North Carolina Reveals 2026 County Tier Designations, 18 Counties Shift

North Carolina Unveils New County Tier Designations for 2026

In a move that could significantly impact economic development initiatives, the North Carolina Department of Commerce has released the updated county tier designations for 2026. These designations are a crucial component in several state-level programs designed to bolster economic growth and stability.

A total of eighteen counties in North Carolina will see changes in their tier status for the upcoming year.

Among those ascending to a less distressed economic tier are the counties of Beaufort, Camden, Davie, Graham, Macon, Montgomery, Randolph, Stanly, and Surry.

Conversely, counties such as Buncombe, Burke, Granville, Haywood, Henderson, Jones, Madison, Pasquotank, and Yancey will shift to a more distressed tier ranking.

The tier rankings, mandated by state law, are designed following the criteria set out by the North Carolina General Assembly in General Statue §143B-437.08. This statute requires an evaluation of four key economic indicators for each of North Carolina’s 100 counties: unemployment rate, median household income, population growth, and assessed property value per capita. Each county is then classified into one of three tiers, with Tier 1 representing the most economically distressed counties and Tier 3 representing the least.

The established methodology ensures that 40 counties are classified as Tier 1, another 40 as Tier 2, and the remaining 20 as Tier 3.

These tier designations are not just a marker of economic status but also influence eligibility and guidelines for various grant programs administered by N.C. Commerce. Programs like the One North Carolina Fund, building reuse grants, and water and sewer infrastructure grants rely on these designations. Additionally, the state’s performance-based Job Development Investment Grant (JDIG) program uses tier rankings to direct funds into the Industrial Development Fund – Utility Account, targeting infrastructure improvements in economically struggling areas within the state.