Where States Get Their Money

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.