Tar Heel State earns top honors thanks to strong economy, world-class workforce, and pro-business climate
North Carolina has claimed the title of America’s Top State for Business in 2025, marking a triumphant return to the number one spot in CNBC’s annual rankings. This achievement is a testament to the Tar Heel State’s consistent economic growth, competitive tax policies, and a deep investment in education and workforce development.
The state previously earned the top distinction in both 2022 and 2023, and finished a close second in 2021 and 2024. This year’s victory solidifies North Carolina’s position as a national business leader, driven by a steady economy and a welcoming climate for both corporations and skilled workers.
A Thriving Economy and Skilled Labor Force
North Carolina’s strong economic performance was key to its 2025 victory. The state’s GDP grew by 3.7% in 2024, ranking fifth in the nation, and continues to expand—posting 0.8% growth in the first quarter of 2025. With a May 2025 unemployment rate of just 3.7%, the labor market remains robust.
Fueling this momentum is a steady influx of new residents and talent, drawn by North Carolina’s combination of quality-of-life amenities and job opportunities. The state’s population now tops 11 million, as workers continue to relocate to the region for careers in tech, finance, manufacturing, and life sciences.
“North Carolina’s appeal is no accident,” said CNBC senior economics reporter Scott Cohn, who leads the annual ranking. “This is a state that has consistently invested in its people, built strong infrastructure, and kept its eye on what businesses need to succeed.”
Low Taxes, High Incentives
North Carolina's corporate tax rate of 2.5% remains the lowest in the nation among states that levy one, while its individual income tax tops out at just 4.5%—a compelling benefit for entrepreneurs and executives alike.
In addition to favorable tax policy, North Carolina continues to invest in business-friendly infrastructure and economic incentives. From tech hubs like Raleigh-Durham to industrial corridors stretching through Charlotte, Greensboro, and beyond, the state’s regional economies are flourishing.
Education Fuels the Future
What sets North Carolina apart in 2025 is not just its business climate, but its long-term investment in education and workforce development. CNBC’s ranking praised the state’s commitment to public universities, community colleges, and K–12 schools.
As employers seek a pipeline of skilled, adaptable workers, North Carolina’s education system is helping meet that demand. Major research universities like UNC-Chapel Hill and NC State continue to turn out top-tier graduates, while workforce training initiatives expand access to technical skills in rural and urban communities alike.
Looking Ahead
With its blend of economic vitality, workforce strength, and business-friendly governance, North Carolina is poised to stay at the top. As other states compete to attract major employers and talent, the Tar Heel State’s combination of affordability, opportunity, and innovation continues to stand out.
For newcomers and investors alike, the message is clear: North Carolina is not just a great place to live—it’s the best place in America to do business in 2025.