual freedoms.
South Dakota: The Second Most Libertarian States in America in 2025
South Dakota is another of the most Libertarian states in the US, embracing principles of limited government. The secretary of state’s office notes about 1,930 registered Libertarian voters. South Dakota ranks sixth for fiscal policy with a score of 0.218 and eighth for regulatory policy, reflecting its commitment to a business-friendly environment.
Moreover, its state and local debt is below the national average, showcasing a prudent approach to fiscal responsibility.
Alaska
Alaska, known for its vast landscapes and independent spirit, ranks #4 in the US with 2.5% of votes from Libertarian voters. The Libertarian Party of Alaska is the state’s third-largest active party, proudly claiming the highest percentage of registered Libertarians in the nation.
Notably, Alaska made history 1978 by electing the nation’s first Libertarian state legislator, a trend that continued with three by 1984. The state’s commitment to sharing the benefits of natural resources is evident in the Permanent Fund Dividend, which distributes a portion of the state’s oil revenue to residents. This dividend emphasizes the state’s dedication to economic fairness and the well-being of its citizens.
Florida
Florida, known for its diverse population and sunny climate, excels in weather and its commitment to personal freedom. It ranks first in fiscal freedom, demonstrating its dedication to fostering a welcoming environment for businesses and individuals.
The state emphasizes personal liberty through its policies on gunned government intervention, earning it the top position in free rights, privacy laws, and limit score. Notably, Florida distinguishes itself by not imposing a state income tax, offering residents additional economic freedom.
Texas
Texas is also one of the most libertarian states in the US. It is known for its strong gun rights protections and permissive stance on personal liberties. Texas also has a pro-business regulatory environment, which encourages economic growth and entrepreneurship.
Economic freedom is also high in Texas, as the state has no income tax and a relatively low overall tax burden.
Indiana
Indiana’s commitment to a balanced budget and emphasis on individual rights has earned it a reputation as a libertarian stronghold. The state is recognized for its impressive rankings, securing third place in the overall freedom score and fifth place in economic freedom and regulatory policy scores.
Furthermore, the state’s dedication to fiscal responsibility is evident in its 10th-place overall budgetary policy score. These rankings highlight Indiana’s steadfast commitment to limited government intervention, individual liberties, and economic freedom.
Tennessee
Tennessee is recognized for its welcoming attitude toward economics. It imposes a state income tax, making it attractive to those seeking financial independence. The state nurtures a business-friendly environment, attracting individuals seeking economic opportunities. With strong Second Amendment protections, Tennessee emphasizes individual liberties, reflecting a dedication to personal freedom.
Importantly, Tennessee’s state government is relatively small. It has lower taxes and fewer regulations than many other states, highlighting its commitment to upholding one of the most complimentary regulatory environments in the nation.
Nevada
Nevada, home to the vibrant city of Las Vegas, is a popular destination for libertarians. The state maintains a limited scope of government regulations, particularly concerning gambling and prostitution. Residents also value Nevada’s absence of an income tax, which allows them to retain more of their income. Nevada performs well in the freedom rankings, holding 5th place overall and an impressive 2nd in personal freedom.
These elements establish Nevada as a sanctuary, prioritizing individual liberties and minimal government interference.
Colorado
Colorado is renowned for its stunning natural beauty and progressive social policies, aligning with libertarian values. In 2012, the state gained national attention by legalizing recreational marijuana, demonstrating its commitment to individual freedom. Colorado ranks eighth in fiscal responsibility, highlighting its dedication to balanced budgets and prudent financial management.
Furthermore, the state proudly holds the top position for occupational freedom, underlining individuals’ pursuit of their chosen careers with minimal government interference.
North Dakota
North Dakota is also one of the most libertarian states. It is known for its robust agricultural and energy industries and has a tradition of relying on itself without too much government involvement. About 2.6% of the state’s voters identify as Libertarians. With few people around, North Dakota has a close-knit community feel, making it easier for people to govern themselves.
Wyoming
Wyoming is another state where residents enjoy a significant amount of freedom. The state imposes no income tax and has one of the lowest overall tax burdens in the country. Wyoming also provides residents with considerable personal freedom and strongly supports gun rights. Furthermore, the state is very business-friendly and is recognized for its favorable regulatory environment.
Arizona
With its deserts and lively cities, Arizona is a magnet for libertarians. People are drawn to the state because it supports free-market ideas and a simple way of running things. Arizona’s low corporate taxes and friendly attitude toward businesses attract a diverse population of people who believe in liberty. Plus, it’s known for having some of the most relaxed gun laws in the country.
Kansas
Kansas, located in the heart of America, stands out for its commitment to individual freedom. The state values parental choice in education, offering options like charter schools and voucher programs, which empower parents to take charge of their children’s learning.
With high land use and occupational freedom, Kansas promotes economic opportunity and personal choices. Notably, Kansas has the best overall regulatory policy, emphasizing a minimalist approach to government intervention.
Additionally, Kansas leads the nation in protecting gun rights, reflecting its dedication to upholding individual liberties.
Idaho
Idaho is the final state on our list of the most libertarian states. The state is notable for its strong commitment to the Second Amendment and property rights, firmly establishing its libertarian position. Idaho proudly ranks 4th in gun rights, emphasizing its dedication to preserving the right to bear arms.
Additionally, it excels in economic freedom, securing the 9th position on the economic freedom index. The state’s commitment to minimizing regulations is clear, as it boasts an impressive 3rd rank in the overall regulatory score.
Most Libertarian States Bottom Line
New Hampshire, Florida, South Dakota, Wyoming, Tennessee, and Texas are among the most libertarian states due to their low tax burdens, supportive stances on personal freedoms, and business-friendly regulatory environments.
These states prioritize limited government intervention in economic and personal matters, aligning closely with libertarian principles.
Georges has been working in Wall Street for the last 16 years trading derivatives with hedge funds. He has been an active real estate investor for over a decade. Georges graduated from HEC Business School in Paris and holds a master in Finance from ESADE Barcelona.
