For the first time in more than a decade, Washington state has dropped out of the top 10 on CNBC’s annual ranking of the best states for business. 

The media company has ranked all 50 states on more than 100 metrics as part of its Top States for Business list since 2007.  

Washington state ranked as high as No. 2 in 2022 but came in at No. 14 for 2025.  

The Washington Retail Federation said in a release the state continues to score well in areas such as technology, innovation and workforce quality. However, the state’s high costs of living and the expense of doing business, such as elevated worker wages and the cost of office space, drove down this year’s ranking. 

“The findings underscore ongoing challenges for Washington’s business climate, especially in affordability and operational costs,” the Washington Retail Federation said in a release. “These insights may prompt renewed discussions on how to maintain the state’s competitive edge while addressing cost-related concerns.” 

This year’s top 10 states were North Carolina, Texas, Florida, Virginia, Ohio, Michigan, Georgia, Tennessee, Indiana and Minnesota.