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Rankings are computed from publicly available federal and state government datasets, supplemented by a handful of published indexes (such as the Tax Foundation, Child Care Aware of America and Zillow Research). Figures are used as each source publishes them, including the FBI's own state crime estimates; nothing is synthetic or modeled by us, and every source is cited below.

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  • Bureau of Labor Statistics, OES·
  • IRS Statistics of Income, State-to-State Migration·
  • U.S. Census Bureau, ACS State-to-State Migration Flows·
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Home/NY/Best for Small Business
New York · best for small business · #44 of 50 states

Best Cities for Small Business in New York

New York ranks #44 of 50 for small business, with a small business score of 37.5. Levittown is its best city for small business at 81.4.

See all 50 states for small business →

#1 city in NY for small business
Levittown81.4
Small Business score out of 100
New York, all states
#44 of 50
Population
51,904
Open Levittown →
Tax burden
13.56%
% of income
Fiscal health
45/100
GDP + debt + reserves
Pop. growth
+0.01%
Census estimates
Unemployment
4.3%
BLS LAUS
Economy score
46/100
Income + jobs + growth

What Small Business Should Know About New York

New York ranks #44 out of 50 for small business owners and entrepreneurs, presenting some challenges for business formation and growth. The state's fiscal health score of 45/100 raises questions about the state's long-term fiscal trajectory, which can affect tax policy and regulatory stability.

Tax policy directly impacts the bottom line. New York's overall tax burden is 13.56% of income, with a 14.78% income tax rate that applies to both personal and pass-through business income. The 8.54% combined sales tax rate is on the higher side and worth factoring into pricing strategy. The economic environment (score: 46/100) with 4.3% unemployment shows healthy labor availability.

Population is roughly stable, meaning market growth will depend on capturing share rather than riding demographic expansion. The education system (score: 57/100) produces a reasonably well-prepared workforce. A typical home value of $526,714 is expensive enough that employee compensation expectations may be higher.

All 20 Cities Ranked for Small Business

#  CityGradeSmall Business scoreOverallHousehold financesEconomyGrowthPopulation
1LevittownA+81.474.89597—51,904
2White PlainsA+66.270.868744760,666
3New RochelleA+63.267.569694482,769
4West SenecaA61.463.75957—45,303
5Tonawanda TownA60.565.45656—56,806
6IrondequoitB+58.962.05857—50,657
7CheektowagaB+57.260.95049—76,056
8YonkersA56.762.9515747209,978
9HempsteadC+53.355.353584158,801
10Mount VernonB52.657.347534372,427
11TroyB49.158.622434451,033
12New YorkC+47.654.84248368,483,844
13AlbanyC+47.554.9254846100,492
14SchenectadyC44.451.622424268,847
15BuffaloD40.648.8143735276,854
16UticaC40.350.712393464,217
17SyracuseC40.149.883736146,384
18RochesterC39.750.393437208,772
19BinghamtonC39.149.35383847,151
20Niagara FallsD38.647.418323247,987

City small business scores use each city's own data, with the category weights rescaled over the categories the city has; outdoor access has no city-level measure and is left out.

Compare: States with Similar Small Business Rankings

  • West VirginiaSmall Business score 46.1#39
  • Rhode IslandSmall Business score 43.3#40
  • MississippiSmall Business score 41.3#41
  • OregonSmall Business score 40.2#42

Also See: New York for Other Lifestyles

  • FamiliesFamilies score 62.6#29
  • RetireesRetirees score 62.0#25
  • Remote WorkersRemote Workers score 41.4#44
  • Young ProfessionalsYoung Professionals score 42.8#40
  • Outdoor EnthusiastsOutdoor Enthusiasts score 50.9#21

Frequently Asked Questions

Is New York a good state for small business?

New York ranks #44 out of 50 for small business with a persona-weighted score of 37.5/100. Its strongest relevant category is Safety (63/100) and its weakest is Growth (14/100).

What is the best city for small business in New York?

Levittown ranks #1 in New York for small business with a score of 81.4/100, followed by White Plains and New Rochelle.

What factors are most important for small business in New York?

Rankings weighted toward business-friendly tax climate, strong economy, population growth, workforce quality, and transportation infrastructure — what matters when starting or running a small business.