How Does Your State Get Its Tax Revenue?

In most cases, directly from you.

If you like data, graphics, and learning more about taxes, you’re going to love this report from the Pew Charitable Trusts:

How States Raise Their Tax Dollars

Click through to study the infographic in full; it specifies what percentage of taxes come from personal income tax (a lot, unless you’re in a state with no income tax), what percentage comes from general sales tax (a lot, unless you’re in a state with no sales tax) and what percentage comes from corporate income tax (not so much).

And yes, states are more reliant on our tax dollars than ever:

In fiscal year 2016, the share of total state tax revenue from personal income taxes grew to its largest percentage in at least 65 years. The share from general sales taxes also increased from the previous year, while those from corporate and severance taxes edged down.

In Missouri—which I’m pulling as an example because that’s where I grew up—only 2.9 percent of state tax revenue comes from corporate income tax. 49.2 comes from personal income tax, and 28.9 comes from general sales tax.

In Washington, where I live now, well… there’s no personal or corporate income tax (though businesses do pay gross receipts/excise tax), which means 60.9 percent of the state’s tax revenue comes from sales tax.

I hadn’t realized that so much tax revenue came directly from individuals, especially when compared to corporations. But it makes sense—there are many more individuals than there are corporations, and that’s before we get into corporate tax loopholes—and it’s worth taking a look at the infographic to see where your state gets its money.

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