Economy articles
US Federal Taxes: How the US Federal Government is Funded
The federal government collected $4.9 trillion in revenue in 2024, 99% of which came from taxes. How much does the average American pay? And who pays the most?
What do your federal taxes pay for?
Enter some of your details into this calculator and get a tax receipt showing how much you spend on national defense, Medicare, and more.
How much do you pay in gas taxes?
Gas prices are nearing $6.00 a gallon in some parts of the US, while other regions pay over two dollars less at the pump. How much are taxes adding to the equation?
Who doesn’t pay federal income taxes?
Whether someone owes federal income tax depends on their income, deductions, and credits. In 2023, 3 in 10 filers owed nothing.
How has TCJA impacted individual income taxes?
In 2025, the One Big Beautiful Bill Act expanded or made parts of the Tax Cuts and Jobs Act permanent. Here's how the TCJA has affected taxes since 2018.
What does it cost the IRS to collect taxes?
In 2024, it cost the IRS 36 cents to collect each $100.
Who pays the most income tax?
In 2023, the top 5% of earners collectively paid nearly $1.3 trillion in income taxes, or about 60% of the national total.
Which states have the highest and lowest income tax?
Oregon collected the most state income taxes in 2023, while nine states collected no income tax at all.
How much revenue do states make from marijuana taxes?
Cannabis taxes fund a wide range of public initiatives, from healthcare to law enforcement.
How much does the average American family pay in taxes?
Combining direct and indirect taxes, as well as taxes from state and local government, the average American family paid $17,902 in taxes in 2021.
How do corporations avoid paying taxes?
Corporations reduce their tax liability through a variety of ways, such as accelerated depreciation and profit shifting.
'Sin taxes' by state: Where do people pay the most and least in alcohol and tobacco taxes?
Across all 50 states and Washington, DC, the average annual revenue from alcohol taxes amounted to $21.67 per person in 2020.
How much money does the US federal government collect?
About $5.26 trillion in fiscal year (FY) 2025. This is about $15,400 per person in the US, however individual contributions vary based on income, spending, and other factors. Government revenue is the total amount of money received from individual and corporate taxes, and other sources that are used to pay for government spending.
Where do people pay the most and least in property taxes?
Owning land, homes, or other buildings can be expensive — here’s where people are paying more of their income on them.
Just the Facts about the US economy
How does the government measure the economy? By tracking GDP, unemployment numbers, and the prices people pay for goods and services.
How did the Inflation Reduction Act of 2022 change corporate taxes?
The Joint Committee on Taxation estimated that about 150 corporations would be subject to a new minimum corporate tax each year.
What is the federal government's budget deficit?
The federal government’s fiscal year (FY) 2026 budget deficit is about $953.6 billion as of April. A budget deficit occurs when the federal government spends more money than it brings in through taxes, customs duties, the sale of assets, and other revenues. When the government has a deficit, it borrows money by selling bonds and other securities in order to pay for it, adding to the national debt. A budget surplus, on the other hand, occurs when the government brings in more money than it spends.
Improving the timeliness, accessibility, and usefulness of tax data
USAFacts evaluates IRS tax data and offers independent, expert-informed recommendations to make tax statistics timelier, easier to access, and AI-ready.
How much revenue does the federal government collect from tariffs?
The federal government collected $194.9 billion in revenues from tariffs in FY 2025. This figure reflects revenue from tariffs and other import-related fees, also known as customs duties. Customs duties are taxes and fees paid by US importers and collected by US Customs and Border Protection on goods imported into the country, which generate revenue for the federal government.
How do marijuana laws differ between states?
As of April 2026, recreational cannabis is legal in 24 states and Washington, DC, while medical marijuana has been legalized in an additional 16 states.
What is the average US tariff rate overall?
About 9.9% in January 2026. The average effective tariff rate shows how much the US collects in customs duties as a percentage of the total value of imported goods. However, imports may have different tariff rates (or none at all) depending on factors like country of origin, product type, trade agreements, and much more.
What are capital gains? How are they taxed?
About two-thirds of individual capital gains subject to tax are from selling corporate stock; the remainder is from property sales.
How much debt does the US have?
The US has $39.2 trillion in debt as of May 2026. The federal government borrows money when its spending and investments cannot be funded by federal revenue alone; this debt enables the government to pay for programs and services when funds aren’t immediately available.
What does the Department of the Treasury (TREAS) do?
The Department of the Treasury (Department of Treasury, TREAS) is a cabinet-level executive branch agency responsible for overseeing economic conditions and ensuring the financial security of the United States. The department's functions include advising the president on economic matters, managing federal finances, collecting taxes through the Internal Revenue Service, producing currency, and supervising national banks. It was established in 1789 and is the second-oldest department in the federal government.
How much does the US federal government spend?
The federal government spent $7.04 trillion in fiscal year (FY) 2025. This averages about $20,600 per person in the US. The amount the government can spend depends on the amount of revenue it collects (e.g., through taxes, customs duties, and other sources). If it has to spend more revenue than it brings in, it borrows the funds, creating debt.
US trading partners, imports and exports, and how tariffs factor in
In 2024, the US imported $4.1 trillion and exported $3.2 trillion in goods and services. Higher tariffs can raise prices and the impact on US jobs is a complex issue. Join Steve as he talks through US trade, tariffs and their impact, US trade partners, trade agreements, and more.
How much does it cost to own a car?
Fixed expenses, including car insurance, license and registration fees, taxes, depreciation, and more, make up the bulk of car ownership costs.
How much revenue does sports betting generate?
Sports betting is legal in 39 states and in Washington, DC, generating millions in tax revenue.
What causes high gas prices?
Gas prices change based on the cost of crude oil, refining, distribution and marketing, and federal, state, and local taxes.
How much money does the government collect per person?
Individual income taxes accounted for more than half of total revenues for the federal government in 2022.
What are tariffs and how do they work?
Tariffs are taxes paid by firms importing goods internationally. They are used as a tool to control global trade.
How long do people wait for subsidized housing in the US?
People waited two years and one month, on average, for subsidized housing in 2025. That’s a 7.4% decrease since 2024, when recipients spent 2 years and 3 months on waiting lists before moving in to subsidized housing.
How much debt does the average person in the US owe?
Around $63,300 as of the third quarter of 2025. Compared to the previous quarter (April through June 2025), the average adult owed $136 less after adjusting for inflation, reflecting slight shifts in household borrowing patterns. This debt, often referred to as “household debt,” represents the total amount owed by individuals for obligations such as mortgages, student loans, credit cards, and auto loans.
Which states contribute the most and least to federal revenue?
In 2024, Californians paid about $275.6 billion more to the federal government than they received.
What is the money supply, and how does it relate to inflation?
How much money is there? The Federal Reserve keeps track.
Where do people pay the most and least in sales tax?
Hawaii and Washington lead the nation in how much sales tax they collect from residents.
The State and Local Tax (SALT) deduction cap: explained
SALT deductions are mostly claimed by those making $100,000 or more. How does the cap work?
What is the “tampon tax”?
Twenty-eight states do not charge sales tax on menstrual products.
State tax revenue was down 4.4% in the first nine months of 2020
The largest revenue drop was in the second quarter, as many states delayed income tax collection.
How did the child tax credit change over time?
The American Rescue Plan temporarily increased the child tax credit per child and expanded eligibility for lower income families. Now the credit is back to pre-pandemic levels.