North Carolina has regained the top position from CNBC as ‘America’s Top State for Business in 2025’.
The annual ranking evaluates all 50 states across 135 metrics in 10 key categories of competitiveness, including economy, business friendliness, workforce, infrastructure, and more.
The Tar Heel State has been a top performer in the annual survey in recent years, claiming the number one spot in 2022 and 2023, and finishing second in 2021 and 2024, behind Virginia.
The survey highlights North Carolina’s strengths in business friendliness (4), workforce (4), and overall economic performance (3), while pointing to the cost of living (23), quality of life (29), and cost of doing business (21) as key weaknesses.
“North Carolina’s third CNBC ‘Top State for Business’ title in four years is no accident. It reflects a decade of disciplined fiscal policy, competitive tax reform, and a regulatory climate that trusts entrepreneurs more than bureaucrats,” said Donald Bryson, CEO of the John Locke Foundation. “The result is a 3.7 percent GDP surge, tens of thousands of new jobs, and a talent pipeline that rivals any in the nation. Lawmakers should double down on this free-market formula—because the real winners are North Carolinians who enjoy greater opportunity and rising prosperity.”
Governor Josh Stein, appearing in an interview with CNBC on the USS Battleship North Carolina in Wilmington, was asked about the current tax climate across the state.
“No one likes to pay taxes. So we want taxes to be as low as possible, but we need enough, enough to pay for excellent public schools, enough to pay for our community college and university systems, to make sure that our roads are excellent. We have incredibly good infrastructure,” proclaimed Gov. Stein. “Let’s get them as low as we can. We have the lowest corporate income tax of any state that has a corporate income tax in the country. We have low personal income taxes. So what I don’t want us to do is imprudently continue to go to zero when we have all this fiscal uncertainty coming from Washington.”
North Carolina legislative leaders welcomed the news, emphasizing the decades-long efforts Republicans have invested at the General Assembly.
“North Carolina offers unparalleled opportunities for businesses of all sizes,” Senate Leader Phil Berger, R-Rockingham said. “Since 2011, the Republican-led General Assembly has reshaped our state’s business climate by slashing our tax rates, reducing regulatory hurdles, and supporting world-class educational and job training programs. Our community colleges and UNC system schools are vital partners in preparing our citizens to fill the thousands of jobs being created here and the existing ones. We must double down on our efforts to support business growth and development from Murphy to Manteo.”
“We’ve taken a deliberate approach to fostering a business-friendly environment—grounded in policies that reduce barriers to entry, promote competition, and encourage investment and growth,” said House Speaker Destin Hall, R-Caldwell. “Being ranked number one for business yet again is just the latest example of the successful reforms implemented in North Carolina by the Republican-led General Assembly.”
Andy Ellen, President and General Counsel of the North Carolina Retail Merchants Association said the news reflects our states motto.
“North Carolina reclaiming CNBC’s “Top State for Business” title is a testament to the outstanding work of our state’s policymakers, business community, and educational system, said Ellen. “It reflects the spirit of our state motto, ‘To Be Rather Than to Seem.’ The North Carolina Retail Merchants Association is proud to play even a small part in this achievement as we continue working to make North Carolina the very best place in the country to operate a retail business.”
Other top states included Texas, Florida, Virginia, and Ohio, while Rhode Island, Montana, Hawaii, and Alaska ranked at the bottom.