Where States Get Their Money

FY 2021

Where States Get Their Money, FY 2021

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%. However, federal funds were the largest revenue source in fewer states (15) than a year earlier (18), as state tax collections started to rebound after the pandemic-induced recession. Tax collections accounted for 46.9% of overall state revenue and were the largest revenue source in 35 states, up from 32 the previous year.

This infographic displays a breakdown of each state’s revenue by major categories.

Percentage of State Revenue by Source, FY 2021

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

Taxes
Federal funds
Service Charges
Miscellaneous
Local funds
0%25%50%75%100%0%25%50%75%100%

Note: This analysis uses “general revenue,” which accounts for all state revenue sources except state-owned liquor stores, utilities, and insurance trust funds.

Source: U.S. Census Bureau's 2021 Annual Survey of State Government Finances

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Fiscal 50: State Trends and Analysis

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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.

How states raise their tax dollars
How states raise their tax dollars
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How States Raise Their Tax Dollars, FY 2021

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Taxes make up about half of state government revenue, with two-thirds of states’ total tax dollars coming from levies on personal income (39.8%) and general sales of goods and services (29.2%).