How States Raise Their Tax Dollars
Taxes are the largest source of state government funding, making up almost half of combined state revenue. Most states obtain the bulk of their tax revenue from levies on personal income and sales of goods and services. Broad-based personal income taxes comprise the greatest share of tax revenue in 29 of the 41 states that impose them, with the highest share—69.1 percent—in Oregon. General sales taxes are the largest source in 15 of the 45 states that collect them; Texas was most reliant at 61.1 percent. This infographic illustrates the sources of each state’s tax revenue, showing percentages for the two largest streams.
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