Texas, January 27, 2026
Texas has been ranked third in WalletHub’s list of the best states to start a business, praised for its strong business environment and growing workforce. The Lone Star State achieved an overall score of 54.07, driven largely by top marks in the business environment category. Despite its accolades, Texas faces challenges in infrastructure and quality of life that could impact its appeal to entrepreneurs.
Texas Secures Third Place in WalletHub’s 2026 Best States for Business
Texas has been ranked third in WalletHub’s 2026 list of the best states to start a business, highlighting its strong business environment and growing workforce.
The Lone Star State achieved an overall score of 54.07, driven largely by its top ranking in the business environment category. Texas also secured the 11th position for access to resources and 34th for business costs, indicating both advantages and challenges for entrepreneurs.
WalletHub analyst Chip Lupo emphasized the importance of location in determining a new business’s success, noting that around half of all new businesses don’t survive five years. The best states offer low corporate tax rates, strong economies, an abundance of reliable workers, easy access to financing, and affordable real estate.
Texas’s Ranking in Business Landscape
In comparison, Florida topped the list, followed by Utah, with Texas securing the third spot. Other states in the top five include Oklahoma and Idaho. These rankings are based on a comprehensive analysis of 25 relevant metrics, such as labor costs, office space affordability, financial accessibility, and the number of startups per capita.
Historically, Texas has maintained a strong position in business rankings. For instance, in 2025, an analysis placed Texas second, just behind North Carolina. Additionally, in 2023, the state was named the nation’s best business climate in a triennial survey conducted by Development Counsellors International.
Challenges in Texas’s Business Environment
Despite these accolades, Texas faces challenges in areas like infrastructure and quality of life, which can impact its overall business climate. Addressing these issues may further enhance the state’s appeal to entrepreneurs and investors.
Key Features of Texas’s Business Climate
| Feature | Details |
|---|---|
| Business Environment | Ranked 1st in WalletHub’s 2026 list |
| Access to Resources | Ranked 11th in WalletHub’s 2026 list |
| Business Costs | Ranked 34th in WalletHub’s 2026 list |
| Corporate Tax Rates | No corporate income tax |
| Workforce | Young, skilled, and growing |
| Infrastructure | Robust and extensive |
Conclusion
As shown by WalletHub’s recent rankings, Texas remains a prime location for entrepreneurs, offering a thriving business environment with numerous advantages. The combination of no corporate tax, a skilled workforce, and resource availability positions the state favorably in the national landscape. However, addressing the challenges related to infrastructure could further solidify its standing. Texans are encouraged to support local business initiatives and stay engaged in fostering a prosperous economic future.
FAQ
What is WalletHub’s 2026 ranking of the best states to start a business?
According to WalletHub’s 2026 list, the top five states to start a business are:
- Florida
- Utah
- Texas
- Oklahoma
- Idaho
What factors contribute to Texas’s high ranking in business climate surveys?
Texas’s strong business climate is attributed to factors such as a pro-growth economic environment, no corporate or personal income taxes, a young and skilled workforce, and robust infrastructure.
How does Texas’s ranking compare to previous years?
In 2025, an analysis ranked Texas second in its “Top States for Business” analysis. In 2023, the state was named the nation’s best business climate in a triennial survey conducted by Development Counsellors International.
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