Federal pandemic aid for states continued to inflate the percentage of federal dollars in state government revenue in fiscal year 2023. The share decreased by less than a percentage point from the prior year, but at 36%, it remained high compared with pre-pandemic levels. Federal funds were the largest revenue source in just 13 states, with most states primarily relying on state tax revenue. Tax collections accounted for 46.7% of overall state revenue, down 1.6 percentage points from fiscal 2022, a reversion toward their long-term trend after the pandemic-induced recession and ensuing revenue wave.
This infographic displays each state’s revenue by major categories.
Percentage of State Revenue by Source, FY 2023
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%
Notes: This analysis uses “general revenue,” which accounts for all state revenue sources except state-owned liquor stores, utilities, and insurance trust funds. Montana collected more in taxes than it received in federal revenue, but these sources’ shares appear equal because of rounding. New Hampshire received more federal revenue than it collected in taxes, but these sources’ shares appear equal because of rounding.
Source: U.S. Census Bureau’s 2023 Annual Survey of State Government Finances
