For the third time in four years, the Tar Heel State picks up the CNBC annual “America’s Top States for Business” crown.
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- North Carolina
- Texas
- Florida
- Virginia
- Ohio
- Michigan
- Georgia
- Tennessee
- Indiana
- Minnesota
A robust economy, skilled workforce, and business-friendly environment, 2025 marks another successful year for North Carolina. Adding to this success, companies like JetZero and Amazon are making significant investments in the state, generating thousands of jobs and stimulating economic growth.
Texas followed as the runner-up, with a top-rated workforce, but struggled with quality of life issues. Florida came in third, leading in the “Economy” category for the third year, but facing rising costs due to an insurance crisis. Virginia slipped to fourth place, still a powerhouse in education and infrastructure, while confronting challenges due to federal budget cuts. Ohio rounded out the Top 5, and Massachusetts made a significant comeback as this year’s “Most Improved State.”
Bottom Dwellers
The states at the bottom of the CNBC ranking include Louisiana, Rhode Island, Montana, Hawaii, and Alaska. Louisiana faces vulnerabilities due to federal budget cuts, while Rhode Island struggles with high business costs and unfriendly regulations. Montana has the worst-ranked workforce, Hawaii suffers from high business and living costs, and Alaska’s economy is heavily dependent on oil, which has been declining.
While North Carolina excels in attracting business, the state still faces challenges in certain areas. Despite ranking third in the “Economy” category, behind Florida and Texas, and boasting impressive GDP growth and job creation, the state’s “Quality of Life” ranking is relatively low. Concerns include limited worker protections and a lack of non-discrimination laws. Additionally, North Carolina’s heavy reliance on international trade makes it vulnerable to tariff impacts, as evidenced by a reduction in port traffic.
Methodology
CNBC ranked the states in 10 areas, assigning different percentage weights to each.
Economy (17.8%) considers GDP and job growth, fiscal condition, real estate market health, corporate presence, entrepreneurial activity, tariff risks, federal spending dependence, and new business survival rates.
Infrastructure (16.2%) focuses on transportation systems (air, water, road, rail), electrical grids, water/wastewater utilities, broadband connectivity, computing power, market access, site readiness, and climate change resilience.
Workforce (13.4%) evaluates the concentration of STEM workers, educational attainment, talent attraction, worker training programs, right-to-work laws, and productivity.
Cost of Doing Business (11.8%) examines tax climate, wage/utility costs, office/industrial space costs, property-casualty insurance expenses, and business incentives.
Business Friendliness (10.8%) assesses the legal and regulatory environment, liability climates, land use regulations, and hospitality towards emerging industries.
Quality of Life (10.6%) considers crime rates, environmental quality, healthcare, childcare accessibility, worker protections, inclusiveness, and reproductive rights.
Technology & Innovation (10.2%) measures patent activity, research grants, state support for R&D, semiconductor industry presence, and AI development.
Education (4.4%) evaluates K-12 and higher education, HBCUs, and community college/career education systems.
Finally, Access to Capital and Cost of Living are considered, both holding a weight of 2.4%.

