Vermont tops CNBC quality-of-life ranking for sixth straight year

CNBC ranked Vermont as America’s best state to live in for 2026, extending its run at No. 1 to six years. For retail investors, the list is a useful read on where companies may find it easier to recruit and keep workers as office location decisions become more tied to quality of life.

The ranking is part of CNBC’s 20th annual America’s Top States for Business study. CNBC said quality of life now counts for 11.6% of a state’s total score, up from about 10% last year, as return-to-office policies and a smaller remote-work pool push employers to think harder about where employees will actually want to live.

CNBC said its quality-of-life score uses data on crime, air quality and health care, plus childcare cost and availability, state inclusiveness laws and reproductive rights. Those inputs matter for businesses because a state’s labor market is not just about wages. It is also about whether workers can find doctors, childcare, clean air and basic legal protections.

Vermont holds the top spot

Vermont scored 233 out of 290 points, earning an A+ in CNBC’s quality-of-life category. CNBC cited the state’s strengths in reproductive rights, health, crime, inclusiveness and air quality, while naming childcare as a weakness.

Health data helped Vermont’s case. The United Health Foundation found that 54% of Vermonters surveyed in 2024 said their health was good or excellent, the highest share of any state, according to CNBC. Crime is also low, and CNBC said the state has broad protections for residents’ rights.

Vermont’s weak spot is housing insecurity. CNBC reported that the state ranks No. 47 for homelessness, according to the United Health Foundation. A state count found more than 3,000 unhoused people as of January 2025 in a state of 644,000 residents. CNBC said Gov. Phil Scott signed a bill passed by the Democratic-led legislature that allocates about $83 million to create more shelter options and reduce reliance on unused hotel rooms.

The rest of the top tier

Maine ranked second with 232 points and an A+ grade. CNBC highlighted its lowest-in-the-nation violent crime rate, at 100 incidents per 100,000 people in 2024, along with clean air and inclusive laws. Health was its listed weakness, including low rankings for drug deaths and frequent mental distress from the United Health Foundation.

New Jersey placed third with 223 points and an A+ grade. CNBC pointed to strong health outcomes, reproductive rights, worker protections and low crime. Air quality was the state’s weakness.

Minnesota followed with 210 points and an A grade, helped by reproductive rights, inclusiveness and health. Connecticut scored 205 points, with CNBC citing crime, health and worker protections as strengths, while flagging poor air quality.

• Hawaii: 191 points, with strengths in crime, air quality and inclusiveness, and weaknesses in childcare and health.
• New Hampshire: 189 points, helped by low crime, childcare and inclusiveness, with health and worker protections listed as weaknesses.
• Virginia: 189 points, with strengths in crime, air quality and health, and childcare as its weakness.
• North Dakota: 186 points, led by childcare, health, air quality and crime, with weaknesses in worker protections and reproductive rights.
• Massachusetts and Nebraska: both scored 184 points. CNBC cited Massachusetts for health, worker protections, inclusiveness and reproductive rights, while Nebraska stood out for health and air quality.

The broader message from CNBC’s ranking is that state competitiveness is no longer limited to taxes, infrastructure and incentives. As companies compete for workers, the lived experience of a state is becoming part of the business case.

This story draws on original reporting from CNBC.