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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