Texas has been overtaken as the No. 1 state that has made the most racial progress, according to a new study.

The Lone Star State led the nation in 2025, but now ranks in third place behind Georgia (No. 1) and Mississippi (No. 2). It also ranked No. 5 nationally in the list of states with the most racial integration.

WalletHub's "States That Have Made the Most Racial Progress" study is released annually ahead of Martin Luther King, Jr. Day. The report compares all 50 states and the District of Columbia across 22 relevant metrics divided into two main rankings: racial integration (which the study defines as "the current integration levels of white people and Black people") and racial progress (defined as "the levels of racial progress achieved over time").

The report's author clarifies that the study focuses only on the racial integration between Black people and white people "in light of racial tensions in recent years that sparked the Black Lives Matter movement."

"We released this report ahead of the holiday honoring Dr. Martin Luther King Jr., who played a prominent role in the Civil Rights Movement to end segregation and discrimination against Black people," the report says.

The study further divided each ranking into four main categories measuring the gaps between white people and Black people over time; spanning employment and wealth, education, social and civic engagement, and health. Texas performed the best in education and health, ranking No. 4 nationally in both categories, and it ranked in sixth place for its social and civic engagement. The state ranked 16th in the category for employment and wealth.

According to WalletHub, Texas has "done a lot" to reduce gaps in health outcomes for white and Black residents, such as reducing gaps in health insurance coverage, and reducing the share of Black Texans suffering from "poor health" and diabetes. It also notes that Texas "made the second-most progress when it comes to obesity," but it did not acknowledge the racial bias in body mass index (BMI) that has been increasingly flagged in recent years.

The report further praises Texas for reducing the gap in business ownership between white and Black Texans, and for its improvement in reducing discrimination in the parole system. WalletHub does not offer data behind the parole claim.

"It’s encouraging to look at the data and see that some states have made significant strides toward racial equality over the past few decades," said WalletHub analyst Chip Lupo regarding the overall report. "This change demonstrates that state-level policies and residents’ attitudes regarding equality have grown considerably better."

Though racial disparity gaps are closing between white and Black people, racial profiling and discrimination is still a major issue affecting Black people and other people of color across the country.

In 2023, a senate bill banned public Texas universities from having diversity, equity, and inclusion (DEI) offices and programs, prompting warnings of discrimination against Black, Hispanic, and other marginalized students, including those with disabilities.

The top 10 states with the most racial progress in 2026 are:

• No. 1 – Georgia
• No. 2 – Mississippi
• No. 3 – Texas
• No. 4 – North Carolina
• No. 5 – Maryland
• No. 6 – Florida
• No. 7 – New Jersey
• No. 8 – Massachusetts
• No. 9 – Louisiana
• No. 10 – New Mexico