The basics:

• New Jersey falls one spot to 31st in CNBC‘s 2026 rankings
• State ranks last nationwide for business friendliness
• Education ranks 2nd, quality of life ranks 3rd
• Business groups urge reforms to improve competitiveness

New Jersey slipped one spot to 31st in CNBC’s 2026 America’s Top States for Business rankings, placing the Garden State in the bottom half of the nation.

The annual study, now in its 20th year, evaluates all 50 states using 138 metrics across 10 categories that companies consider when deciding where to locate or expand, including infrastructure, economy, workforce, education, business friendliness, the cost of doing business and more. CNBC said infrastructure became the most heavily weighted category this year as companies increasingly prioritize transportation access, utilities, energy availability and permitting when they select locations for investment.

Ohio claimed the top spot in this year’s rankings, followed by North Carolina, Virginia, Texas and Minnesota. As for the Garden State’s neighbors, Pennsylvania ranked 13th, New York finished 18th and Connecticut came in at 23rd — all well ahead of New Jersey.

Several business-related categories weighed down the Garden State’s overall ranking. CNBC ranked N.J. last in the nation for business friendliness, as well as 41st for infrastructure, 39th for cost of living, 38th for cost of doing business and 31st for economy.

The Garden State fared much better in several other categories, ranking second nationally for education and third for quality of life. New Jersey also placed 13th for access to capital, 19th for workforce, and 20th for technology and innovation.

Overall, the state scored 1,264 points, down from its 30th place last year.

Here’s how New Jersey ranked in each category, with 2026 scores and grades:

• Infrastructure – 41st down from 21st | Score: 186 Grade: D 
• Economy – 31st unchanged | Score: 204 Grade: C-
• Workforce – 19th down from 14th | Score: 193 Grade: C
• Quality of life – 3rd unchanged | Score: 223 Grade: A+
• Cost of doing business – 38th unchanged | Score: 108 Grade: D+
• Technology & innovation – 20th down from 16th | Score: 140 Grade: B-
• Business friendliness – 50th down from 49th | Score: 37; Grade: F
• Access to capital – 13th down from 11th | Score: 79 Grade: B+
• Education – 2nd up from 7th | Score: 76 Grade: A
• Cost of living – 39th down from 37th | Score: 18 Grade: D+

CNBC’s economic profile lists New Jersey’s population at 9.55 million, with first-quarter 2026 GDP growth of 0.8% and a May unemployment rate of 4.7%.

The report also notes the state’s 11.5% top corporate tax rate (a topic NJBIZ has reported extensively on); 10.75% top individual income tax rate; 67.55-cent-per-gallon gasoline tax; and stable Aa3/A+ bond ratings from Moody’s and S&P Global Ratings, respectively.

Constant concerns

The rankings drew criticism from the New Jersey Business & Industry Association, which said the state’s strong education system and quality of life continue to be undermined by policies that make it more difficult and expensive to do business.

“While it’s a positive to see New Jersey maintain good foundational metrics like quality of life (3rd) and education (2nd), the continuation of our bottom-of-the-pack ranking for business friendliness and high cost of doing business continue to be of great concern,” said NJBIA President and CEO Michele Siekerka in a statement.

We are at an inflection point and must ask ourselves: What is next for our job creators?
—Michele Siekerka, president and CEO, NJBIA

Siekerka said the rankings reflect years of what she called anti-business policies, arguing that New Jersey “has a reputation for not being business friendly.” She pointed to companies choosing to move, grow or invest outside the state, as well as more than 9,000 jobs affected by WARN Act notices this year.

The NJBIA leader also criticized a series of recent policy changes, including the Corporate Transit Fee, revisions to the state’s independent contractor rules under the ABC test, proposed Climate Superfund legislation and a new employer tax tied to Medicaid. According to Siekerka, those measures have made it harder for businesses to plan for the future by creating uncertainty and raising costs.

“So, we are at an inflection point and must ask ourselves: What is next for our job creators?” Siekerka said.

ISO: support for business

While praising Gov. Mikie Sherrill’s “Saving You Time and Money” initiative aimed at lowering business costs, Siekerka said the state still needs “a true reform agenda and economic growth strategy now, with a clear, intentional path to driving down business taxes and burdens, instead of seeking new ones.”

She added that New Jersey must build “a competitive business climate founded on predictability, reliability and consistency” to encourage long-term investment.

The New Jersey Chamber of Commerce also expressed concern over the state’s performance, particularly the last-place finish for business friendliness – “a distinction no state should accept” – and its standing behind neighboring states.

In a statement, NJCC President and CEO Thomas Bracken said the rankings reinforce the organization’s longstanding view that New Jersey “must make economic competitiveness and support for the business community a top priority.”

“We are disappointed that New Jersey slipped in the overall rankings from 30th to 31st as a state for doing business,” said Bracken. “Even more troubling, New York, Pennsylvania and Connecticut all ranked ahead of New Jersey. Those are the very states we compete with every day for jobs, investment and economic growth. We cannot afford to continue falling behind our regional neighbors.”

‘Not many surprises here’

Looking ahead, Bracken said the Chamber looks forward to working with Sherrill, the Legislature and the broader business community to advance policies that make New Jersey “more competitive, more affordable and more welcoming to employers.”

“The businesses that have chosen to invest here – and those considering doing so – deserve a state that is committed to helping them succeed,” Bracken said.

Economic development and site selection expert John Boyd Jr., principal of The Boyd Co., said New Jersey’s overall ranking came as little surprise, arguing the results reflect many of the state’s long-standing business challenges.

“Not many surprises here. N.J. gets a failing grade in overall business friendliness – high costs and high taxes – exactly what the NJ business community and taxpayers have been complaining about for years,” Boyd told NJBIZ.

At the same time, Boyd said New Jersey’s A+ quality-of-life ranking reflects significant advantages. He cited the state’s schools, healthcare system, universities, proximity to New York City’s cultural amenities and 130 miles of coastline.

Boyd also called New Jersey’s C grade for workforce “a bit troubling.”

“That’s a bit troubling — a signal that the state’s affordability challenges are driving STEM workers to lower-cost states,” he said.

He said Pennsylvania’s 13th-place finish should be especially concerning because it is one of New Jersey’s biggest competitors for jobs and investment.

“Gov. Josh Shapiro has successfully cut taxes, cut red tape and adopted an ‘all of the above’ approach to energy,” Boyd said, adding that the strategy has helped Pennsylvania build on major economic development wins involving companies including Eli Lilly, Amazon and Urban Outfitters.

Valuable insights

Boyd also said CNBC’s rankings are particularly influential because they evolve with the priorities of companies making location decisions rather than relying on a fixed set of criteria.

“What makes CNBC’s Top States for Business unique among the various state business climate rankings is the fact that it does not grade states against a static checklist,” Boyd said. “The survey’s methodology evolves as our field of corporate site selection evolves.”

He noted that one of this year’s biggest changes was a greater emphasis on “speed to market,” reflecting the growing importance companies place on getting new facilities up and running as quickly as possible. Boyd said faster permitting, efficient logistics and modern infrastructure allow companies to establish an early market presence, begin generating revenue sooner and gain an edge over competitors.

He pointed to top-ranked Ohio as an example, noting its logistics hubs around Columbus and the Cincinnati/Northern Kentucky region help companies accelerate expansion and shorten the time between selecting a site and opening for business.

While business executives often take national business climate surveys “with a grain of salt,” Boyd said the CNBC study remains valuable because it provides economic development agencies and policymakers with “a free and independent report card on how they are performing in those factors of the day most influencing corporate investment and location decisions.”

The governor’s office did not immediately respond to a request for comment.