Top States for Business

17. California

Ihor Chopovskyi | Istock | Getty Images

California Score and Ranking

CATEGORY 2026 SCORE 2026 RANK 2025 RANK 2026 GRADE
INFRASTRUCTURE2262625C+
ECONOMY295312A
WORKFORCE2001720C+
QUALITY OF LIFE1472932C
COST OF DOING BUSINESS874640D-
TECHNOLOGY & INNOVATION18911A+
BUSINESS FRIENDLINESS604748F
ACCESS TO CAPITAL10411A+
EDUCATION532031C+
COST OF LIVING45050F
OVERALL13651722

Economic Profile

Governor: Gavin Newsom, Democrat

Population: 39,355,309

GDP growth (Q1 2026): 3.70%

Unemployment rate (May 2026): 5.30%

Top corporate tax rate: 8.84% (10.84% for financial institutions)

Top individual income tax rate: 13.30%

Gasoline tax: 91.52 cents/gallon

Bond rating (Moody's/S&P): Aa2, Stable/AA-, Stable

Economic profile sources: U.S. Census Bureau, U.S. Bureau of Economic Analysis, U.S. Bureau of Labor Statistics, Federation of Tax Administrators, American Petroleum Institute (including 18.40 cent/gallon federal tax), Moody's Investor Service, S&P Global Market Intelligence

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