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Texas named best business climate in the U.S. for third year running

Chelsi Ramos

Texas named best business climate in the U.S. for third year running

Texas has been recognized as the top state for business in the U.S. for the third consecutive year, according to Business Facilities magazine’s 2025 Annual Rankings Report.

The ranking evaluates states on multiple criteria including capital investment, job creation, economic strength, tax and regulatory policy, infrastructure, and workforce availability. Texas outperformed other states across these categories, driven by continued corporate relocations, large-scale investment, and a strong pro-business policy environment.

The report highlighted over 1,300 qualified capital investment projects in Texas during the year, alongside the relocation of more than 20 corporate headquarters to the state—key signals of sustained economic momentum.

Governor Greg Abbott said the recognition reflects the state’s long-term commitment to growth and competitiveness. “As the eighth-largest economy in the world, Texas offers unmatched business advantages—no corporate or personal income tax, a highly skilled and diverse workforce, easy access to global markets, robust infrastructure, and a reasonable regulatory environment,” Abbott stated.

Texas Governor Greg Abbott (Photo source: Hoover Institution)

The Texas Legislature has also been credited for advancing pro-growth reforms and streamlining government operations to attract and retain business.

Texas’s continued recognition signals confidence from both domestic and global investors and reinforces its position as a top destination for economic development and innovation.

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Chelsi Ramos

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