Texas has been ranked the second-best state for business in the United States, according to CNBC’s 2025 “America’s Top States for Business” report, trailing only North Carolina.
The report, released in mid-July, evaluates all 50 states across 10 categories using 135 metrics, with a maximum score of 2,500 points. Texas earned high marks in workforce quality, economic strength and innovation—placing first in workforce and second in both the economy and technology and innovation categories.
“Texas continues to lead the way in creating a climate that attracts investment, talent and opportunity,” CNBC noted in its summary of the rankings.
Despite the strong business credentials, Texas ranked near the bottom in other areas. It finished 49th in quality of life, receiving an “F” grade based on poor health care access, high crime rates, limited mental health services and restrictive reproductive health policies. The state scored only 72 out of a possible 265 points in that category.
Texas also placed 17th in business friendliness and 26th in infrastructure, signaling room for improvement in regulatory environment and physical development. The state ranked fifth for cost of doing business.
North Carolina retained the top spot for the second consecutive year, buoyed by strong showings in education, infrastructure and corporate relocation trends. Florida, Virginia and Ohio rounded out the top five.
Business Facilities magazine also named Texas the top state for overall business climate in a separate 2025 analysis, highlighting the state’s robust capital investment pipeline and low regulatory burden.
Although Texas’s economic strengths remain a major draw for companies and investors, the state’s low quality-of-life score could impact long-term recruitment and retention.
“Texas offers an unparalleled business environment, but there’s a clear trade-off for workers and families when it comes to access to health care and public safety,” CNBC’s analysts said.
CNBC’s rankings have become a closely watched indicator for corporate leaders, site selectors and state policymakers weighing business climate and workforce development.
The full report is available at CNBC.com.