New Jersey has the best school systems in the nation, according to 2014's States with the Best and Worst School Systems, a new report by WalletHub.com.

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The study looked at 12 key factors including dropout rates, student-teacher ratios, bullying rates, and math and reading test scores.

While the Garden State had the best overall rank, it also took the top spot for school system quality and the number two spot for educationoutput and safety. New Jersey's math and reading test scores ranked fourth in the nation, and the state came in fifth for lowest student-to-teacher ratio, eighth for its dropout rate and twentieth for bullying incidents.

"There are many measures of school quality and New Jersey consistently ranks among the top states," said Frank Belluscio, deputy executive director for the New Jersey School Boards Association. "Our students do very well and perform very well. We do have to be cautious, though, to not rest on our laurels. New Jersey's public education system is not without its challenges, and one of the most critical is an achievement gap."

There are differences in student performance that are largely based on economic backgrounds.

"The way in which you address this is through different types of programming to reach students who may come to school from disadvantaged backgrounds," Belluscio said. "It's not just in New Jersey, but when you have a state that consistently ranks high and still has an achievement gap, it's a concern."

Massachusetts, Vermont, New Hampshire and Kansas rounded out the overall top five.

To see the complete report, click here.