New Jersey dropped to 31st total in CNBC’s 2026 Top States for Business rankings, introduced Thursday morning, whereas even be dinged with a 50th rating for enterprise friendliness.
New Jersey continued to carry out nicely in weighted areas like high quality of life (third) and schooling, rising to second total after ending seventh final yr.
But the Garden State completed decrease or the identical in 9 different metrics. Last yr, New Jersey was 49th in enterprise friendliness.
In an announcement, NJBIA President and CEO Michele Siekerka mentioned it was discouraging to “see new anti-business policies that continue to change the rules of engagement,” notably with New Jersey’s declining rankings for enterprise.
“Obviously, we didn’t arrive here in the short term,” Siekerka mentioned. “New Jersey employers have endured a long time of anti-business insurance policies, and our state has a repute for not being enterprise pleasant.
“Yet regardless of this, we proceed to see trends that should serve as a wakeup call: an alarming variety of job creators deciding to transfer, develop or make investments exterior of New Jersey, and WARN Act notices which have totaled greater than 9,000 jobs this yr.
“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 mentioned.
In 2023, New Jersey had risen to No. 19 on the record, climbing 23 locations from the earlier yr. Last yr, the Garden State had fallen to 30th on the record.
New Jersey additionally completed decrease in opposition to neighboring states of New York (No. 18) and Pennsylvania (No. 13), which continues on a path of decreasing its prime company tax fee to 4.99%, whereas the Garden State has the very best prime company tax fee in the nation, by far, at 11.5%.
Here’s the place New Jersey positioned in every weighted metric by CNBC, adopted by its 2025 rating 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 current anti-business insurance policies, just like the Corporate Transit Fee, wholesale adjustments to the ABC check used to decide an worker versus an impartial contractor, the Climate Superfund invoice and a brand new Medicaid tax are precisely why New Jersey continues to battle with enterprise friendliness and in different classes.
“So, we are at an inflection point and must ask ourselves: What is next for our job creators?” she mentioned
“Governor Sherrill has set out on an aggressive ‘Saving You Time and Money’ agenda with the intent of driving down the prices of doing enterprise. This is a superb initiative that we wholly embrace and respect.
“But on the similar time, we simply acquired one other finances and new insurance policies that embody new tax will increase and prices of doing enterprise.
“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 mentioned.
The annual CNBC Top States for Business report ranks states in 10 totally different classes, involving 135 metrics.
The states rating highest in CNBC’s Top 10 for 2026 consists of:
- Ohio
- North Carolina
- Virginia
- Texas
- Minnesota
- Michigan
- Georgia
- Florida
- Tennessee
- Indiana
The states rating the bottom in 2025 consists of:
- New Mexico
- Oregon
- Mississippi
- South Dakota
- Montana
- West Virginia
- Louisiana
- Rhode Island
- Alaska
- Hawaii
To see the total CNBC Top 10 States for Business report, click on here.