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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 U.S. federal government collected $4.67 trillion in taxes but distributed it unevenly among states, with 19 states, including New York and California, paying more than they received and others like Virginia and Alabama seeing large net gains. This is significant as it highlights the disparity in financial contributions and benefits among states, with some footing a larger share of the federal bill while others receive more in return.
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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