BOSTON BUSINESS JOURNAL: CNBC ranks Mass. among the costliest states to do business

By William Hall
This piece originally ran in the Boston Business Journal on July 11, 2025.

The Bay State is becoming a better place for business, according to an annual study by CNBC released Thursday.

However, it’s also the second-most expensive state for business.

Massachusetts now ranks 20th overall in states’ competitiveness, up from 38th in 2024, and ranks second among northeastern states after Pennsylvania. The 20th-place rank is one below Alabama and just above Wisconsin.

According to CNBC, Massachusetts improved more than any other state in this year’s rankings, rising 18 spots after seeing the biggest drop last year, when it fell 23 places.

But the Bay State is at number 49 out of 50 when it comes to the cost of doing business. Only Hawaii ranks as a more expensive place to conduct commerce, the CNBC analysis shows.

In the Northeast, three other states besides Massachusetts rank among the 10 most expensive: Connecticut, New York and Rhode Island.

The cost of doing business is one of 10 broad criteria that CNBC considered in the study. State economies, infrastructure and workforce were some of the other factors. Each factor was weighted based on how frequently states use those selling points in economic development efforts, and then combined to come up with the overall ranking.

State economy was the heaviest-weighted factor, according to the national business news channel. The study, now in its 19th year, examined a total of 135 metrics to determine rankings across the categories.

For the past few years, business leaders in the state have pointed to costs businesses must bear as among the biggest challenges. In January, Gov. Maura Healey even discussed the cost of doing business here in her annual State of the Commonwealth address, directing government officials to review all business and licensing regulations.

“I want it cheaper and faster for you to do business in Massachusetts,” Healey said. “When we back our businesses, they grow and thrive.”

Christopher Anderson, president of the Massachusetts High Technology Council and part of the Massachusetts Opportunity Alliance, sounded a similar call in a statement about the CNBC ranking.

“It’s encouraging to see Massachusetts make overall gains,” he said, “but our bleak business climate is a clear signal that we must act decisively and together to course-correct. High taxes, rising costs and growing fiscal pressures are eroding our ability to retain talent, attract investment and support thriving communities.”

Although Massachusetts fares poorly for its cost of doing business, the state ranks among the 10 best in four categories: quality of life, technology and innovation, education; and access to capital.

Overall, North Carolina is the best state for business this year, according to the CNBC study. At No. 50, Alaska ranks as the worst. The complete study results can be found here.