Texas earns top national business climate ranking again as job growth and investment continue to expand

Austin, Texas – Texas has once again earned national recognition for its business environment, securing the top spot in Business Facilities magazine’s 2026 Annual Rankings Report. The state was named the Best Business Climate in the nation for the fourth consecutive year, a distinction state leaders say reflects continued economic growth, business investment, and job creation.

Governor Greg Abbott celebrated the announcement, highlighting what he described as the state’s strong economic foundation and continued appeal to companies looking to expand or relocate.

“Texas is where new ideas flourish, jobs grow, and Texans prosper,” said Governor Abbott. “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. I thank Business Facilities magazine for the recognition of Texas as the best business climate in the nation, and I look forward to even greater success in the years ahead.”

The annual ranking evaluates states using several economic and business-related measures. These include overall economic strength, tax and regulatory policies, workforce quality, infrastructure, and recent economic development activity. The report also considers business investment announcements and the number of new jobs created over the previous year.

Texas continues attracting businesses and investment

Business Facilities magazine pointed to Texas as a place where both long-established companies and emerging industries can continue growing in an increasingly competitive economy.

“For legacy and rising industries, Texas provides business the resources required to grow and evolve in today’s economic landscape,” said Business Facilities Editorial Director Anne Cosgrove.

Texas has consistently ranked among the nation’s leaders in attracting companies that bring new jobs and investment. State officials noted that Texas is currently home to 57 Fortune 500 corporate headquarters, more than any other state in the country.

Beyond its large corporations, Texas also has a thriving business community made up of hundreds of publicly traded companies and more than 3.5 million small businesses operating across the state.

According to state leaders, those businesses continue to benefit from several competitive advantages, including the absence of both corporate and personal state income taxes, access to a skilled workforce, strong transportation connections to domestic and international markets, and a regulatory environment designed to encourage growth.

The state has also recorded significant employment gains over the past decade. Since Governor Abbott took office in 2015, Texas has added more than 2.6 million jobs, reflecting continued expansion across multiple industries.

Receiving the Best Business Climate designation for a fourth straight year further reinforces Texas’ reputation as one of the country’s leading destinations for employers, entrepreneurs, and investors. State officials say they expect continued business expansion, additional capital investment, and ongoing job creation as companies continue choosing Texas as a place to launch, relocate, and grow their operations.