Where CA Ranks Among Best States For Business In 2026

California ranks No. 17 among the best states in the country for doing business, according to CNBC’s annual comparison of all 50 states.

The state rose five places from No. 22 last year in the 2026 America’s Top States for Business rankings.

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The Golden State earned its highest marks for technology and innovation, as well as access to capital ranking No. 1 in both categories nationally.

The state struggled most in cost of living where it ranked No. 50. It also placed No. 47 for cost of business friendliness and No. 46 for cost of doing business.

California's finish reflects a mix of competitive advantages and persistent challenges for companies considering whether to locate or expand in the state.

California's 2026 Rankings

CNBC scored the states on 138 measurements across 10 categories. Here’s where California ranked by category:

• Overall: No. 17
• Infrastructure: No. 26
• Economy: No. 3
• Workforce: No. 17
• Cost of doing business: No. 46
• Quality of life: No. 29
• Technology and innovation: No. 1
• Education: No. 20
• Business friendliness: No. 47
• Access to capital: No. 1
• Cost of living: No. 50

The rankings do not measure only taxes or regulations, and they are not specifically a ranking of the best states for starting a small business. A state can perform well overall while carrying high business or living costs or rank poorly in quality of life while remaining attractive because of its workforce, economy or infrastructure.

The rankings are intended to reflect factors companies consider when deciding where to locate or expand. Each category is weighted according to how often states emphasize it in their own economic-development pitches.

Infrastructure carried the most weight this year as companies placed greater emphasis on transportation connections, dependable utilities, water supplies and the energy needed for advanced manufacturing and data centers. CNBC also considered the ease of obtaining permits for the first time.

The economy, which was the most heavily weighted category in 2025, moved to second place, followed by workforce.

The Best In The Country

States could receive a maximum of 2,500 points.

Ohio finished first overall with 1,623 points, followed by North Carolina, Virginia, Texas and Minnesota. Ohio’s No. 1 finish was the state’s first in the 20-year history of the CNBC rankings.

North Carolina, the 2025 winner, finished nine points behind Ohio with 1,614 points.