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Thursday, July 9, 2026
CNBC: With Sylvia Luke Under Investigation, Hawaii becomes Worst State for Business in 2026
By Video @ 9:12 AM :: 2995 Views :: Ethics, Economy, Hawaii Statistics, Small Business

" ... in Hawaii the biggest champion of early learning, Lieutenant Governor Sylvia Luke, is now on leave confirming that she is the target of an unrelated criminal investigation ..." -- CNBC

Hawaii is America’s Worst State for Business in 2026

Hawaii finishes dead last in CNBC’s annual America’s Top States for Business rankings in 2026. CNBC’s Scott Cohn has the details.

Hawaii Score and Ranking

CATEGORY  2026 SCORE  2026 RANK  2025 RANK  2026 GRADE 
INFRASTRUCTURE 102 50 48 F
ECONOMY 214 24 39 C
WORKFORCE 148 43 29 F
QUALITY OF LIFE 191 6 6 B+
COST OF DOING BUSINESS 35 50 50 F
TECHNOLOGY & INNOVATION 62 49 48 F
BUSINESS FRIENDLINESS 71 45 44 D-
ACCESS TO CAPITAL 25 44 48 F
EDUCATION 45 34 42 C-
COST OF LIVING 14 47 49 D
OVERALL 907 50 49  

 

Economic Profile

Governor: Josh Green, Democrat

Population: 1,432,820

GDP growth (Q1 2026): 2.40%

Unemployment rate (May 2026): 2.50%

Top corporate tax rate: 6.40%

Top individual income tax rate: 11.00%

Gasoline tax: 36.9 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, American Petroleum Institute (including 18.40 cent/gallon federal tax), Moody’s Investor Service, S&P Global Market Intelligence

  *   *   *   *   *

CNBC: Best states to live in 2026:

Hawaii spent many years at or near the top of this list, with low crime, a pristine environment, and welcoming state laws. Then, in 2022, we began factoring in the cost and availability of childcare. The U.S. Chamber of Commerce Foundation calls it “more than a family issue — it’s an economic imperative.” The state has been trying since 2023 to address the need with its “Ready Keiki” program (Keiki means child in Hawaiian). In October, the state celebrated the opening of the 100th pre-school classroom under the program, in Kailua. But the need is still enormous — and so is the cost, the highest in the nation at 18% of median income, according to Child Care Aware. 

2026 Quality of Life score: 191 out of 290 points (Top States grade: B+) 

Strengths: Crime, Air Quality, Inclusiveness 

Weaknesses: Childcare, Health 

KITV: Hawaii finishes in last in CNBC yearly ranking in top states for business rankings in 2026 | News | kitv.com

HNN: Hawaii listed as worst state to do business by CNBC

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