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

fiscal 50
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Fiscal 50: State Trends and Analysis

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Data Visualization

Fiscal 50: State Trends and Analysis, an interactive resource from The Pew Charitable Trusts, allows you to sort and analyze data on key fiscal, economic, and demographic trends in the 50 states and understand their impact on states’ fiscal health.

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%).