The North Carolina Department of Commerce has released the county tier designations for 2026, a classification that affects several economic development programs across the state. The annual rankings are required by state law and help determine eligibility for various grants and funding opportunities.
For 2026, eighteen counties will see changes in their tier status. Beaufort, Camden, Davie, Graham, Macon, Montgomery, Randolph, Stanly, and Surry counties have moved to a less distressed tier ranking. Conversely, Buncombe, Burke, Granville, Haywood, Henderson, Jones, Madison, Pasquotank, and Yancey counties have shifted to a more distressed designation.
The tier system is based on criteria set by the North Carolina General Assembly under General Statute §143B-437.08. The statute outlines four factors—unemployment rate, median household income, population growth rate, and assessed property value per capita—which are compiled by the Department of Commerce to rank all 100 counties from one to three. Tier 1 includes the most economically distressed counties; Tier 3 represents those with the least distress.
State law requires that each year 40 counties be classified as Tier 1 and Tier 2 respectively while 20 are designated as Tier 3.
According to the Department of Commerce: “The designations…play a role in several programs that assist in economic development.”
Tier assignments influence eligibility for multiple grant programs administered by the department such as the One North Carolina Fund and infrastructure-related grants for building reuse and water or sewer projects. They also impact guidelines within performance-based initiatives like the Job Development Investment Grant (JDIG) program by directing funds toward infrastructure improvements in areas identified as more economically challenged.
More information about how these tiers work can be found at https://commerce.nc.gov/tiers.
