North Carolina is the nation’s No. 1 in the 2025 America’s Top States for Business, CNBC said Thursday morning.
In a presentation from the Battleship North Carolina in Wilmington, network anchor Scott Cohn said the state’s “world-class workforce, a solid economy, and a heritage of innovation” has enabled it to keep winning business, and “keeps winning our rankings.”
The Tarheel State was No. 1 in 2022 and 2023, and No. 2 in 2021 and 2024. This year’s top five is rounded out by Texas, Florida, Virginia and Ohio. Virginia was No. 1 in 2024 and 2021.
The state’s business fortunes have been top 12 each year since the listing began in 2007 and the state’s shift in policies since the 2010 midterms led by Republicans in majorities of the General Assembly are pivotal to the state’s attraction. A budget deficit 15 years ago that is estimated between $800 million and $2 billion turned around to a surplus of $5 billion prior to Hurricane Helene last fall.
“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,” said Senate President Pro Tempore Phil Berger, R-Rockingham. “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.”
Among all 50 states getting measured in 128 metrics assigned to 10 categories, the Old North State was third in economy; fourth each in workforce and business friendliness; and sixth in education. Access to capital earned an eighth place; infrastructure 11th; technology and innovation 13th; cost of doing business 21st; cost of living 23rd; and quality of life 29th.
By letter grade, it’s an A for business friendliness; A-minus each for economy, workforce and education; B-plus for infrastructure and access to capital; B for cost of doing business, and technology and innovation; C-plus for cost of living; and C-minus for quality of life.
North Carolina’s 1947 right-to-work law impacts labor unions and CNBC analysis says the “lack of basic worker protections” contributes to the low quality of life. Residents, in general, say otherwise because of beaches and mountains on each end of the state; the choice of 68 four-year universities for higher education, including 16 in the UNC System, and a 58-campus system of community colleges; and the 80-20 mix of rural and urban counties to call home.
The gain in population is 3 million the last 20 years, and more than 5.1 million the last 40.
“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 Rep. Destin Hall, R-Caldwell, the speaker in the state House of Representatives. “Being ranked No. 1 for business yet again is just the latest example of the successful reforms implemented in North Carolina by the Republican-led General Assembly.”
The state’s economic profile, as listed by the network, includes a population of 11 million; gross domestic product growth in the first quarter of 2025 at 0.8%; May unemployment 3.7%; top corporate tax rate 2.5%; and top individual income tax rate 4.5%.
North Carolina is one of only 13 states with a AAA rating from all three major national bond rating agencies – Moody’s Investors Service, Fitch Ratings, and S&P Global Ratings. The federal rate of 18.4 cents per gallon is added to the gasoline tax for CNBC’s 59 cents per gallon listing.
Two years ago, when last No. 1, then-Gov. Roy Cooper used the CNBC announcement at the Biltmore Estate in Asheville as an opportunity to give warnings about the Republican-led General Assembly’s threat to how well the state does. His successor and political party friend, first-term Democratic Gov. Josh Stein, this time simply complimented Cooper, General Assembly leaders and key economic development people.
“Our people, state’s business climate, top research universities and excellent community college system, infrastructure, and high quality of life help both companies and workers thrive,” Stein’s statement said. “I want to thank leaders like former Governor Roy Cooper and state legislators of both parties who have helped North Carolina create a welcoming climate. I am proud of the progress our state has made, and we are just getting started.”
There was no ranking in 2020 when COVID-19 broke out. With exception of three times ninth place (2009, 2015, 2018) and once 12th (2013), North Carolina has always been top five since the first ranking in 2007 and nine of 17 times been top four or better.
CNBC bills itself a “recognized world leader in business news and provides real-time financial market coverage and business content consumed by nearly half a billion people per month across all platforms.”
