This week’s U.S. News & World Report Best States rankings placed Washington ninth overall but read past the headlines, dig into the data and the rot in Washington’s economy becomes apparent.
The US News ranking is primarily weighted (87%) in factors that affect quality of life, not a measure of business health, and since business drives the economy, Washington’s position on the chart cannot be considered a true measure amid the ongoing departure of high earners, entrepreneurs, and business leaders.
U.S. News evaluates states on how they serve residents across eight categories weighted by public surveys: education (15.79%), health care (15.51%), economy (only 12.88%), infrastructure, opportunity, fiscal stability, natural environment, and crime. Washington scores well in education (8th), infrastructure (8th), and natural environment (7th). Its economy ranking is a mediocre 19th.
Each category, however, is weighted to give the best possible ranking. As an example, Education. Washington is ranked 2nd in higher education but 31st in K-12, where the future leaders of the state are currently sitting.
Within economy, the “business environment” subcategory ranks 11th, buoyed by legacy strengths such as patents, venture capital, and large headquarters, but employment ranks a dismal 40th. The metrics also rely heavily on lagging data. The “low tax burden” measure, for example, uses 2023 state and local tax revenues as a share of personal income, before the 2025 B&O rate hikes, surcharges, and the new 9.9% income tax. Business creation data runs only through mid-2025. Recent policy changes and the resulting decisions by firms simply are not fully reflected.
It’s obvious when you consider Washington ranking in short-term fiscal stability – 50. Dead last.
Real-time evidence tells a different story. The Association of Washington Business spring 2026 employer survey found that 24% of respondents are considering relocating their businesses out of state, nearly triple the level from winter 2025. Fully 55% of business leaders are considering moving their personal residences. High-profile exits and expansions elsewhere continue. Executives and founders have relocated, companies are shifting operations to lower-tax states, and office vacancy rates remain elevated.
These departures are not abstract. High earners and business owners drive investment, job creation, and a disproportionate share of tax revenue. When they leave, the tax base erodes, services suffer, and remaining residents face higher burdens. A ranking that prioritizes resident quality-of-life indicators while under weighting current business costs, regulatory friction, and net firm migration creates a false sense of security. Strong schools and scenic views do not pay the bills if the economic engine stalls.
Other measures highlight the gap. CNBC’s Top States for Business ranks Washington 11th overall but near the bottom on cost of doing business and business friendliness (40th). The U.S. News composite simply does not emphasize the factors that determine whether companies stay, grow, or go.
Washington’s strengths in innovation and human capital are real. But they were built under a more competitive tax and regulatory climate. Continuing to raise costs while celebrating lagging, resident-focused rankings ignore the clear signal from employers. The exodus of high earners and business leaders is already underway. Without course correction, the “top 10” placement will prove temporary, and the costs will fall on everyone who remains.
Policymakers should treat the data lag and the survey evidence as a warning, not a victory lap. A state that drives away its economic engines cannot sustain high rankings, or high living standards, for long.
