Ohio takes best spot for business as North Carolina slips from No. 1 ranking

After enjoying the coveted title of “Top State for Business” in 2025, North Carolina slipped to the No. 2 position in CNBC’s 2026 “America’s Top States for Business” ranking.

The state has finished first or second in each of the past six years, and just missed out on repeating its top ranking this year to Ohio, which won by nine points.

The top-weighted category this year was infrastructure, a critical factor as new and established businesses pursue strategic locations, access to fresh water and abundant energy. Ease of permitting projects was also factored into the category for the first time. In this category, North Carolina earned a B-minus.

Where did North Carolina shine?

According to the CNBC survey, North Carolina ranked in the top 10 for its economy, workforce, and access to capital, receiving A grades for all three.

But North Carolina slid substantially in the rankings for cost of living and quality of life.

According to CNBC, the quality of life rating is based on key metrics that include overall affordability, childcare, safeguards against discrimination, crime and the environment of the state. North Carolina dropped five places in 2026, from 29th in the country to 34th.

The state’s rating for cost of living fell even more sharply over the past year, from 23rd nationally in 2025 to 35th this year.

Also notable this year is that North Carolina ranked 12th for education, falling out of the top 10. That’s after North Carolina ranked dead last in school funding effort, according to the Education Law Center’s Making the Grade 2025 report.

Governor Josh Stein celebrated North Carolina’s ranking as the nation’s No. 1 economy in 2026, but called on the legislature to do more to address cost of living issues.

“This ranking proves that we can’t rest on our laurels,” said Stein in a statement. “My administration is working to lower the cost of housing, childcare, healthcare, and utilities – and I have long called on the General Assembly to join me in those commitments.”

Stein said the state should not be surprised to see some “consequences” after legislators took more than 1,000 days to agree upon a state budget.

This week the governor signed a $34.4 spending plan and legislation to modernize the state’s hiring process, which now includes 12 weeks of paid parental leave in an effort to retain state workers.

“I am confident that the budget is a launching pad, not our landing place,” said Stein.

North Carolina ranked ‘Top State for Business’ but federal cuts, uncertainty threaten progress

Neither House Speaker Destin Hall (R-Caldwell) nor Senate Leader Phil Berger (R-Rockingham) responded to NC Newsline’s request for a response to Stein’s comments on the budget delay.

But Rep. Erin Paré (R-Wake), a House budget co-chair, said North Carolina’s No. 1 ranking for the economy is “more proof that Republican leadership in the General Assembly continues to work.”

After Ohio and North Carolina, Virginia, Texas and Minnesota round out the top five states for business this year.