Ohio has been crowned the top state for business in the United States in 2026 by CNBC, thanks to its unparalleled accessibility and highly competitive cost advantage.
For the Buckeye State, which was once known as the core of the “Rust Belt,” this achievement marks the peak of its long rise. In the first CNBC ranking conducted in 2007, Ohio was only ranked 30th. Today, the state has become a magnet for growth, capital, and innovation, truly embodying its slogan of being “The Heart of it All.”
“We have been committed to strategically positioning Ohio as the preferred location for businesses to settle,” said Republican Governor Mike DeWine in his State of the State address in March this year.
These efforts have paid off. Last year, Ohio made it to the top five on the CNBC list for the first time. This year, coinciding with the 20th anniversary of the annual ranking, the current competitive environment has fully leveraged the state’s greatest strengths.
Infrastructure is considered a top priority in this year’s “Best States for Business” ranking, with Ohio leading the way in this category.
Last year, the state allocated $175 million to improve the development readiness of land, second only to California in scale.
Governor DeWine mentioned in a CNBC interview on Thursday, July 9th, that defense technology company Anduril selected a site near Columbus, Ohio early last year to build a large manufacturing base with an initial investment of up to $1 billion.
With excellent network connectivity and ample power to support high-end computing, Ohio already has 224 data centers, ranking among the top ten in the U.S. Additionally, the state is expecting one of the world’s largest data centers. This $4.2 billion facility with a capacity of 10 gigawatts (GW) is being built on a federal-owned site in Pike County, to the east of Cincinnati; the site was previously used for uranium enrichment for nuclear weapons in the U.S.
Ohio ranks first in the crucial category of “business costs,” where office and industrial space rents are among the lowest in the country. Insurance and utility costs are reasonable, and the incentives offered to businesses are among the most favorable in the U.S., as the state provided over $1 billion in tax exemptions last fiscal year.
Cost of living is an issue. Although Ohio has a relatively low overall tax burden, property taxes are high, which has become a political vulnerability. However, Governor DeWine pointed out that the state legislature has recently taken action, and the government will continue to address this issue.
“You won’t hear people complain about our income tax or other taxes,” he said. “Our income tax rate is very low, and it will continue to decrease. The only issue is property taxes because school funding largely depends on property tax revenue. But we are working to address this issue.”
Ohio ranks ninth in the “cost of living” category, with housing costs being among the most affordable in the U.S.
Ohio also ranks in the top ten in other categories: economy (ninth), technology and innovation (tenth), and access to capital (ninth).
Despite making significant progress, there is still a lot of work to be done in Ohio. The state’s funding for higher education lags behind, contributing to its most significant competitive disadvantage in the “workforce” key indicator – where Ohio ranks only 35th. According to data from the Census Bureau, only about 19% of adults in Ohio have a bachelor’s degree or higher, placing the state’s workforce education level at the bottom nationwide. Furthermore, there is a shortage of skilled technical talent staying or moving into the state.
To address the state’s talent skills gap, JobsOhio announced in June that it would invest $300 million over the next ten years to recruit and train skilled technical workers. Over the next decade, the state will need 540,000 professionals working in the fields of science, technology, engineering, and mathematics (STEM).
CNBC’s research evaluated the 50 states in the U.S. across 10 competitiveness categories for a total score of 2,500 points. Ohio clinched the top spot this year with a score of 1,623 points. Here are the evaluation categories and corresponding scores for this year (including the weighting at the time of analysis):
Infrastructure: 440 points (17.6%); Economy: 415 points (16.6 %); Workforce: 345 points (13.8%); Quality of Life: 290 points (11.6%); Business Costs: 285 points (11.4%); Technology and Innovation: 245 points (9.8%); Business Friendliness: 225 points (9%); Access to Capital: 105 points (4.2%); Education: 100 points (4%); Cost of Living: 50 points (2%).
North Carolina, which held the top spot last year, ranks second this year. The state has consistently performed well in the CNBC rankings. While it has been among the top states for the past six years (ranking first or second), it missed out on retaining the top spot in 2026 by just nine points.
This year, North Carolina leads in the “economy” category, with strong employment and economic growth momentum. However, this growth has also driven up costs. North Carolina ranks 35th in “cost of living”; additionally, due to inadequate worker rights protections and an increase in crime rates, the state ranks 34th in “quality of life.”
Virginia ranks third, second in “infrastructure” (behind Ohio) and fifth in “education.” However, federal budget cuts and reductions in personnel have dragged down the state’s economic ranking, dropping it from 14th last year to 23rd in 2026.
Texas ranks fourth, leading in the “workforce” category, and second in both “economy” and “access to capital.” However, high crime rates, low healthcare levels, and lack of inclusivity place this “Lone Star State” at 49th in “quality of life.”
Arkansas made the most significant progress this year. The state, with a concentration of major corporations like Walmart, Tyson Foods, and J.B. Hunt Transport Services in the northwest, has attracted a large influx of labor. The overall ranking of this “Natural State” rose by 13 positions to 28th, with a notable jump of 23 places to 13th in the “workforce” category.
Where there are best-performing states, there are inevitably those with the poorest performance.
West Virginia ranks 46th, with 48th in “economy” and 49th in “access to capital.” However, this “Mountain State” ranks first in “cost of living.”
Louisiana ranks 47th. The state’s performance in economy (47th), business friendliness (48th), and quality of life (46th) are all not ideal.
Rhode Island ranks 48th. The state ranks last in economy, access to capital, and 46th in infrastructure. Despite these rankings, it remains the fifth most expensive state to live in the U.S.
Alaska ranks 49th. The state ranks last in education and access to capital, and 49th in infrastructure.
Hawaii ranks last this year. The state ranks last in infrastructure and business costs, and 47th in cost of living. Despite being renowned for its lifestyle, Hawaii’s ranking in 2026 has been affected by its highest childcare costs in the U.S., leading to a drop to 6th in quality of life.