California's major companies. (Photo: Grok)
California Ranks #17 on CNBC’s ‘America’s Top States for Business 2026’
CNBC’s ranking is curious since California ranks dead last once again in Chief Executive Magazine’s Best & Worst States For Business 2026
By Katy Grimes, July 9, 2026 8:01 am
To rank CNBC’s America’s Top States for Business in 2026, CNBC scored all 50 states on 138 metrics in 10 broad categories of competitiveness. CNBC identifies the factors companies consider when making site selection decisions, and where states are focusing their economic development efforts to win jobs and business. Each category is weighted based on how frequently states use them as a selling point.
California moved up to #17 from #22. As expected, California excels in technology and innovation – in fact, California received an A+ at #1.
Where California lacks is also as expected: Business friendliness (F), Cost of doing business (D-), Quality of life (C), and Cost of Living (F) – all factors when business owners consider opening a business, expanding a business, moving a business, or even continuing to stay in business.
CNBC says the Top States categories have been largely consistent since their first study in 2007, but they re-weight the categories annually to reflect market dynamics. The biggest change in 2026: Infrastructure is the top-weighted category, as companies pursue strategic locations close to transport hubs, top utilities, access to fresh water, and abundant energy to power things like advanced manufacturing and data centers. And they want it all without red tape. For the first time in 2026, CNBC is factoring ease of permitting into the rankings.
California only received a C+ in infrastructure.
And for the state with the best technology and innovation, for California to receive a C+ in education is reprehensible.
Notably, if California didn’t have Silicon Valley, and the broader Bay Area, the state’s “best business state” rankings would plummet in most surveys, as its underlying business climate scores poorly on taxes, regulations, costs, and friendliness.
Also notable, is California was just dethroned: the 2026 Fortune 500 list goes to Texas, which leads California in Fortune 500 companies 57-56.
And CNBC’s ranking is curious since California ranks dead last once again in Chief Executive Magazine’s Best & Worst States For Business 2026.
CNBC’s California’s Economic Profile:
Governor: Gavin Newsom, Democrat
Population: 39,355,309
GDP growth (Q1 2026): 3.70%
Unemployment rate (May 2026): 5.30%
Top corporate tax rate: 8.84% (10.84% for financial institutions)
Top individual income tax rate: 13.30%
Gasoline tax: 91.52 cents/gallon
Bond rating (Moody’s/S&P): Aa2, Stable/AA-, Stable
Economic profile sources: U.S. Census Bureau, U.S. Bureau of Economic Analysis, U.S. Bureau of Labor Statistics, Federation of Tax Administrators, American Petroleum Institute (including 18.40 cent/gallon federal tax), Moody’s Investor Service, S&P Global Market Intelligence
Here are CNBC’s Top Ten top states for doing business:
Best & Worst States For Business 2026: Inside The Rankings
A California native and Navy mom, Katy lives in Sacramento, CA.
- California Ranks #17 on CNBC’s ‘America’s Top States for Business 2026’ - July 9, 2026
- Did Universities Really End DEI? New Reports Suggest Otherwise - July 9, 2026
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Wait! Newsom claims California leads the way and is the model for the nation!
Somebody tell him we are not among the top 16 states.
This is from CNBC’s website: “identifying the factors companies consider when making site selection decisions, and where states are focusing their economic development efforts to win jobs and business.”
Let’s look at Technology and Innovation. Every company in the U.S. with internet has the same access to Technology and Innovation. That shouldn’t be in there.
Economy. #3 is a joke. We have more people in poverty per capita when adjusted for cost of living than any other state. Who are you going to sell product to?
Access to Capital. Unless you are a tech startup, this means nothing. There are banks all over the United States that lend, and venture capitalists fund companies all over the United State. This should be in there either.
Infrastructure. California’s roads are ranked 47th. Our electricity is highest in the nation except for the one state that is in the middle of the Pacific Ocean.
They missing two important categories. Regulations and Crime.
It is obvious that the people who put together this survey never owned a business in their life.