Which states bring in the most non-tax revenue?
Thirty-seven states get most of their annual revenue from non-tax sources, such as federal funding, a slight drop from 2021.
Alaska received the largest share of its general revenue — 72.4% — from non-tax sources in 2023, according to the Census Bureau. Louisiana received 65.1% of general revenue from non-tax sources, and South Carolina received 64.7%.
The Census Bureau calculates states’ general revenue based on four categories:
- Tax revenue (income, sales, property taxes, licensing fees, and other taxes)
- Intergovernmental revenue (money from federal or local governments)
- Current charges (revenue from operating airports, educational institutions, hospitals, parking facilities, and more)
- Miscellaneous general revenue (investment earnings, sale of property, and other general revenue)
It does not include revenue from government-owned utilities, government-owned liquor stores, or social insurance trusts.
How do states collect revenues outside of taxes?
States receive revenue from a range of sources other than taxes, including funding from the federal government, fees, and other transactions such as property sales and interest earnings.
In 2023, the federal government provided a total of $1.1 trillion to states, accounting for 36.0% of all state general revenue that year.
Service charges and other miscellaneous non-tax sources of revenue accounted for 16.6% of states’ general revenues. These sources include any money generated by operating parking facilities, airports, hospitals, highways, parks and recreation, higher education institutions (including tuition and fees), natural resources, waste management, and more.
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Which states collect the highest proportion of non-tax revenue?
Thirty-seven states and Washington, DC, generated more than half of their general revenue from non-tax sources in 2023. That’s a slight drop from 2021, when 42 states received most of their revenue from non-tax sources. Alaska, Louisiana, and South Carolina had the largest proportions of non-tax revenue.
37 states and DC get most of their general revenue from non-tax sources.
Share of state government general revenue from non-tax sources, 2023
Where does Alaska collect revenue?
The federal government was the largest contributor to Alaska’s general revenue in 2023, providing 45.0% of the state’s general revenue. Alaska collected 27.6% of its general revenue from taxes, and the remaining 27.4% came from charges and miscellaneous fees.
Alaska doesn’t have an individual income tax or state sales tax; instead, a large portion of its annual budget comes from the petroleum industry. According to the Alaska Department of Revenue, in 2023, petroleum revenues were $3.1 billion, or 44% of state general fund revenue. That figure includes revenue from taxes — including severance, property, and corporate income taxes — and royalty payments paid to the state-owned Alaska Permanent Fund Corporation for petroleum extraction, along with dividends from the fund paid out to residents each year.
Where does Louisiana collect revenue?
Louisiana collected 50.1% of its general revenue from the federal government in 2023. Just over a third of the state’s revenue — 34.9% — came from taxes. Sales taxes were Louisiana’s largest tax revenue category, amounting to $7.9 billion, or 17.8% of state general revenue. Higher education charges were the state’s largest non-tax revenue category aside from federal contributions, at 4.0% of general revenue.
Where does South Carolina collect revenue?
In 2023, South Carolina received 39.5% of its general revenue from the federal government. Fees and other non-tax revenues amounted to 24.5% of general revenue, including 8.5% of general revenue from charges at public hospitals from patients, private insurance companies, and public insurance programs (such as Medicare).
Total taxes in South Carolina made up 35.3% of general revenue; sales tax (16.8%) and individual income tax (13.1%) account for the bulk of tax revenue in 2023.
Which states collect the lowest proportion of non-tax revenue?
Nevada had the lowest share of non-tax revenue in 2023, bringing in 41.4% of its revenue from non-tax sources. North Dakota was next, with 41.6%, followed by Connecticut (42.4%), Minnesota (42.6%) and Illinois (43.5%).
Explore your state’s non-tax revenue data
State government general revenue and percent non–tax revenue, 2023
How did the pandemic affect state revenue?
Total state general revenues rose in 2020 and 2021, driven by increases in federal funding. In 2020, state tax revenues declined slightly from 2019, while money from the federal government increased 18.0% (adjusted to 2023 dollars). Federal dollars for pandemic relief provided by the CARES Act increased eight states’ federal funding by more than 50%.
In 2021, revenue from the federal government increased another 15.4%, while tax revenues increased 15.3% (adjusted for inflation). Then between 2022 and 2023, revenue from the federal government decreased by 6.3%, in part because of the winding down of pandemic relief programs.
In 2023, states received nearly $1.1 trillion from the federal government, $1.4 trillion in tax revenues, and $504.3 billion in other charges.
State revenue from the federal government increased by 37% from 2017 to 2023.
Total state government general revenue by source of funds, 2017–2023
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