How States Raise Their Tax Dollars
Taxes make up about half of state government revenue, with the bulk coming from levies on personal income and general sales of goods and services. Broad-based personal income taxes are the greatest source of tax dollars in 28 of the 41 states that impose them, with the highest share—69.6 percent—in Oregon. General sales taxes are the largest source in 17 of the 45 states that collect them. Texas is the most reliant on these taxes at 61.6 percent.
In fiscal year 2016, the share of total state tax revenue from personal income taxes grew to its largest percentage in at least 65 years. The share from general sales taxes also increased from the previous year, while those from corporate and severance taxes edged down.
This infographic illustrates the sources of each state’s tax revenue, showing percentages for the two largest streams. See downloadable data for other percentages.
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