American business sits on a knife’s edge in 2026. On one side lies seemingly endless opportunity from emerging technologies like artificial intelligence, from massive investments in key industries like national defense and healthcare, and from equity markets trading at or near record highs. On the other side sits war (both trade and the military kind), persistent inflation, high business costs (e.g., energy, raw materials, and borrowing), political unrest, and the real fear that soaring financial markets are in a giant bubble.
The response from business? Hurry up.
«They see a window of opportunity to move to get something done,» said Larry Gigerich, executive managing director of Ginovus, an Indianapolis-based site selection consulting firm, and chairman of the Site Selectors Guild.
States are pitching themselves as the ideal places for companies to quickly navigate these uncertain times and to end up on the side of opportunity. But which states really have what it takes to deliver for business? CNBC’s exclusive America’s Top States for Business study, now in its 20th year, is back to find out.
Each year, we rank all 50 states in ten categories of competitiveness for a total of 2,500 possible points. The states with the most points are America’s Top States for Business.
Our categories have been largely consistent since our first study in 2007. But because what matters most to business changes from year to year, we re-weight our categories annually to reflect the latest reality.
To determine the appropriate weight for each category, we start by analyzing each state’s economic development marketing materials. The more frequently a selling point is cited by the states, the more weight it carries in our study. That way, we are scoring the states based on the criteria they use to sell themselves.
What states are prioritizing in business pitches
This year, states are talking the most about their infrastructures. As a result, Infrastructure is our top-weighted category in 2026, accounting for nearly 18% of a state’s total score.
It stands to reason. Companies want strategic locations, with ready access to their customers and suppliers through a robust network of roads, bridges, ports, and airports. They want great utilities, including plenty of fresh water, and abundant, reliable, and efficient energy to power things like advanced manufacturing and data centers. Speaking of data, they want connectivity and computing power. And they want sites to build on.
They also want all that delivered quickly, which is why, for the first time in 2026, we are factoring ease of permitting into our rankings.
«It’s become an economic imperative,» said Stuart Lacey, founder of AI firm Labrynth, which provided data from its Red Tape Index for this year’s study. «Anything that removes the friction behind driving the country forward is obviously on the top of the agenda. It’s not party politics; it’s just good business, and it’s good for people,» he said.
Economy, last year’s top category amid the uncertainty surrounding the incoming Trump administration, slips to second place but not far behind at nearly 17%.
Workforce is next at nearly 14%. Worker shortages have eased as the job market has cooled and AI has boosted productivity, but skills gaps remain. In a related development, Quality of Life rises in importance, as employers seek attractive locations for the workers they are bringing back to the office.
The more weight a category carries, the more metrics it includes. While most metrics remain constant from year to year, we also choose our metrics each year to reflect the current competitive landscape. So, in 2026, in addition to the increased scrutiny on permitting, we have added new metrics to more closely examine state power grids, measuring not just reliability, but also generating capacity and costs. And we are measuring how states treat cutting-edge industries such as AI, quantum computing, and prediction markets. This year’s Top States study employs 138 metrics, the most ever.
Our study is not an opinion survey. We gather empirical data on the states’ performance in each metric using the most recent figures available. Where it makes sense, we calculate some metrics on a per capita basis or in relation to a state’s gross domestic product (GDP), to allow large and small states to compete on a level playing field.
In addition to their point totals, states receive a letter grade in each category to measure their performance relative to the competition. Grading is scaled, with the high score equal to 100 percent and the low score equal to 50 percent. However, each state’s overall ranking, as well as its ranking within each category, is based solely on the number of points scored.
Here are this year’s categories and weightings, and an explanation of each:
Infrastructure (440 points – 17.6%)
Revitalizing domestic manufacturing, rebuilding supply chains and redefining the very nature of work takes a reimagined infrastructure. Companies are clamoring to build facilities and take advantage of strong demand. So, new in 2026, we are measuring the speed at which states are approving permits for things like new construction.
We measure the vitality of each state’s transportation system by the value and volume of goods shipped by air, waterways, roads and rail. We look at the condition of highways and bridges, the availability of air travel, and the time it takes to commute to work.
With skyrocketing demand for abundant, reliable power, we scrutinize each state’s electrical grid more closely than ever before. In addition to measuring the reliability of each state’s power, we consider cost and generating capacity. Water demand is soaring too, so we evaluate the availability of fresh water and the condition of each state’s water and wastewater utilities. In an increasingly data driven world, we look at broadband connectivity, as well as large-scale computing power in each state.
We consider access to markets by measuring the population living within 500 miles of each state. We look at the availability of vacant land and office and industrial space, and we measure state site readiness programs in terms of their overall funding and the number of certified or «shovel-ready» sites. We measure each state’s sustainability in the face of climate change, looking at the risk of flooding, wildfires, and extreme weather, and how prepared each state is to face them.
Economy (415 points – 16.6%)
Particularly in uncertain times, companies are seeking states with stable finances and solid economies. We examine the economic strength of each state by looking at GDP growth and job growth over the past year. We measure each state’s fiscal condition by looking at its credit ratings and outlook, its overall budget picture including spending, revenues and reserves, as well as pension obligations. We rate the health of the residential real estate market based on multiple factors, including inventory, price appreciation, equity, foreclosure activity and mortgage delinquencies, affordability, home seller gains, and property taxes.
Because a diverse economy is important in any environment, we consider the number of major corporations headquartered in each state. We measure each state’s entrepreneurial economy based on new business formations, and we consider the survival rate of new businesses.
With more than a year of President Trump’s tariffs under the nation’s belt, we have hard data on their impacts in each state, as well as the positive impact of tariffs struck down in court. We also consider the role of federal spending and employment in each state’s economy, and states’ overall dependence on federal dollars.
Workforce (345 points – 13.8%)
With the explosion in new technology and workers in many fields in short supply, the definition of a qualified worker is expanding. In addition to measuring each state’s concentration of science, technology, engineering and math (STEM) workers and the percentage of workers with college degrees, we also consider workers with associate degrees and industry-recognized certificates. We look at which states are most successful in attracting talent at all levels, considering the net migration of educated workers to each state, and how states are faring in the competition to attract skilled workers. We look at state worker training programs, right to work laws, and worker productivity based on economic output per job.
Quality of Life (290 points – 11.6%)
As more companies mandate that their employees return to the office, they are also looking for locations that offer the best quality of life. We rate the states on livability factors like per capita crime rates, environmental quality, and healthcare. With studies showing that childcare is one of the main obstacles to employees entering or re-entering the workforce, we consider the availability and affordability of qualified facilities. We look at worker protections, including livable wage policies, paid leave, and rights to organize. We look at inclusiveness in state laws, including protections against discrimination of all kinds, as well as voting rights and secure election systems. And with surveys showing a sizeable percentage of younger workers would not live in a state that bans abortion, we factor reproductive rights in this category as well.
Cost of Doing Business (285 points – 11.4%)
Businesses of all sizes are battling persistent inflation, and location matters. We look at each state’s ability to ease business expenses. We consider the competitiveness of each state’s tax climate. We also measure wage and utility costs, as well as the cost of office and industrial space. We consider the cost of property-casualty insurance, along with forecasted premium increases. We consider the incentives and tax breaks that states offer to reduce business costs, and we consider available incentives targeted toward development in disadvantaged communities.
Technology & Innovation (245 points – 9.8%)
Truly competitive states prize innovation, nurture new ideas, and have the resources to support them. We measure the states based on results, including the number of patents issued per capita. We also consider federal health, science, and agriculture research grants. But with many of those programs still on the chopping block, we also measure each state’s risk from cuts and changes in grant formulas. We also consider which states provide their own support for research and development, independent of the federal government. With domestic semiconductor research, development, and manufacturing taking center stage, we look at each state’s place in this crucial technological ecosystem. We measure each state’s role in the artificial intelligence revolution in terms of where new AI models are being developed and where the AI jobs are, and we measure each state’s advanced computing power.
Business Friendliness (225 points – 9%)
Companies follow the path of least resistance. That includes a legal and regulatory framework that does not overburden business. We measure each state’s lawsuit and liability climates, regulatory regimes covering areas such as trade and labor, as well as overall bureaucracy. New in 2026, we measure the length and efficiency of each state’s permitting processes. As companies race to build new facilities and expand existing ones, we look at state land use regulations. We also consider how hospitable states are toward emerging industries, including artificial intelligence, digital assets and cryptocurrency; prediction markets, quantum computing, and digital health, giving them a framework for growth without stifling innovation. We consider so-called regulatory «sandboxes» that give companies leeway to innovate, and we look at legal and regulatory regimes that provide guardrails rather than obstacles.
Access to Capital (105 points – 4.2%)
Companies large and small need ready access to financing. We look at venture capital investments in each state, as well as traditional bank lending by state in relative and absolute terms. We also look at state-backed capital assistance and loan guarantee programs. And we measure foreign direct investment in each state.
Education (100 points – 4%)
A state’s education system is its main source for talent and an engine of innovation. It is also a key consideration for companies and families deciding where to put down roots. We look at multiple measures of K-12 education, including test scores, class size, and spending. We consider the number of colleges and universities in each state as well as long-term trends in state support for higher education. With the search for talent expanding to include employees with marketable, industry-recognized skills, we measure each state’s community college and career education systems.
Cost of Living (50 points – 2%)
With inflation persisting, companies and workers are seeking states where prices are stable and daily living is affordable. The cost of living helps drive the cost of doing business. We measure the states based on an index of costs for basic items. With a deepening national housing crisis, we measure housing costs for both homeowners and renters. And as the insurance crisis spreads, we consider the cost to insure a median priced home in each state.
Our Sources
We base our rankings primarily on publicly available data. In addition, real estate cost and availability data are compiled for CNBC by CoStar Group, and they are factored into the Infrastructure and Cost of Doing Business categories. Labor market data firm Lightcast developed a State Talent Attraction Scorecard exclusively for CNBC. Those results are factored into the Workforce category. In our Infrastructure category, First Street Foundation, a non-profit, nonpartisan climate risk research firm, provided data on sustainability, and Cotality, a property risk data analytics firm, provided state level data on resilience using its Property and Mortgage Resilience tool. The Site Selectors Guild, an international association of site selection professionals, compiled data exclusively for CNBC on state site readiness programs, considered in our Infrastructure category. Trade Partnership Worldwide, a Washington, D.C.-based economic policy analysis firm, compiled data for our Economy category about the ongoing state-level impact of tariffs.
Most of the rest of our information comes from federal government databases. In the cases where government statistics are not available, we seek neutral and/or ideologically diverse data sources.
We use data from every state’s primary economic development arm, and from the most recent Annual Comprehensive Financial Report (ACFR) issued by each state, in addition to the sources listed below.
