Top States for Business

22. California

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California Score and Ranking 2025

CATEGORY 2025 SCORE 2025 RANK 2024 RANK 2025 GRADE
ECONOMY2711232B-
INFRASTRUCTURE2142515C+
WORKFORCE1912011C+
COST OF DOING BUSINESS1054045D+
BUSINESS FRIENDLINESS754847D
QUALITY OF LIFE128328C-
TECHNOLOGY & INNOVATION20215A+
EDUCATION513124C+
ACCESS TO CAPITAL6011A+
COST OF LIVING65050F
OVERALL13032223

Economic Profile

Governor: Gavin Newsom, Democrat

Population: 39,431,263

GDP growth (Q1 2025): -0.2%

Unemployment rate (May 2025): 5.3%

Top corporate tax rate: 8.84%

Top individual income tax rate: 13.3%

Gasoline tax: 88.33 cents/gallon

Bond rating (Moody's/S&P): Aa2, Stable/AA-, Stable

Economic profile sources: U.S. Census Bureau, U.S. Bureau of Economic Analysis, U.S. Bureau of Labor Statistics, Federation of Tax Administrators, Energy Information Administration (including 18.40 cent/gallon federal tax), Moody's Investor Service, S&P Global Market Intelligence

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