North Carolina is the best state for business (again), CNBC says
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Downtown Durham in 2025. Photo: Lance King/Getty Images
North Carolina is once again America's top state for business, beating Texas (No. 2) and Florida (No. 3), according to CNBC's 2025 annual ranking.
Why it matters: A top ranking is a major point of pride for politicians and economic developers, who tout North Carolina's business friendliness when trying to lure new employers, major events and visitors to the state.
- North Carolina has claimed the No. 1 spot three of the past four years on the esteemed list. It narrowly lost in 2024 to Virginia, its top rival and neighbor.
Yes, but: Despite threats of tariffs and hurricane recovery, North Carolina made a comeback this year while Virginia slipped to fourth place.
The big picture: Last year's second-best ranking didn't stop North Carolina from attracting a "steady stream" of new business in 2025, from JetZero to Amazon, which CNBC acknowledged in its report.
- Just this week, Citigroup and AssetMark announced a Charlotte expansion that will create more than 700 total jobs in exchange for millions in incentives.
- Last month, the California startup BuildOps announced plans to open a 290-person office in Raleigh in exchange for state and local incentives. Also in June, Amazon disclosed plans to invest $10 billion in building data centers in Richmond County.
How it works: CNBC scores all 50 states across 10 weighted categories for up to 2,500 points. North Carolina tallied 1,614 points this year.
- It finished third in CNBC's "all-important" economy category, behind Florida and Texas. The study references the state's 3.7% gross domestic product growth and the addition of more than 60,000 jobs last year.
- "While no state is more politically divided than deep purple North Carolina, both parties seem to agree on the importance of keeping business happy," CNBC's report states.
Threat level: CNBC called out North Carolina for being "almost unfailingly friendly to business" but "not terribly friendly to workers."
- The state performed its worst ever in the quality of life category, in the No. 29 spot. CNBC cited an "almost complete lack of worker protections" and a lack of laws "protecting nondisabled people from discrimination in public accommodations."
- The state's business climate is also highly vulnerable to disasters, tariffs and fallout from Medicaid cuts, CNBC noted.
- Hurricane Helene struck too late for the economic impact to be considered in the report, CNBC says.
Zoom out: Virginia dropped to its lowest standing since 2018 due to its "interdependence on the federal government" amid looming budget cuts.
What they're saying: Republican leaders were already celebrating — and taking credit for — the win Thursday morning, soon after the list was released. House Speaker Destin Hall, on X, thanked the GOP-led General Assembly's "successful reforms."
- "If you're thinking about moving here, don't forget which party made that prosperity possible," Rep. Brenden Jones wrote on the platform.
Gov. Josh Stein, a Democrat, thanked his predecessor, fellow Democrat Roy Cooper, as well as state lawmakers from both parties "who have helped North Carolina create a welcoming climate."
- "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 said in a statement.