By Russell Flannery

Vermont’s poor showing in a new CNBC survey of the best U.S. states for business bears a warning for the state’s economy, budget and taxpayers. 

Overall, Vermont ranked 38^th in the survey out Thursday, sliding one place from No. 37 last year into the lowest quartile and down from No. 29 in 2023. The Green Mountain State was behind Massachusetts, Connecticut and New Hampshire among New England states in the 2025 survey.

The annual CNBC ranking took into account the economy, infrastructure, workforce, cost of doing business, business friendliness, quality of life, technology and innovation, education, access to capital, and cost of living. 

Vermont received an “F” for access to capital, as well as for technology and innovation.  It received a D for workforce, whose size is hurt by “green” real estate restrictions that limit housing supplies and benefit existing property owners, and a D+ for infrastructure.

Vermont earlier this year ranked 43rd overall on the 2025 State Tax Competitiveness Index published by the Tax Foundation.  “Vermont levies all major categories of taxation with comparatively high rates and an overall uncompetitive tax structure,” it said.  

“Property taxpayers in the state are subject to a high effective rate of taxation, second only to Maine. Further, property tax collections per capita in the state are among the highest in the country ($3,001),” the foundation also noted. Vermonters last year ended a veto-proof “supermajority” of Democratic and Progressive votes in the state legislature after it passed a large property tax increase.   

The state’s overall rank of No. 38 on the CNBC survey was helped by a No. 1 score in quality of life. 

Low overall business competitiveness doesn’t augur well for the state’s future government budget revenue and jobs, particularly as it comes at a time when federal government funds available to the state by are being squeezed by huge deficits and debt.  Vermont healthcare and education cost increases are not on a sustainable track, analysts have said, though the state currently holds an AA+ credit rating from S&P Global Ratings.

North Carolina topped the CNBC ranking of best states for business, followed by Texas, Florida, Virginia, Ohio, Michigan, Georgia, Tennessee, Indiana and Minnesota.

Rounding out the bottom after Vermont were Oregon, West Virginia, Arkansas, Nevada, Maine, New Mexico, Mississippi, Louisiana, Rhode Island, Montana, Hawaii and, in last place, Alaska. 

The author, a former long-time editor at Forbes, graduated from Mt. St. Joseph in Rutland and lives in Rutland.