North Carolina has been ranked America’s Top State for Business in 2025, according to a CNBC’s annual scoring of all 50 states.
Its No. 1 ranking is based on the state’s workforce, economy and corporate hospitality.
North Carolina has ranked at or near the top of the CNBC rankings for the past several years, missing the top ranking to Virginia by just 3 points last year. The Tar Heel State ranked first in 2022 and 2023, and was runner-up in 2021.
The study measured states across 10 competitiveness categories, using 135 different metrics for a total possible score of 2,500. North Carolina’s top ranking came after scoring 1,614 points.
North Carolina didn’t rank first in any individual category, but its strong performance across all categories boosted it to the No. 1 spot. The state ranked highest in economy, scoring 322 points and making it the third-best economy in the nation. The state ranked fourth for workforce and business friendliness. It also ranked in the top 10 in education (No. 6) and access to capital (No. 8). It landed just outside the top 10 in infrastructure, at No. 11.
The rankings also include grades. North Carolina scored an “A” for its economy, workforce, business friendliness and education. It earned a “B” in infrastructure, cost of doing business, technology and innovation, and access to capital. With “C” grades, North Carolina scored middle of the road for its quality of life and cost of living.
Texas landed in the No. 2 spot this year, buoyed by a top ranking for its workforce. But it lost ground on quality of life, ranking second-to-last in the nation.
Florida landed in third place, largely based on its top ranking for its economy. But the Sunshine State ranked third-to-last in cost of living, a metric largely driven by the state’s rapid population growth and insurance affordability crisis.
The rankings come as North Carolina has won on a number of business fronts. In June, an aviation startup that manufactures fuel-efficient airliners, JetZero, announced it was building its first factory in Greensboro, bringing 14,500 jobs to the state. And the same month, Amazon announced it would invest $10 billion to build new data centers in the state, adding to $12 billion the company has already invested in the Tar Heel State since 2010, according to CNBC.
In 2024, North Carolina added 60,000 jobs and its GDP grew 3.7%.
The state’s top ranking comes despite challenges still facing the state as recovery from Hurricane Helene continues. The storm, which swept through the mountainous western parts of the state last September, killed 100 people and destroyed countless homes and businesses, totaling nearly $60 billion in overall damage.
Because it hit the state last year, its impacts on the state’s business climate may not yet be reflected in CNBC’s rankings, meaning North Carolina may see a setback in next year’s analysis.
Its business climate also stands to take a hit if plans to reduce funding to the National Institutes of Health and National Science Foundation are successful — North Carolina is one of the nation’s top recipients of grants from the agency.
And the state faces a potential $32 million hit from Medicaid cuts passed under President Donald Trump’s controversial tax bill, as more than 600,000 North Carolina residents risk losing their health insurance, according to CNBC.
It’s worth noting that other states are facing similar Medicaid budget concerns.
At the bottom of this year’s rankings are Alaska (No. 50) and Hawaii (No. 49). Alaska’s bottom-of-the-barrel showing is largely due to its dependency on oil, as its crude prices are down 12%, putting the state dead last in the economy category.
Hawaii, meanwhile, posted the nation’s highest cost of doing business and second-highest cost of living.
