Texas Retains No. 1 Business Climate Ranking

Texas once again ranked as the best state for business in the United States, according to Business Facilities' 2026 rankings. The recognition highlights the state's economic strength, infrastructure, and business-friendly environment.

Olivia Smith
July 31, 2026

Texas has been ranked the Best Business Climate in the United States for the fourth consecutive year, according to the 2026 Annual Rankings Report published by Business Facilities, one of the country’s leading publications covering corporate site selection, business relocation, and economic development.

The annual ranking evaluates states based on key indicators including economic strength, tax and regulatory policies, infrastructure, workforce quality, and economic development performance, taking into account business investment announcements and job creation over the previous year.

“Texas is where new ideas flourish, jobs grow, and Texans prosper,” Governor Greg Abbott said after the rankings were announced.

“Our state offers businesses unmatched advantages: a business climate that welcomes investment, no corporate or personal income tax, a highly skilled workforce, easy access to global markets, and a reasonable regulatory environment,” Abbott added.

Sustained Economic Leadership

The latest recognition is part of a broader pattern of economic success.

According to Business Facilities, Texas continues to offer a combination of advantages that few states can match. Today, the Lone Star State is home to 57 Fortune 500 headquarters—more than any other state—as well as hundreds of publicly traded companies and more than 3.5 million small businesses.

Since Governor Abbott took office in 2015, Texas has added more than 2.6 million jobs, reinforcing its role as one of the nation’s primary economic engines.

Anne Cosgrove, Editorial Director of Business Facilities, said the state’s long-term success reflects a consistent economic development strategy.

“For legacy and rising industries, Texas provides businesses with the resources required to grow and evolve in today’s economic landscape.”

Cosgrove also credited the collaboration between the Governor’s Office, the Texas Economic Development & Tourism Office, the Texas Economic Development Corporation (TxEDC), and communities across the state for helping drive long-term economic growth.

Texas Continues to Lead in Business Investment

Texas’ No. 1 ranking in Business Facilities is backed by another widely recognized measure of economic development.

According to Site Selection Magazine, a leading publication covering corporate real estate and site selection, Texas attracted 1,400 economic development projects in 2025—more than double the 680 projects secured by second-place Illinois.

That performance earned Texas the Governor’s Cup for the 14th consecutive year, recognizing the state with the highest number of corporate relocation and business expansion projects in the country.

Data released by the Governor’s Office show those projects generated more than 42,000 new jobs and approximately $75 billion in capital investment.

“There is no state that is better designed or better positioned economically now and going forward,” Abbott said following that announcement.

Top 10 Best Business Climate States

According to the 2026 Business Facilities rankings, the top states for business climate are:

Texas
Florida
North Carolina
Virginia
Tennessee
Georgia
Indiana
Arizona
South Carolina
Ohio

The publication notes that every relocation or expansion project evaluates locations differently, but these ten states consistently offer competitive advantages across a broad range of industries.

What It Means for Trucking and Logistics

For the trucking and logistics industry, the rankings represent far more than another economic accolade. Every new manufacturing facility, distribution center, industrial park, or data center increases demand for freight transportation, warehousing, and supply chain services.

Texas already serves as one of North America’s largest freight hubs, thanks to its extensive interstate highway network, Gulf Coast ports, international border crossings with Mexico, major rail corridors, and cargo airports. As investment continues to flow into the state, carriers, owner-operators, logistics providers, and supply chain companies are expected to benefit from rising freight volumes and expanding business opportunities.