Reviewed by Laurie Spicer · Last reviewed: October 19, 2026
This article is for general information only and does not constitute legal, tax, or HR advice. Consult a qualified professional for your situation.
How do you judge the best states for business when you are planning to expand to the US? Each ranking measures something different, from workforce and infrastructure to tax and the views of chief executives. No single list gives the full picture.
This guide brings together three of the most widely cited rankings for 2026, then explains what they mean for international companies. Remember that the best state for your business depends on where your customers, talent and partners are.
Table of Contents
CNBC: America’s Top States for Business 2026
CNBC’s America’s Top States for Business 2026 scores all 50 states across ten categories, including workforce, infrastructure, economy, cost of doing business and quality of life. Ohio took first place for the first time in July 2026.
The top five were:
- Ohio
- North Carolina
- Virginia
- Texas
- Minnesota
Chief Executive: Best States for Business 2026
Chief Executive’s 2026 ranking is based on a survey of more than 650 US chief executives, presidents and business owners. It measures how business leaders see each state, so it reflects reputation as much as hard data.
The top five were Texas, Florida, Tennessee, North Carolina and Georgia. Illinois, New York and California came last. Low taxes, lighter regulation and a business-friendly reputation drive these results.
Tax Foundation: 2026 State Tax Competitiveness Index
The Tax Foundation’s 2026 State Tax Competitiveness Index ranks states on how well their tax systems are structured, not on how much tax businesses pay overall. Published in October 2025, it looks at corporate, individual, sales, property and unemployment insurance taxes.
The top ten were Wyoming, South Dakota, New Hampshire, Alaska, Florida, Montana, Texas, Tennessee, Idaho and Indiana. California, New Jersey and New York ranked lowest. Foothold does not give tax advice, so talk to a qualified tax adviser about how any state’s taxes affect you.
What the rankings mean for international companies
The rankings agree on some states and disagree on others. Texas, North Carolina and Florida score well across several lists, while large coastal states rank low on tax and cost but still lead on customers, capital and talent. Use the rankings as a starting point, not a decision.
- Where you operate matters most. You owe employment and most tax obligations in the states where your people work and you do business.
- Where you incorporate is a separate choice. Many international companies form a Delaware corporation and register in the states where they hire. See our guide to the best state to form a US company.
- Regions suit different industries. Our guide to East Coast, West Coast or Middle America compares where each sector does best.
- You can hire before you choose. An Employer of Record can employ your first US staff in most states without a US entity.
For the full route, read our step-by-step guide to entering the US market.
Choosing your state with Foothold America
Rankings change every year, but your customers, talent and growth plans should drive your choice. Foothold America helps UK and European companies decide where to hire, where to incorporate and how to stay compliant in every state.
Speak to our specialist advisers to talk through the best state for your business.
Frequently Asked Questions
Quick answers to the questions international companies ask most about choosing a US state.
What is the best state for business in the US in 2026?
It depends on the ranking. CNBC’s 2026 study ranked Ohio first, followed by North Carolina and Virginia. Chief Executive’s 2026 CEO survey put Texas first, and the Tax Foundation’s 2026 index ranked Wyoming first for tax structure. Each list measures something different, so match the ranking to what matters most for your business.
Which US states have the best tax climate for businesses?
The Tax Foundation’s 2026 State Tax Competitiveness Index ranked Wyoming, South Dakota, New Hampshire, Alaska and Florida as the top five. These states score well for how their tax systems are structured. California, New Jersey and New York ranked lowest. Take advice from a tax adviser before choosing a state for tax reasons.
Should international companies choose the top-ranked state?
Not automatically. Rankings are a useful starting point, but your customers, talent and industry matter more. A low-ranked state such as New York or California may still be the right base if your buyers are there. Most companies also incorporate in one state and register in the states where they actually hire.
Is the best state to incorporate the same as the best state to operate?
No. Where you incorporate sets your company’s legal home, and many international companies choose Delaware. Where you operate is where your employees work and you do business, and you must register and comply there too. Choose your operating state based on customers and talent, not just rankings. One entity can be registered in several states.
Can I hire in any US state without setting up a company there?
Yes, through an Employer of Record. The EOR employs your US staff in their home state and handles payroll, benefits and state compliance. This lets you hire where the talent is, even before you decide where to set up your own entity or which state will become your main base.
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