Best & Worst States For Business 2026: Inside The Rankings

Chief Executive‘s 2026 Best & Worst States for Business survey, based on hundreds of CEO responses, shows both continuity and churn. Texas remains No. 1 and Florida No. 2, with Tennessee, North Carolina and Georgia rounding out the top five.

But below the top tier, movement is meaningful. South Carolina jumped seven spots to No. 6 on the strength of those Google-style fundamentals. Ohio climbed five places to No. 7, the highest-ranked Midwestern state, helped by aggressive, targeted marketing and great storytelling, along with a sustained focus on upskilling talent already in the workforce.

In the middle of the pack, the shifts are quieter—but they’re the kind that show up later as a new factory, a new employer, a new reason a family decides to stay. Wyoming, Wisconsin and Missouri each climbed four spots this year, and Wisconsin’s move builds on last year’s nine-place jump—momentum that’s starting to look structural, not just statistical noise.

Pennsylvania rose five places to No. 26, another sign that CEO perceptions can change when a state keeps showing up, year after year, with the basics done well. “The states focusing on the fundamentals—talent, infrastructure, tax and regulatory climate—are the ones that will continue to do well,” says site selection expert Larry Gigerich, executive managing director of Ginovus consultants.

Arizona rebounded two spots to No. 8 after slipping last year, as regulators and utilities moved to catch up with the grid strain that had accompanied the state’s growth surge—approving nearly 5,000 megawatts of new generation and storage and launching multibillion-dollar expansion plans. Indiana held steady at No. 9 and Virginia at No. 10, maintaining their positions in a competitive tier where the margins between states are narrowing.

Not every story is a rise. Louisiana fell the furthest of any state this year—dropping 13 places to No. 40—as persistent gaps in infrastructure and education, combined with an unpredictable regulatory climate, continue to erode a once-formidable competitive position. Michigan slipped seven spots to No. 24, though that reads less like a verdict than a transition, as the state works to diversify beyond its auto-heavy base into technology and life sciences. Delaware dropped four places to No. 27. Colorado fell four spots to No. 36, and Washington slid four to No. 47.

At the bottom, the usual suspects hold their ground—or lose more of it. California remains No. 50, New York No. 49 and Illinois No. 48, a trio that has occupied the cellar of this ranking for years. New Jersey edged up one spot to No. 45 but remains deep in the bottom tier, hampered by high taxes, bureaucratic friction and a declining population.

Some of the most telling movements this year come from states that have been quietly doing the work. New Hampshire climbed four spots to No. 22. Kansas rose three to No. 25. Arkansas gained four to reach No. 28. These aren’t headline-grabbing relocations or billion-dollar announcements—they’re the cumulative result of states making themselves easier to do business in, year after year.

The survey, conducted among more than 650 U.S. CEOs, presidents and business owners with representation from every state, has a very simple methodology: We ask respondents to tell us what they believe to be the best and worst states for business. The results reflect what CEOs not only experience but perceive—a essential measure for any state that’s looking to attract more business.