How States Raise Their Tax Dollars
FY 2023
Tax collections typically make up almost half of state government revenue. In fiscal year 2023, two-thirds of states’ total tax dollars came from levies on personal income (33.1%) and on general sales of goods and services (32.3%).
Broad-based personal income taxes were the greatest source of tax dollars in 28 of the 41 states that impose them, with the highest share in Oregon (63.6%), and the lowest in North Dakota (8.2%). General sales taxes were the largest source in 16 of the 45 states that collect them. Florida was most reliant on these taxes; they made up 64.6% of the state’s tax revenue. Six states received most of their fiscal 2023 revenue from sources other than personal income or general sales taxes: severance taxes in Alaska, New Mexico, and North Dakota; license taxes in Delaware; corporate income taxes in New Hampshire; and property taxes in Vermont.