CNBC released its annual rankings of America’s Top States for Business in 2026 last month. Virginia ranked third in the list of 50 states across 10 broad categories of competitiveness, inching up from fourth place in the rankings last year. Let’s understand which categories contributed most towards Virginia’s score and which ones have scope for improvement over the coming years.

Table 1: Virginia’s Ranking in America’s Top States for Business Over the Years

Source: CNBC

Top scoring categories: Infrastructure (Grade: A+), Education (Grade: A-), Technology & Innovation (Grade: A-)

This year, Infrastructure was the highest-weighted category in determining the top states for doing business in the United States. Virginia ranked second in terms of Infrastructure across all states in the country, which highlights the results of investments made over the years. Its permitting process for new construction, transportation system, electrical grid, broadband connectivity, and large-scale computing power is what gives Virginia an edge in this category. Virginia’s strong education system continues to attract families looking to settle and businesses looking to establish their operations. Moreover, Virginia’s investments in technology and innovation have also contributed positively to its ranking, and this category’s ranking went up from 8th in the country last year to 6th this year.

Medium scoring categories: Quality of Life (Grade: B+), Workforce (Grade: B-), Access to Capital (Grade: B+), Business Friendliness (Grade: B)

The Quality of Life component for Virginia saw slight improvement, going from ranking 8th last year to ranking 7th across the country this year. This covers improvements made in terms of crime rates, environmental quality, healthcare, childcare options, worker protections, inclusivity, and voting rights. The Workforce category saw an improvement in its ranking, going from 14th last year to 10th this year. Virginia’s ability to attract talent at all levels, including skilled workers, has played in its favor. Access to capital, although one of the smallest categories of the total ranking score, considers how easy it is for companies to secure financing through various channels such as venture capital investments, traditional bank lending, as well as state-backed programs. Virginia’s business friendliness, in the form of its attractive legal and regulatory requirements along with opportunities for growth and expansion, dropped slightly in its rankings, but still remains pretty high.

Low scoring categories: Cost of Living (Grade: B), Economy (Grade: C), Cost of Doing Business (Grade: C+)

Cost of Living was the lowest-weighted category this year. While Virginia’s ranking in this category improved from last year, it is essential to ensure price stability and affordability which impacts the decision-making process of families and businesses. Virginia’s ranking for Economy, the second-heaviest weighted category in the study, dropped significantly from 14th place to 23rd this year. This is mostly due to the workforce cuts over the last couple years in some of the major job sectors and the cooling labor market across the Commonwealth. While making long-term business decisions, companies will continue to prefer states that are business tax friendly and that provide incentives which reduce their expenses. While Virginia improved its ranking in this category this year, Cost of Doing Business remains its lowest ranking category.

Table 2: Virginia Ranking Across Categories in 2026

Source: CNBC

Infrastructure investments over the years helped improve Virginia’s rankings this year and kept it among the top five states for business across the United States. However, a weaker labor market and rising cost of living will require immediate attention. Continued efforts are required to make sustainable strides in various categories to improve Virginia’s standings in the list in the coming years.

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