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Site Selection magazine has named Texas the top state for business climate in the U.S., marking the second consecutive year the state has claimed the title.
In the magazine's November 2024 issue, Texas topped a list of the top 25 state business climates, followed by Georgia, North Carolina, Virginia, and Florida. Rankings were based on a 14-metric index that included a survey of corporate real estate executives and site selectors, corporate facility investment data from the Conway Projects Database, and various external sources measuring factors such as taxation, infrastructure, tech employment, and startup ecosystems. Ohio, Arizona, Indiana, Illinois, and Michigan round out the top 10.
Among the top 10 states, Florida saw the most significant rise, jumping from No. 8 to No. 5. Arizona moved to No. 7 from No. 11, and Indiana climbed six spots to No. 8. The executive survey component of the rankings placed Texas in the No. 1 position, followed by North Carolina, Tennessee, Virginia, and Georgia.
“Texas again leads all states with the top business climate in America for the second year in a row,” Gov. Greg Abbott said in a statement. “As the eighth-largest economy in the world, Texas is the No. 1 destination for businesses to come here, succeed here, and create more good-paying jobs for hardworking Texans. Texas offers advantages no other state can claim: a businessfriendly climate with no corporate or personal income tax, a highly skilled, diverse workforce, easy access to global markets, robust infrastructure, and a reasonable regulatory environment that allows businesses and entrepreneurs to thrive. I thank Site Selection magazine for recognizing Texas as the nation’s leader, and I congratulate economic development professionals across this great state for their work to keep Texas the economic envy of America.”
In addition to ranking No. 1 overall, Texas also led all states in the survey of corporate real estate executives and site selectors, a key data point in Site Selection's annual Top Business Climate index.
Other factors that contributed to Texas' top ranking included the number of jobcreating relocation and expansion projects in the state, as well as Texas' pro-growth approach, investments in workforce development and infrastructure, access to technology and tech talent, and a stable regulatory environment.
