Is Texas a top state for business? New reports find mixed results

by the numbers

When it comes to Texas being a top state for business, we guess the jury's out. Photo via Getty Images

Texas economic development boosters are crowing about a new top-in-the-nation ranking. But they’re probably frowning about a different business ranking that’s mediocre.

First, the good news.

Business Facilities magazine just named Texas the 2023 State of the Year in recognition of its business climate, economic development leadership, and “blockbuster” year for capital investment and job creation. It’s the fifth time that Business Facilities has crowned Texas as the top state.

“Texas moves at the speed of business,” Gov. Greg Abbott said in a news release. “As recognized by Business Facilities magazine, Texas leads the nation for corporate relocations, business expansions, and job creation.”

“With the best business climate in the nation, leading investments in education and workforce development, and our young, skilled, diverse, and growing workforce, Texas is poised to lead the nation in 2024,” the governor added.

Additionally, Texas again appears on WalletHub's annual list of "Best States to Start a Business" — but ranks lower than last year. The Lone Star State ranked No. 8 this year compared to last year's No. 3 spot. This ranking looked at business environment, access to resources, and business costs across 25 relevant metrics by analyzing data from U.S. Census Bureau, Bureau of Labor Statistics, and other resources.

Now, the not-so-good news.

Texas landed at No. 32 on Forbes Advisor’s new list of the best states to start a small business in 2024. The Lone Star State received especially low marks economy, workforce, and business climate, but fared better in two other categories: business costs and financial accessibility.

Topping the Forbes Advisor list was North Dakota, followed by Indiana, Arkansas, South Dakota, and North Carolina.

Texas recently was awarded three other No. 1 business climate rankings, though: Best Business Climate in the U.S. by Business Facilities in June, Best Business Climate in the U.S. by corporate executives in September, and Top Business Climate in the U.S. by Site Selection Magazine in November.

“In a state the size of Texas, business is not just finding a home in the metros. A laser focus by economic developers across the state to foster established businesses as well as innovative startups is paying off for communities of all sizes,” Anne Cosgrove, editorial director of Business Facilities, says in a news release.

The magazine covers corporate site selection and economic development.

Other contenders for 2023 State of the Year were:

  • Arizona
  • Florida
  • Georgia
  • Indiana
  • Missouri
  • Nevada
  • North Carolina
  • Tennessee
  • Utah
  • Virginia
So this is how the other half lives. Photo by Austin Distel on Unsplash

Here's the income it takes to live among the top 1 percent in Texas

isn't that rich?

Wondering how "the other half lives" is so outdated, especially when we we can easily peek into what life is like for the "one percent." A new report from SmartAsset reveals how much money you'll need to be considered the top one percent in Texas.

With two Houston suburbs landing among the richest cities in Texas in a recent report, it's obvious that the Lone Star State is dotted with pockets of wealth. But how much do you actually need in your pocket to have a top one percent income?

In Texas, an annual income of $641,400 will land you at the top, while $258,400 only gets you to the top five percent.

To come up with those numbers, SmartAsset analyzed 2019 data from IRS tax units and adjusted the figures to 2022 dollars using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the Bureau of Labor Statistics.

For comparison, "the average American household earns a median income of under $70,000," according to the study. And per the latest figures from the U. S. Census Bureau, the median household income in Texas (in 2021 dollars) is $67,321. That leaves plenty of us with a long way to go in our financial striving.

So now we know how we compare to our neighbors, but where does that put the affluent population of Texas in comparison with other states?

For starters, Texas claimed the 10th highest income required to reach top income levels.

The one percent income threshold is hardest to meet in Connecticut ($955,000), Massachusetts ($900,000), New Jersey ($825,965), New York ($817,796), and California ($805,519). Only these five states have thresholds that exceed $800,00, and it's a pretty steep drop down to Texas ($641,400) in 10th place.

The five states where it's easiest to attain one percent status (even though that doesn't seem like good news) are Kentucky ($447,300), Arkansas ($446,276), New Mexico ($418,970), Mississippi ($383,128), and West Virginia ($374,712).

The SmartAsset report also included average tax rates for top earners in each state. There was surprisingly little variance in the top 10 states, with Washington state having the lowest rate (25.02%) and Connecticut collecting the highest tax rate (27.77%).

Texas was in the middle of the pack with a tax rate of 25.71% levied on top one percent incomes.

The 10 states with the highest earnings required to be a one-percenter and their tax rates are:

  1. Connecticut ($955.3K, Tax rate 27.77%)
  2. Massachusetts ($896.9K, Tax rate 26.4%)
  3. New Jersey ($826K, Tax rate 27.36%)
  4. New York ($817.8K, Tax rate 27.48%)
  5. California ($805.5K, Tax rate 26.78%)
  6. Washington ($736.1K, Tax rate 25.02%)
  7. Colorado ($682.9K, Tax rate 25.24%)
  8. Florida ($678.8K, Tax rate 25.23%)
  9. Illinois ($666.2K, Tax rate 26.23%)
  10. Texas ($641.4K, Tax rate 25.71%)
If you're on your way to being a top earner and want to do a deeper dive on those numbers, you can view the full report on the SmartAsset website.

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This article originally ran on CultureMap.

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TMC launches new biotech partnership with Republic of Korea

international collaboration

Houston's Texas Medical Center has launched its new TMC Republic of Korea BioBridge.

The new partnership brings together the TMC with the Osong Medical Innovation Foundation, or KBIOHealth. The Biobridge aims to support the commercialization of Korean biotech and life science startups in the U.S., foster clinical research, and boost collaboration in the public, private and academic sectors.

Through the partnership, TMC will also develop a Global Innovators Launch Pad to foster U.S. market entry for international health care companies. Founders will be selected to participate in the 10-week program at the TMC Innovation Factory in Houston.

“Gene and cell therapies are driving biotech innovation, opening possibilities for treating diseases once thought untreatable," William McKeon, president and CEO of the Texas Medical Center, said in a news release. "Expanding biomanufacturing capacity is essential to delivering the next wave of these therapies, and partnerships with leading innovators will strengthen our efforts in Houston and internationally.”

McKeon officially signed the TMC Korea BioBridge Memorandum of Understanding with Myoung Su Lee, chairman of KBIOHealth, in South Korea in October.

"This collaboration marks a significant milestone for Korea’s biohealth ecosystem, creating a powerful bridge between Osong and Houston," Lee added in the release. "By combining KBIOHealth’s strength in research infrastructure and Korea’s biotech talent with TMC’s global network and accelerator platform, we aim to accelerate innovation and bring transformative solutions to patients worldwide.”

This is the seventh international strategic partnership for the TMC. It launched its first BioBridge with the Health Informatics Society of Australia in 2016. It launched its TMC Japan BioBridge, focused on advancing cancer treatments, last year. It also has BioBridge partnerships with the Netherlands, Ireland, Denmark and the United Kingdom.

Houston startup surge, job forecast, and more trending news to know

Trending News

Editor's note: 2026 is here, and we are heading into the new year with a surge in local startup activity and job growth in the local health care sector. As we look ahead to 2026, here are five trending news stories from InnovationMap, published at the close of the year:


1. New report shows surge in startup activity in Houston and across Texas

Photo by Rome Wilkerson on Unsplash

Houston and the rest of Texas are experiencing a boom in the creation of startups. One barometer of growth in startup activity: The Houston metro area saw a 92 percent rise from 2024 to 2025 in the number of account applications submitted to Bluevine, a banking platform for small businesses. Continue reading.

2. Houston poised to add 30,900 new jobs in 2026, forecast says

The health care sector will lead Houston job growth in 2026. Photo via Houston Methodist

Buoyed by the growing health care sector, the Houston metro area will add 30,900 jobs in 2026, according to a new forecast from the Greater Houston Partnership. The report predicts the Houston area’s health care sector will tack on 14,000 jobs in 2026, which would make it the No. 1 industry for local job growth. Continue reading.

3. UH receives $2.6M gift to support opioid addiction research and treatment

UH has received a new financial gift towards the Michael C. Gibson Addiction Research Program, which is developing a fentanyl vaccine. Photo via Unsplash.

The estate of Dr. William A. Gibson has granted the University of Houston a $2.6 million gift to support and expand its opioid addiction research, including the development of a fentanyl vaccine that could block the drug's ability to enter the brain. Continue reading.

4. These 50+ Houston scientists rank among world’s most cited

UH Professor Zhifeng Ren is one of 50 Houston-area researchers named to Clarivate’s Highly Cited Researchers list for their broad and lasting impact. Photo courtesy UH.

Fifty-one scientists and professors from Houston-area universities and institutions were named among the most cited in the world for their research in medicine, materials sciences and an array of other fields. The Clarivate Highly Cited Researchers considers researchers who have authored multiple "Highly Cited Papers" that rank in the top 1percent by citations for their fields in the Web of Science Core Collection. The final list is then determined by other quantitative and qualitative measures by Clarivate's judges to recognize "researchers whose exceptional and community-wide contributions shape the future of science, technology and academia globally." Continue reading.

5. 6 Houstonians named to prestigious national group of inventors

Vineet Gupta, Eva Harth, Dr. Raghu Kalluri, Todd Rosengart, Sanjoy Paul and Dr. Jochen Reiser have been named to the National Academy of Inventors' 2025 class of fellows. Photos via the institutions.

Six Houston scientists and innovation leaders have been named to the National Academy of Inventors’ newest class of fellows. The award is the highest professional distinction awarded to academic inventors by the NAI. The 2025 class is made up of 169 fellows who hold more than 5,300 U.S. patents, according to the organization. The group hails from 127 institutions across 40 U.S. states. The Houston-based inventors are leading fields from AI to chemistry to cancer research. Continue reading.

Here are the 10 most-read Houston innovation headlines of 2025

Year in Review

Editor's note: As we ring in the new year, we're looking back at the stories that defined Houston innovation in 2025. The 10 most-read InnovationMap stories of the year highlight diversity, mentorship, and the startups that are shaping the future.

Houston named No. 2 most diverse major U.S. city for 2025

Houston is the No. 2 most diverse large city and the No. 5 most diverse city overall in America. Sky Noir Photography by Bill Dickinson/Getty Images

Houston has always been a diverse place, embracing people of many different cultural and socioeconomic backgrounds. The city earned recognition in WalletHub's rankings of the most diverse large American cities for 2025. The 2025 edition was the final installment in WalletHub's diversity study series, which annually compared 501 U.S. cities across 13 metrics in five categories that encompass "diversity" across socioeconomic, cultural, economic, household, and religious factors. Houston nearly topped the list of large U.S. cities, coming in at No. 2, and it ranked No. 5 in the overall national comparison.

What to know about the new emission inspection to register your car in Texas

An inspection is no longer required to renew registration, but an emission evaluation is. Photo by Tim Leviston/Getty Images

As of January 1, 2025, Texas vehicle owners no longer needed to obtain a safety inspection prior to vehicle registration. House Bill 3297, which passed during the 88th Legislature in 2023, eliminated the safety inspection program for non-commercial vehicles. But under the new law, the $7.50 fee that drivers had to pay as a safety inspection fee has not gone away. It now appears on your registration notice under a new name: "Inspection Program Replacement Fee."

Houston humanoid robotics startup secures millions in pre-seed funding

A concept design rendering of Persona AI's humanoid robot. Co-founder and CEO Nic Radford expects customers to take delivery of its first robot in 18 to 24 months. Rendering courtesy Persona AI.

In February 2025, a Houston-based startup developing AI-powered humanoid robots for manufacturers and other businesses raised more than $10 million in pre-seed funding — less than a year after its founding. Nic Radford, co-founder and CEO of Persona AI, declined to disclose the amount raised, however, he told InnovationMap that it was an eight-figure total.

2 Houston universities declared among world’s best in 2026 rankings

Rice is the No. 2 best school in Texas, and No. 119 in the world. Photo via Rice University

Two Houston universities were in a class of their own, earning top spots on a global ranking of the world's best universities. Rice University and University of Houston were among the top 1,200 schools included in the QS World University Rankings 2026. Ten more schools across Texas made the list.

Announcing the 2025 Houston Innovation Awards finalists

Meet the finalists for the Houston Innovation Awards, taking place Nov. 13. Graphic via Gow Media

In October 2025, InnovationMap was proud to reveal the finalists for the fifth-annual Houston Innovation Awards. This year's finalists were determined by an esteemed panel of judges, comprised of past award winners and InnovationMap editorial leadership, and they represented the best of Houston innovation this year.

Meet 6 mentors who are helping the Houston startup scene flourish

The 2025 Mentor of the Year will be announced on Nov. 13. Courtesy photos

Few founders launch successful startups alone — experienced and insightful mentors often play an integral role in helping business and founders thrive. The Houston startup community is home to many mentors who are willing to lend an ear and share advice to help entrepreneurs meet their goals. The Mentor of the Year category in our 2025 Houston Innovation Awards honored an individual like this, who dedicates their time and expertise to guide and support budding entrepreneurs. The award was presented by Houston City College Northwest.

Houston Nobel Prize nominee earns latest award for public health research

Dr. Peter Hotez with Dr. Maria Elena Bottazzi. Photo courtesy of TMC

Houston vaccine scientist Dr. Peter Hotez added one more prize to his shelf. Hotez — dean of the National School of Tropical Medicine and professor of Pediatrics and Molecular Virology & Microbiology at Baylor College of Medicine, co-director of the Texas Children’s Center for Vaccine Development (CVD) and Texas Children’s Hospital Endowed Chair of Tropical Pediatrics — is no stranger to impressive laurels. In 2022, he was even nominated for a Nobel Peace Prize for his low-cost COVID vaccine. His big win of 2025 was this year’s Hill Prize, awarded by the Texas Academy of Medicine, Engineering, Science and Technology (TAMEST).

Apple announces 250,000-square-foot Houston factory as part of $500B plan

Apple's Houston factory will open in 2026. Getty Images

As part of a more than $500 billion, four-year investment across the U.S., Silicon Valley tech giant Apple announced plans to build a factory in Houston that will produce servers for its data centers to support the company’s artificial intelligence (AI) business. In a February 24 announcement, Apple said the company and its partners will build the 250,000-square-foot factory. The plant, set to open in 2026, will employ thousands of people.

10 Houston billionaires make Forbes' list of richest Americans in 2025

Pictured: Nancy and Richard Kinder, the richest Houstonian, according to the Forbes 400. Photo by Michelle Watson/Catchlight Group

America's wealthiest billionaires were $1.2 trillion richer in 2025, bringing their collective worth to a staggering $6.6 trillion. And Houston's own Richard Kinder became the richest billionaire in the city, according to the annual Forbes 400. The Kinder Morgan chairman was named the 11th richest Texas resident and ranked as the 108th richest American. He dethroned Tilman Fertitta to claim the title as the wealthiest Houstonian.

2 Houston suburbs named among 10 best places to live by U.S. News & World Report

Pearland is the No. 2 best place to live in the U.S. Photo via pearlandedc.com

The Houston suburbs of Pearland and League City landed among the top 10 best places to live in 2025, according to U.S. News & World Report. For the 2025-2026 "Best Places to Live in the U.S." rankings, U.S. News expanded its coverage from 150 to 250 U.S. cities, and updated its methodology to examine each city based on five livability indexes: Quality of life, value, desirability, job market, and net migration. Pearland ranked No. 3 nationwide, earning a 7.0 score alongside No. 1-winning Johns Creek, Georgia and No. 2 winner Carmel, Indiana.

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