State Contributions to Federal Revenue

“Which states contribute the most and least to federal revenue?” USAFacts

All states—and their taxpayers—send money to federal coffers. The government distributes much of this back to states, but some receive more money than they contributed. This shapes how money flows through Social Security, Medicaid, and infrastructure projects nationwide.  

• In 2023, the federal government collected $4.67 trillion in taxes and redistributed $4.56 trillion back to states and residents, mostly through programs like Social Security and Medicaid but also through sources like transportation funds and government contracting. 

• Nineteen states paid the federal government more than they received. New Yorkers paid about $89 billion more to the federal government than they received. Meanwhile, Virginians received about $79 billion more. 

Source: IRS, USASpending.gov – Get the data – Embed – Download image – Download SVG

That amounts to a differential of $105 billion, or about $314 per person, in favor of the federal government. It’s a relatively small amount at the national level, but a different picture at the state level, where some states contribute or receive much more than others.

• On average, each US resident contributed around $14,000 to federal revenue in 2023. 
   
• Delaware paid the most in overall federal taxes per person: $24,575 per resident. The state has some of the nation’s highest rates of business creation and, therefore, the highest share of federal revenue from business income taxes. 
  
• Washington, DC, contributed $54,612 per person to the federal government — more than double any state. It also received $74,361 per person from the federal government, the most in the country, primarily due to defense and transportation funding. 

“Which states contribute the most and least to federal revenue?” USAFacts