41. Alabama

Residents here embrace the low cost of living, but education and health care strike sour notes.

Assembly team members assist in the chassis marriage of a 2011 Hyundai Sonata at the Hyundai Motor Manufacturing Alabama (HMMA) plant in Montgomery, Alabama.
Mark Elias | Bloomberg | Getty Images
Assembly team members assist in the chassis marriage of a 2011 Hyundai Sonata at the Hyundai Motor Manufacturing Alabama (HMMA) plant in Montgomery, Alabama.
Category
Score
2018 Rank
2017 Rank
Grade
Workforce 196 36 36 C-
Infrastructure 218 18 18 B-
Cost of Doing Business 179 26 7 (Tie) B-
Economy 128 37 26 D+
Quality of Life 87 48 50 F
Technology & Innovation 97 34 31 (Tie) D+
Education 53 47 47 F
Business Friendliness 63 36 33 (Tie) C-
Access to Capital 39 30 29 D+
Cost of Living 43 8 12 A-
Overall 1103 41 37 -

Economic Profile

Governor: Kay Ivey, Republican

Population: 4,874,747

GDP growth (Q4 2017): 2.8 percent

Unemployment rate (May 2018): 3.9 percent

Top corporate tax rate: 6.5 percent

Top individual income tax rate: 5 percent

Gasoline tax: 18 cents/gallon

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

Major private employers: Wal-Mart, Regions Bank, Vulcan Materials Company

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

Top States Past Year Rankings

  • CNBC unveils its 12th annual America's Top States for Business study. See where your state ranks in 2018.

  • CNBC unveils its 11th annual America's Top States for Business ranking for 2017, scoring all 50 states on 10 key measures of competitiveness.

  • Top States promos Arm Wrestling

    CNBC unveils its 10th annual America's Top States for Business ranking, scoring all 50 states on 10 key measures of competitiveness.

Latest Special Reports

  • Innovative female entrepreneur examining prototype

    In an era of rapid technological advances and demographic change, how do legacy companies adapt, innovate and evolve? CNBC Evolve features iconic global companies and executives who are embracing change and transforming for the future.

  • working together

    CNBC Upstart 100 is a new original list of the bright young startups poised to become the great companies of tomorrow.

  • A look at 50 private companies set to reshape the business landscape.