Trenton, NJ – New Jersey slipped one spot to 31st in CNBC’s 2026 Top States for Business rankings, reflecting continued challenges in infrastructure, business climate, and the cost of doing business despite strong performances in education and quality of life.
The state’s overall score of 1,264 placed it just below last year’s 30th-place finish. CNBC evaluates all 50 states across ten categories that measure economic competitiveness, workforce strength, infrastructure, taxes, education, and quality of life.
Infrastructure and business climate drag down ranking
The biggest setback for New Jersey came in infrastructure, where the state dropped dramatically to 41st after ranking 21st a year ago. CNBC assigned the category a grade of D, making it one of the report’s weakest areas for the Garden State.
New Jersey also ranked last in the nation for business friendliness, placing 50th with an F grade after finishing 49th in 2025. The state remained near the bottom in both cost of doing business, ranking 38th, and cost of living, ranking 39th.
The economy category showed little movement, with New Jersey holding steady at 31st nationwide.
Education and quality of life remain strengths
Despite the lower overall ranking, New Jersey continued to post some of the nation’s strongest results in several key areas. The state ranked second in education, improving from seventh place last year, and earned an A grade.
Quality of life remained one of New Jersey’s top-performing categories, ranking third nationally for the second consecutive year with an A+ grade.
The state also performed well in access to capital, ranking 13th, while workforce quality placed 19th and technology and innovation ranked 20th.
Economic profile
According to CNBC’s economic profile, New Jersey has an estimated population of 9.55 million residents and recorded 0.8% gross domestic product growth during the first quarter. The state’s unemployment rate stood at 4.7% in May.
The report lists New Jersey’s top corporate tax rate at 11.5% and its top individual income tax rate at 10.75%. Motorists pay a combined gasoline tax of 67.55 cents per gallon, including the federal tax.
CNBC’s annual rankings are based on publicly available economic and demographic data compiled from sources including the U.S. Census Bureau, U.S. Bureau of Economic Analysis, U.S. Bureau of Labor Statistics, the Federation of Tax Administrators, the American Petroleum Institute, Moody’s Investors Service, and S&P Global Market Intelligence.
