How are utility and construction costs in North Carolina compared to other states?

When you build your business in North Carolina, you are able to take advantage of construction and electricity costs that are well below the national average. Want to learn more about how North Carolina measures up to other states? Explore our State Comparison map.

Business Climate

It Costs Less to Do More in North Carolina

Best Business Tax Climate (Site Selection, 2026)

Lowest Corporate Tax Rate and Falling (NCDOR, 2026)

Best Corporate Tax Structure (Area Development, 2026)

Low Cost

Low Taxes, Low Costs, High Opportunity

North Carolina offers one of the lowest costs of doing business in the United States, making it an ideal destination for companies seeking to maximize profitability. North Carolina offers the nation’s lowest corporate income tax rate, affordable utilities, competitive construction and real estate costs, and a favorable legal environment. By choosing North Carolina, companies gain a significant financial edge in a supportive business climate.

North Carolina, Perennial Top State for Business

For six consecutive years, CNBC has ranked North Carolina as either #1 or #2 in its annual America's Top States for Business rankings. With a world-class workforce, competitive business climate, and strong economy, North Carolina is where companies choose to invest, innovate, and grow.

Why NC

Whether your business has roots in North Carolina or you want to relocate your business here, North Carolina is primed for you to succeed.

NC At a Glance

WHY NC

Low Taxes and Going Lower

At 2%, North Carolina has the nation’s most competitive corporate income tax. By 2030, it will drop to 0%. Combined with a flat income tax and low property and sales tax rates statewide, your company can work towards a strong bottom line.

construction workers on side of building

Build and Run a Business For Less

Building and expanding your business is more economical here with commercial construction and electricity costs well below the national average. And North Carolina ranks 3rd in the nation for least expensive water rates.

forklift at construction site in wilmington, nc

A Favorable Legal & Regulatory Environment

Recent tort reform, streamlined practices, and the strengthening of business courts have given North Carolina one of the best legal climates in the US. When there’s less red tape and litigation, your business can reach new heights, faster.

An Economy That Rises Above the Rest

North Carolina‘s population and job growth far outpace the national average, and our GDP hit a historic high of approximately $760B in 2022. The economic forecast shows growth in every major industry category through the next five years.

Frequently Asked Questions

What is North Carolina’s corporate income tax rate and how does it benefit my business?

North Carolina has the nation’s most competitive corporate income tax of 2%. By 2030, it will drop to 0%. Combined with a flat income tax and low property and sales tax rates statewide, your company’s bottom line will be stronger.

Download Tax and Incentives Overview
How are utility and construction costs in North Carolina compared to other states?

When you build your business in North Carolina, you are able to take advantage of construction and electricity costs that are well-below the national average. Want to learn more about how North Carolina measures up to other states? Explore our State Comparison map.

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