Australia's western-most state leads other states on three measures including low taxes and energy prices and high wages growth while coming in second for jobs growth and business investment.
High median rental prices of $630 was the only measure holding WA back.
Victoria came last ranking behind all states across three measures: the highest taxes, state debt and energy costs.
The state came second last in per capita economic growth, wage rises, productivity and retail spending.
However, Victoria leads in terms of jobs growth while having the second cheapest median rental costs at $565.
The rankings come from an Institute of Public Affairs report which compares states' performances against 10 economic indicators using data from the Bureau of Statistics and CoreLogic.
WA's nation-leading resources sector is important not only to the state but to the nation which puts it in stark contrast to Victoria, the institute's research fellow Lachlan Clark said.
"Out of control debt, taxes, and energy prices makes it the last place you would want to do business," Mr Clark said.
South Australia is Australia's second best performing state, leading in per capita economic growth, productivity growth and business investment while coming second on median rental costs.
It lags all other states in wages growth and came in second last for jobs growth.
Tasmania ranked third with top scores across rental costs and retail turnover, coming in second best for wages growth and low tax and state debts.
The country's only Liberal-governed state lags all states in jobs growth, productivity and business investment.
NSW scored the lowest in retail turnover and rent while coming second best across per capita economic growth, productivity and energy costs.
Queensland had the lowest state debt burden but also the lowest per capita economic growth.
Although the focus of economic policy is usually at the federal level, Mr Clark said  decisions made by state governments have real world consequences for families and businesses.
"Australians are getting left behind at a time when cost of living pressures are acute," he said.
"That is why it is vital that good policy decisions are being made by all levels of government."
IPA AUSTRALIAN STATE ECONOMIC SCORECARD
1. Western Australia - First: Wage growth, tax burden, energy costs
2. South Australia - First: Per capita economic growth, productivity growth, business investment. Last: wage growth
3. Tasmania - First: Retail turnover, rental costs. Last: jobs growth, productivity growth, business investment
4. Queensland - First: Debt burden. Last: per capita economic growth
5. NSW - Last: Retail turnover, rental costs
6. Victoria - First: Jobs growth. Last: tax burden, debt burden, energy costs
16°C