How States Raise Their Tax Dollars

FY 2019

How States Raise Their Tax Dollars, FY 2019

Note: this data has been updated.

Taxes make up about half of state government revenue, with two-thirds of states’ total tax dollars coming from levies on personal income (37.9%) and general sales of goods and services (30.9%).

Broad-based personal income taxes are the greatest source of tax dollars in 30 of the 41 states that impose them, with the highest share—70.5%—in Oregon. General sales taxes are the largest source in 15 of the 45 states that collect them. Florida is the most reliant on these taxes, at 62.5%. Other sources bring in the most tax revenue in a handful of states: severance taxes in Alaska and North Dakota, property taxes in Vermont, license taxes and fees—such as franchise taxes that companies pay to incorporate in a state—in Delaware, and selective sales taxes on particular goods and services—such as tobacco and hotel rooms—in New Hampshire.

This infographic illustrates the sources of each state’s tax revenue.

Mix of Tax Sources by State, FY 2019

Select revenue sources below to highlight them and resort the chart:

Personal income
General sales
Selective sales
Licenses
Corporate income
Property
Severance
Other
0%25%50%75%100%0%25%50%75%100%

Note: Unlike 41 states with broad-based personal income taxes, New Hampshire and Tennessee tax only certain dividend and interest income. Tennessee’s tax will be phased out in 2021.

Source: U.S. Census Bureau’s 2019 Annual Survey of State Government Tax Collections

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Fiscal 50: State Trends and Analysis

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Data Visualization

Fiscal 50 is an interactive platform that provides clear, data-driven portraits of state fiscal conditions. Users can view, sort, and analyze data on key trends that shape states’ fiscal health now and over the long term. Fiscal 50 also features research and analysis to help users understand how these trends interact and fit together—and how they relate to real-time developments playing out in state capitols across the country.

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Where States Get Their Money, FY 2021

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The portion of state government revenue coming from federal dollars remained inflated by billions in COVID-19 pandemic relief aid in fiscal year 2021. The share increased by less than a percentage point from fiscal year 2020 levels but still set a record at 36.7%.