Texas has clinched the top spot as the nation’s best business climate for the third consecutive year, according to Business Facilities magazine’s 2025 Annual Rankings Report.
The recognition comes as the state recorded more than 1,300 qualified capital investment projects in 2024.
The annual ranking evaluates states based on economic development activity, capital investment, job creation, and overall business environment. Texas’s consistent dominance reflects its growing appeal to corporations seeking favorable operating conditions.
“Texas moves at the speed of business,” Gov. Greg Abbott said in a press release. “As the eighth-largest economy in the world, Texas offers unmatched business advantages that no other state can claim — no corporate or personal income tax, a highly skilled and diverse workforce, easy access to global markets, robust infrastructure, and a reasonable regulatory environment.”
More than 20 companies announced headquarters relocations to Texas during the evaluation period. The influx highlights the state’s magnetic pull for businesses seeking growth opportunities.
Abbott credited recent legislative efforts for strengthening the state’s competitive edge.
“Working with the Texas Legislature, we had the most successful legislative session that furthered pro-growth policies, enhanced government efficiency, and delivered results that will benefit Texas businesses and entrepreneurs for decades,” he said.
Business Facilities evaluates states on multiple criteria, including economic strength, regulatory climate, infrastructure quality, and workforce availability. The publication weighs both announced and completed projects from the previous year.
Texas’s business-friendly policies — including no corporate income tax and no personal income tax — continue to attract major corporations and startups alike. Combined with its strategic location and infrastructure, the Lone Star State remains a national leader in economic competitiveness.