Money can make people happier, but it's not everything, according to a 2022 study.

You have a lot to smile about if you live in Maryland. A new study by WalletHub ranked Maryland as the second happiest state in America. The study looked at three major environmental factors: work, emotional and physical well-being, and community to determine each state's happiness factor.

Maryland got the highest scores for community and emotional and physical well-being. The only state better than Maryland was the sunny aloha state of Hawaii. West Virginia is the least happy state, according to the study.

Maryland has a diverse, vibrant economy with a median income of $86,738, one of the highest in the country. But money isn’t the only key to happiness. Once basic needs like shelter, food, and housing are met, humans need to socialize with others and make contributions to society.

“Money is important in as much as it helps us achieve basic needs (described above) or other things that would bring happiness. So having money does not make people happy, but spending money in strategic ways can make people happy, says Dylan Faulkner Selterman, Ph.D., Associate Teaching Professor at Johns Hopkins University. “People tend to be happier when they spend money on others (altruistic spending), or on time-savers, such that people have more leisure time to spend on fun or meaningful activities.”

In addition to stable income and unemployment rates, WalletHub’s study looked at safety, job satisfaction, and other well-being factors like sleep, participation in sports, work hours, and divorce rates. Maryland had low rates of suicide and depression and a higher rate of residents volunteering to help others.

Rounding out the top five happiest states were Minnesota, Utah, and New Jersey. Alabama, Kentucky, Arkansas, and Louisiana joined West Virginia at the bottom.

To view all the states' rankings and see more details about the study visit WalletHub.com.