Minnesota Ranks Fifth in CNBC’s 2026 Top States for Business

(KNSI) – Minnesota is rounding out the top five in CNBC’s America’s Top States for Business for 2026.

The media company scored all 50 states on 138 metrics in 10 broad categories of competitiveness, with the North Star State coming in at number five overall. The study identifies the factors companies consider when choosing where to open, expand, and create jobs.

Infrastructure is the top-weighted category, as companies look for locations close to transportation hubs, utilities, access to fresh water, and abundant energy to power things like advanced manufacturing and data centers. And they want it without red tape. For the first time in 2026, the report is factoring in ease of permitting.

The Land of 10,000 Lakes received high marks for quality of life at number four, with outstanding healthcare, strong worker protections, and inclusive state laws. The state was also in the top 10 in the nation for infrastructure, ranking seventh, and for economy, ranking eighth.

Minnesota was in the middle of the pack, ranking number 14 for technology and innovation and number 16 for business-friendly climate. But the report shows the state can be crushingly expensive, with high taxes and living costs. Where the state falls short, according to the report, is on workforce and cost of doing business, coming in at 27th and 31st, respectively.

The top state in the report was Ohio, followed by North Carolina, Virginia, Texas and Minnesota. The bottom five states were West Virginia, Louisiana, Rhode Island, Alaska and Hawaii.

Minnesota Economic Profile:

Governor: Tim Walz, Democrat

Population: 5,830,405

GDP growth (Q1 2026): 0.30%

Unemployment rate (May 2026): 4.40%

Top corporate tax rate: 9.80%

Top individual income tax rate: 9.85%

Gasoline tax: 51.10 cents/gallon

Bond rating (Moody’s/S&P): Aaa, Stable/AAA, 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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