Texas has claimed the top spot as America’s best state for business for the twenty-first consecutive year. The Lone Star State continues to attract major corporations and foster economic growth despite challenges from other competitive states.
Chief Executive Magazine’s annual “Best and Worst States for Business” survey reveals Texas maintained its decades-long dominance in 2024. The prestigious ranking draws input from hundreds of CEOs nationwide who evaluate states on taxation, regulation, workforce quality, and living environment.
“Texas offers what growing businesses need most – predictable regulations, reasonable tax structures, and a government that actually listens to job creators,” said Mark Wilson, CEO of Houston-based EnergySolutions, who participated in the survey. “When companies plan their future, certainty matters more than anything else.”
The state’s winning formula combines several key economic advantages. Texas boasts no corporate or personal income tax, creating significant savings for businesses and their employees. Its regulatory environment emphasizes flexibility while maintaining necessary protections. Additionally, the state government consistently invests in infrastructure development to support business growth.
Florida secured second place in the rankings, with Tennessee, North Carolina, and Arizona rounding out the top five. These states share similar pro-business policies but haven’t matched Texas’ comprehensive economic development approach.
According to the Texas Economic Development Corporation, the state added over 430,000 jobs in 2023, outpacing every other state in job creation. Major companies including Tesla, Oracle, and Hewlett Packard Enterprise have relocated their headquarters to Texas in recent years, bringing thousands of high-paying positions.
The Texas Workforce Commission reports that unemployment rates remain below the national average at 3.8%, while workforce participation continues to climb. The state’s education system partners closely with industry leaders to develop training programs addressing specific skill needs.
“We’re creating talent pipelines directly from our community colleges and universities to emerging industries,” explained Dr. Jennifer Martinez, workforce development director at the Texas Higher Education Coordinating Board. “When companies relocate here, they find workers ready to hit the ground running.”
Texas Governor Greg Abbott celebrated the milestone achievement during a press conference at the state capitol. “Twenty-one years at number one isn’t an accident,” Abbott stated. “It’s the result of deliberate policies that prioritize economic freedom and innovation.” He emphasized the state’s commitment to maintaining its business-friendly climate while addressing infrastructure and education challenges.
Not everyone views Texas’ approach favorably. Critics point to concerns about environmental oversight, healthcare access, and income inequality. The state ranks below average in healthcare coverage, with approximately 18% of residents lacking health insurance according to the Centers for Disease Control and Prevention.
Environmental groups have raised concerns about regulatory flexibility, particularly regarding emissions standards. The Sierra Club’s Texas chapter director noted: “Economic growth shouldn’t come at the expense of environmental protection. We need balanced approaches that support business while safeguarding natural resources.”
Despite these criticisms, businesses continue voting with their feet. Commercial real estate development reached record levels in Dallas-Fort Worth, Houston, and Austin metropolitan areas last year. The technology sector has shown particularly strong growth, with Austin emerging as a prominent alternative to Silicon Valley.
International investment in Texas has also surged. Foreign direct investment topped $19.9 billion in 2023, according to the Bureau of Economic Analysis, with significant contributions from companies based in Japan, Germany, and South Korea.
Looking ahead, Texas faces emerging competition from neighboring states adopting similar business-friendly approaches. Oklahoma and Louisiana have implemented tax reforms aimed at attracting businesses from their larger neighbor, while Arizona and New Mexico court technology and manufacturing companies with specialized incentives.
Economic analysts suggest Texas must address several challenges to maintain its competitive edge. The state’s energy grid reliability came under scrutiny following failures during extreme weather events. Additionally, housing affordability has decreased in major metropolitan areas as population growth out
