Top States for Business

19. Alabama

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Alabama Score and Ranking

CATEGORY 2025 SCORE 2025 RANK 2024 RANK 2025 GRADE
ECONOMY2372320C
INFRASTRUCTURE211288C
WORKFORCE1991624C+
COST OF DOING BUSINESS1701914B
BUSINESS FRIENDLINESS1671313B+
QUALITY OF LIFE924448F
TECHNOLOGY & INNOVATION1402221C
EDUCATION601612B
ACCESS TO CAPITAL184029F
COST OF LIVING43614B+
OVERALL13371920

Economic Profile

Governor: Kay Ivey, Republican

Population: 5,157,699

GDP growth (Q1 2025): 1%

Unemployment rate (May 2025): 3.3%

Top corporate tax rate: 6.5%

Top individual income tax rate: 5%

Gasoline tax: 49 cents/gallon

Bond rating (Moody's/S&P): Aa1, Stable/AA, Stable

Economic profile sources: U.S. Census Bureau, U.S. Bureau of Economic Analysis, U.S. Bureau of Labor Statistics, Federation of Tax Administrators, Energy Information Administration (including 18.40 cent/gallon federal tax), Moody's Investor Service, S&P Global Market Intelligence

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