Hawaii came in 47th place, showing no change from 2009. Excerpt:

On the spending side, the state is highly fiscally centralized due to its unique statewide school system. The tax burden is one of the highest in the country, at 11.3 percent of income. Sales, utilities, individual income, and motor vehicle license taxes are especially high.

In the regulatory policy dimension, the state government is interventionist, with strict workers’ compensation requirements, mandatory short-term disability insurance, and no right-to-work law. Land use is a politicized issue in Hawaii, and the state has the strictest zoning regulations in the country, while eminent domain abuse remains totally unchecked. The state is surprisingly laissez-faire about health insurance, with no community rating, even in small group markets; limited use of “prior approval” for premiums; and fewer mandates than average. …

Gun control laws are among the most restrictive in the country—carrying a handgun is banned for everyone but police and security guards, and purchasing either a long gun or a handgun requires a permit and 14-day waiting period—but marijuana laws are relatively liberal. … 

—Chad Blair