How It’s Calculated

The following list indicates the weighting of the relevant variables that led to the rankings of states on this website.

Economic Freedom

Regulatory Policy

Local rent control
5.3%
“Land use” court mentions
2.3%
Wharton Residential Land Use Regulatory Index
2.3%
Renewable portfolio standards
1.2%
Regulatory takings compensation
0.1%
Eminent domain reform index
0.1%
State framework for mandatory inclusionary zoning
0.1%
State “builder’s remedy” law
0.03%
Statewide urban growth boundary
0.03%
Environmental review of housing
0.03%
ADU law index
0.03%
Housing appeals board
0.01%
Parking lot gun mandate
0.01%
Mandated free speech on private property
<0.01%
Individual health insurance mandate
2.3%
Community rating, small groups
2.2%
Health insurance mandates index
1.8%
Individual guaranteed issue
0.6%
Small group rate review
0.5%
Community rating, individuals
0.4%
Direct access to specialists mandated
0.3%
Individual rate review
0.05%
Standing referrals mandated
0.03%
Individual policies, elimination riders banned
0.02%
Mandated external grievance review
0.02%
Financial incentives to providers banned
0.01%
General right-to-work law
2.4%
Short-term disability insurance
0.9%
Noncompete agreements permitted
0.8%
Minimum wage
0.7%
Workers’ compensation funding regulations
0.5%
Workers’ compensation coverage regulations
0.3%
Employer verification of legal status
0.1%
Employee anti-discrimination law
0.01%
Paid family leave
<0.01%
Nurse practitioner independence index
0.8%
Employment-weighted licensure
0.8%
Archbridge index
0.4%
Regulatory keywords in statutes
0.4%
Education requirements
0.1%
Dental hygienist scope of practice
0.1%
Physician assistant prescribing authority
0.04%
Integrated bar
0.04%
Sunrise commissions
0.03%
Nurse Licensure Compact membership
0.03%
Examination requirements
0.02%
Sunset review
0.01%
Fees requirements
0.01%
Certificate-of-need requirement for hospitals
0.7%
Rate filing requirements: personal auto insurance
0.4%
Rate filing requirements: homeowner’s insurance
0.3%
Anti-price-gouging laws
0.2%
General sales-below-cost laws
0.2%
Rate classification prohibitions
0.2%
Interstate Insurance Product Regulation Compact
0.1%
Sales-below-cost law for gasoline
0.1%
Direct auto sales
0.1%
Moving company entry regulation
0.02%
Mandatory labeling law
0.01%
Telecommunications deregulation
0.7%
Statewide cable franchising
0.3%

Fiscal Policy

State Taxation 12.5%
Government consumption and investment 8.2%
Local taxation 7.8%
Government employment 2%
Government debt 0.3%
Cash and security assets 0.2%

Personal Freedom

Crime-adjusted incarceration rate
3.7%
Drug enforcement rate
1.8%
Arrests for nondrug victimless crimes, % of population
0.6%
Arrests for nondrug victimless crimes, % of all arrests
0.6%
Driver’s license suspensions for drug offenses
0.04%
Prison collect phone call rate
0.01%
Qualified immunity reform
<0.01%
Casino and racino win (revenue)
2.5%
Slot/video games outside casinos
1.3%
Sports betting
0.1%
Pari-mutuel wagering
0.03%
Aggravated gambling felony
0.02%
Social gambling allowed
0.02%
Charitable gambling
0.01%
Express prohibition on internet gambling
<0.01%
Concealed-carry index
1.6%
Initial permit cost
0.4%
Local gun ban
0.3%
Firearms licensing index
0.3%
Waiting period for purchases
0.3%
Initial permit term
0.2%
Open-carry index
0.1%
Training or testing requirement
0.1%
Stricter minimum age
0.1%
Assault weapons ban
0.05%
No duty to retreat
0.04%
Registration of firearms
0.03%
Dealer licensing
0.02%
Built-in locking devices
0.02%
Restrictions on multiple purchases
0.02%
Background checks for private sales
0.02%
Design safety standards
0.01%
Machine guns
0.01%
Ballistic identification
0.01%
Retention of sales records
0.01%
Short-barreled shotguns
0.01%
Short-barreled rifles
0.01%
Large-capacity magazine bans
<0.01%
Sound suppressor
<0.01%
.50 caliber ban
<0.01%
Cigarette tax
1.7%
Flavored vape ban
0.8%
Minimum legal sale age 21
0.5%
Smoking ban, bars
0.2%
Internet purchase regulations
0.04%
Vaping ban on private property
0.03%
Smoking ban, private workplaces
0.02%
Smoking ban, restaurants
0.02%
Vending machine regulations
0.02%
Same-sex partnership index
1.8%
Super-DOMAs
0.7%
Sodomy laws
0.3%
Cousin marriage
0.2%
Covenant marriage
0.1%
Blood test required
0.01%
Waiting period
0.01%
Tax credit/deduction law for scholarships/expenses
1.1%
Publicly funded voucher law
0.8%
Mandatory licensure, private school teachers
0.5%
Mandatory state approval, private schools
0.2%
Compulsory school years
0.2%
Curriculum control, private schools
0.1%
Public school choice
0.1%
Curriculum control, homeschools
0.04%
Record-keeping requirements, homeschools
0.03%
Standardized testing requirements, homeschools
0.03%
Notification requirements, homeschools
0.02%
Teacher qualifications, homeschools
0.01%
Mandatory registration, private schools
<0.01%
Homeschooling statute
<0.01%
Medical marijuana index
1.1%
Possession decriminalization/legalization
0.7%
Maximum marijuana penalty
0.3%
Sales legalization
0.3%
Marijuana misdemeanor index
0.2%
Mandatory minimums
0.1%
Salvia ban
0.1%
Alcohol distribution control
0.9%
Off-premises sales in grocery stores
0.4%
Blue law index
0.3%
Spirits taxes
0.3%
Wine taxes
0.2%
Beer taxes
0.2%
Direct wine shipment ban
0.1%
Keg registration/ban
0.1%
Happy hour ban
0.02%
Mandatory server training
<0.01%
State asset forfeiture law, aggregate score
1.0%
Moving average of equitable sharing revenue
1.0%
Affirmative action ban
0.7%
Prostitution legal
0.2%
Trans-fat bans
0.3%
Raw milk legal
0.1%
Mixed martial arts legal
0.04%
Fireworks laws
0.04%
Equal Rights Amendment
0.03%
Physician-assisted suicide legal
0.03%
DNA database index
0.01%
Religious freedom restoration act
0.01%
Driver’s licenses for illegal immigrants
0.4%
Automated license plate readers
0.3%
Seat belt laws
0.1%
Fingerprint for driver’s license
0.1%
Sobriety checkpoints
0.1%
Motorcycle helmet law
0.1%
Uninsured/underinsured motorist coverage mandate
0.1%
Handheld cell phone ban
0.01%
Individual contributions to candidates
0.03%
Individual contributions to parties
0.02%
Grassroots political action committee contributions to candidates
0.01%
Grassroots political action committee contributions to parties
0.01%
Public financing
<0.01%
Note: Because of rounding and time-varying weights, percentages listed do not sum to exactly 100.