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U.S. Federal Tax Breakdown: Which 15 States Are Paying the Most
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Subscribe11 JUN 2025
In 2023, the US federal government collected $4.67 trillion in taxes, with 19 states, including New York, California, Texas, and New Jersey, contributing more than they received in return, totaling a net outflow of over $300 billion. Conversely, states like Virginia, Alabama, Arizona, and South Carolina gained significantly more, indicating a disparity in tax contributions and federal spending among states.
In 2023, the U.S. federal government collected $4.67 trillion in taxes and sent $4.56 trillion back to states and residents. But here’s the twist: that money didn’t return evenly. Nineteen states paid more than they got back. Leading the pack was New York, which sent $89 billion more to Washington than it received. Add in California (-$78B), Texas (-$67B), and New Jersey (-$70B), and you’ve got a combined net outflow of over $300 billion from just four states. Meanwhile, some states came out way ahead. Virginia received $79 billion more than it paid in, thanks to its heavy defense footprint. Others like Alabama (+$41B), Arizona (+$40B), and South Carolina (+$37B) also saw big net gains.
Where does all this money come from? Mostly from people like you. In fact, 88% of all federal revenue came from individual income and payroll taxes, with another 10% from corporate taxes. And where does it go? Think Medicaid ($607B), Social Security ($1.4T), SNAP ($119B), education ($50B), and transportation ($86B)—plus direct payments to individuals. Bottom line? Some states are footing a much larger share of the federal bill, while others are cashing out the check.
Until next time…
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