Connecticut is not considered a “fun” state, ranking 43rd overall in a new WalletHub report. This quirky detail reveals a deeper problem plaguing the state: that high taxes and burdensome regulations directly impact residents’ quality of life.
In “Most Fun States in America (2025),” the Constitution State finished ahead of only Alabama (44), Vermont (45), Arkansas (46), Delaware (47), Rhode Island (48), Mississippi (49), and West Virginia (50). Meanwhile, California, Florida, and Nevada placed in the top three.
Though Connecticut inched up one place from last year, the state’s overall low ranking “comes down to a lack of balance between strengths and weaknesses,” WalletHub analyst Chip Lupo told Yankee Institute. Positively, Connecticut scores well in marinas per capita, personal spending on recreation, and beach quality. But it ranks poorly for nightlife and entertainment options.
“[Nightlife] ranks 50th overall, dragged down by high beer and wine prices (45th), very few nightlife options per capita (44th), an early last call (44th), and limited music festivals (44th),” Lupo said. “Even though it has relatively strong access to bars (14th) and a decent number of performing-arts theaters (15th), the state doesn’t offer the density or variety of nightlife choices that make other states stand out.”
He added, “In short, Connecticut’s recreational opportunities lean heavily toward boating and beaches, but its limited attractions and weak nightlife scene hold it back from being considered a ‘fun’ destination compared to its peers.”
This result is not an outlier for Connecticut as it has not fared well in other recent WalletHub reports. In January, the state ranked 49th overall in “Best & Worst States to Start a Business (2025).” In two May studies, Connecticut cities were among the least affordable housing markets and worst places to raise a family in America.
High costs, burdensome regulations, and an unfriendly business climate have contributed to these weak performances — and directly weigh on the state’s “fun” ranking. It’s evident that residents and families’ disposable income and day-to-day enjoyment are tied directly to government spending and taxation choices.
“States that are difficult or expensive to start a business because of high taxes, strict regulations, or other barriers often have fewer new restaurants, entertainment venues, and recreational businesses opening,” he stated. “This can limit the variety and availability of activities, which contributes to Connecticut’s lower ‘fun’ ranking. Simply put, a tougher business environment can translate into fewer options for residents to enjoy.”
Connecticut’s affordability crisis, slow economic growth, high housing and energy costs, and heavy tax burden all trace back to state government overspending and overregulation. Earlier this year, lawmakers even bypassed the constitutional spending cap via a “fiscal emergency” declaration for the first time in nearly 20 years.
Breaking the spending cap stings as fiscal progress has been made since the 2017 budget crisis, primarily due to the fiscal guardrails: reforms designed to protect taxpayers from budget shortfalls and tax hikes. Since enacted, the guardrails have reversed decades of pension underfunding, improving Connecticut’s creditworthiness and financial stability. Moreover, the guardrails’ focus on debt reduction and controlled spending freed up funds for meaningful tax relief — in particular the state’s first income tax cut in decades in 2023.
Despite these gains, some lawmakers are considering further loosening the guardrails in a rumored special session this fall
However, undisciplined fiscal spending and strict regulations “can affect how much ‘fun’ a state feels,” Lupo said. This perception matters because being a ‘fun’ state “provides its residents plenty of ways to stay active, socialize, and enjoy life, benefiting both mental and physical health.”
“States with a variety of attractions, restaurants, outdoor activities, and nightlife make everyday life more engaging and may also appeal to visitors,” he reiterated. “Limited options, however, may force residents to venture outside of their state for entertainment.”
To boost its ranking, Lupo suggests that Connecticut could expand attractions, improve nightlife, invest in recreation, and add amenities such as movie theaters, arcades, and festivals. But these improvements require private investment — and that means lawmakers must make the state more affordable by lowering taxes and reducing regulations. As the U.S. Chamber of Commerce asserts, “When businesses face lower tax burdens, they have more capital to invest in operations, innovation, and expansion, leading to job creation and increased productivity.”
For Connecticut, this starts with fiscal discipline. Lawmakers must resist the temptation to bust the guardrails for short-term spending. Limiting government growth may not be “fun” for politicians, but it is the surest path to restoring affordability, expanding recreational opportunities, and making Connecticut a place where people want to stay, grow, and thrive — and play.
After all, people go where it is “fun.” Overspending will only drive them away.
