The Lone Star State has proven its commitment to improving racial equality for every Texan, according to WalletHub's 2025 ranking of "States with the Most Racial Progress." Texas has moved up into the No. 1 spot after ranking No. 2 in 2024.

The annual report measures the gaps between Black and white residents across 22 metrics of equality in all 50 states and the District of Columbia to determine the rankings. States are scored across four main categories: employment and wealth, education, social and civic engagement, and health.

Texas earns top-five rankings in the the categories of health (No. 3) and education (No. 4), and ranks No. 8 in the study's social and civic engagement category. The state falls slightly behind in the employment and wealth category, ranking No. 13 overall for the second consecutive year.

WalletHub specifically praises Texas for its dedication to closing the health gaps between its white and Black residents. The report says Texas has reduced health insurance coverage gaps by 12.4 percent over the last three decades, and has lowered the share of Black residents that are "suffering from poor health and diabetes."

The state has also made progress with closing gaps in its business sector and the criminal justice system, the study found.

"For example, between 2002 and 2021, the gap in business ownership between white and Black residents decreased by 6.4 percentage points, the sixth-largest decrease in the nation," WalletHub said. "The disparity in the share of business executives who are white vs. Black also decreased by close to 8 percentage points, the seventh-largest decrease."

The report continues, "Finally, Texas is the fourth-best state when it comes to making racial progress in the parole system, which is important since Black people have faced a lot of discrimination in the criminal justice system throughout history."

In a similar ranking of states with the most racial integration, WalletHub ranked Texas No. 5 overall, marking a three-place improvement since 2024.

"Although the U.S. has made a lot of progress toward racial equality since the Civil Rights Movement, we still need to do better to ensure equal opportunities for everyone," the report said. "As we think about ways to improve equality in the future, we can also recognize the steps toward racial harmony we’ve already achieved — in our workplaces, in our schools and in our voting booths."

The top 10 states with the most racial progress in 2025, according to WalletHub, are:

• No. 1 – Texas
• No. 2 – Wyoming
• No. 3 – Mississippi
• No. 4 – Georgia
• No. 5 – New Jersey
• No. 6 – New Mexico
• No. 7 – Maryland
• No. 8 – Connecticut
• No. 9 – Florida
• No. 10 – Idaho