New Jersey dropped to 31st overall in CNBC’s 2026 Top States for Business rankings, announced Thursday morning, while also be dinged with a 50th ranking for business friendliness.
New Jersey continued to perform well in weighted areas like quality of life (3rd) and education, rising to second overall after finishing seventh last year.
But the Garden State finished lower or the same in nine other metrics. Last year, New Jersey was 49th in business friendliness.
In a statement, NJBIA President and CEO Michele Siekerka said it was discouraging to “see new anti-business policies that continue to change the rules of engagement,” particularly with New Jersey’s declining rankings for business.
“Obviously, we didn’t arrive here in the short term,” Siekerka said. “New Jersey employers have endured decades of anti-business policies, and our state has a reputation for not being business friendly.
“Yet despite this, we continue to see trends that should serve as a wakeup call: an alarming number of job creators deciding to move, grow or invest outside of New Jersey, and WARN Act notices that have totaled more than 9,000 jobs this year.
“We must build a competitive business climate founded on predictability, reliability and consistency, rather than 180-degree policy shifts, to encourage long-term investment from our job creators,” she said.
In 2023, New Jersey had risen to No. 19 on the list, climbing 23 places from the previous year. Last year, the Garden State had fallen to 30th on the list.
New Jersey also finished lower against neighboring states of New York (No. 18) and Pennsylvania (No. 13), which continues on a path of lowering its top corporate tax rate to 4.99%, while the Garden State has the highest top corporate tax rate in the nation, by far, at 11.5%.
Here’s where New Jersey placed in each weighted metric by CNBC, followed by its 2025 ranking in parentheses:
- Education: 2 (7)
- Quality of Life: 3 (3)
- Access to Capital: 13 (11)
- Workforce: 19 (14)
- Technology & Innovation: 20 (16)
- Economy: 31 (31)
- Cost of Doing Business: 38 (38)
- Cost of Living: 39 (37)
- Infrastructure: 41 (21)
- Business Friendliness: 50 (49)
Siekerka warned that recent anti-business policies, like the Corporate Transit Fee, wholesale changes to the ABC test used to determine an employee versus an independent contractor, the Climate Superfund bill and a new Medicaid tax are exactly why New Jersey continues to struggle with business friendliness and in other categories.
“So, we are at an inflection point and must ask ourselves: What is next for our job creators?” she said
“Governor Sherrill has set out on an aggressive ‘Saving You Time and Money’ agenda with the intent of driving down the costs of doing business. This is a great initiative that we wholly embrace and appreciate.
“But at the same time, we just received another budget and new policies that include new tax increases and costs of doing business.
“New Jersey 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,” Siekerka said.
The annual CNBC Top States for Business report ranks states in 10 different categories, involving 135 metrics.
The states ranking highest in CNBC’s Top 10 for 2026 includes:
- Ohio
- North Carolina
- Virginia
- Texas
- Minnesota
- Michigan
- Georgia
- Florida
- Tennessee
- Indiana
The states ranking the lowest in 2025 includes:
- New Mexico
- Oregon
- Mississippi
- South Dakota
- Montana
- West Virginia
- Louisiana
- Rhode Island
- Alaska
- Hawaii
To see the full CNBC Top 10 States for Business report, click here.
