Income taxes are highest in these states
Tax Day is right around the corner. Are state income taxes part of what you owe this year? Some states charge a flat rate; others use a scale where higher earners pay a larger share; some states’ residents are off the hook. State income taxes are often used to fund schools, roads, healthcare, and public assistance programs, so let’s take a closer look at these taxes.
- In 2023, the average American paid $1,395 in state income taxes. People in Oregon paid the most ($3,123 per person), followed by those in Massachusetts ($3,097) and New York ($2,970). Washington, DC, residents paid even more — an average of $4,466, though that was in local income taxes, not state income taxes.
- Nine states don’t collect income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. These states fund public services through other sources, such as property and sales taxes.
- Washington won’t stay on that list for long: just last month, its state legislature passed an income tax on earnings over $1 million. It’s set to take effect January 1, 2028.
- Tennessee had the lowest average state income tax — $0.41 per person. New Hampshire ($107) and Washington ($108) followed. How is that possible? New Hampshire repealed its income tax in 2025, meaning income taxes were still in this 2023 data (the most recent available). And while Washington doesn’t have an income tax yet, it has a capital gains tax that state law classifies as an excise tax. However, the Census Bureau reclassifies state taxes into standardized categories to make comparisons, and labels Washington’s capital gains revenue under “Individual Income Tax.” (This took some data sleuthing, and we really did geek out about it.)
- Another way to frame taxes is by burden, which measures the share of personal income paid in taxes. Oregon also had the highest state tax burden, with residents paying the state an average of 4.6% of their income. Delaware and New York tied for second at 3.6%.
How the federal government spends money
The federal government funds everything from retirement checks to military operations to local road projects. A large portion of those funds come from what taxpayers send in, either on Tax Day or with taxes on each paycheck. Here’s an overview of the government’s spending priorities.
- The federal government spent about $7.05 trillion in FY 2025 — roughly $20,600 per person. That’s 25% more than before the pandemic and three times what the government spent in 1980 (after adjusting for inflation).
- There are three types of federal spending: mandatory, discretionary, and net interest on the national debt. Mandatory spending is required by law. Congress can’t reduce mandatory spending levels without changing the underlying laws that govern them. On the other hand, Congress votes on discretionary spending levels each year and can adjust it based on national priorities.
- Mandatory spending comprises 60% of the federal budget, up from 45% in 1980. Social Security and Medicare, two of the highest-spending programs, are under this umbrella. Social Security accounted for 22.4% of fiscal year 2025 spending; Medicare comprised 14.1%. (We should note that both programs are primarily funded through payroll, not income, taxes.)
- Discretionary spending was 27% of the FY 2025 budget. Defense accounted for the highest percentage of this spending: 18.3%.
- Preliminary FY 2026 data shows spending reached $3.1 trillion through February. That’s 2.1% higher than the same point a year earlier.
All about taxes
In 2023, 30.5% of people who filed a tax return paid zero in federal income taxes. Also, the top 5% of earners paid nearly 60% of federal income tax collected that year. We’ve tracked that data, and have explanations of what the One Big Beautiful Bill Act changed in the tax code, and when each piece of it kicks in. See the data
Data behind the news
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The Supreme Court heard arguments regarding birthright citizenship last week.
A different federal judge permanently blocked the Trump administration’s executive orderto end federal funding for National Public Radio and the Public Broadcasting Service. However, Congress already passed a rescission packagepursuant to the order, pulling back the organizations’ federal funding. This article from our archives explains recissions packages.
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One last fact
The Michigan Wolverines and UConn Huskies are competing for the NCAA Men’s Basketball Championship (and someone might have already won by the time you receive this). But we at USAFacts have been holding our own data Final Four between each team’s home state. Here’s how the population of the states in the men’s Final Four changed over the last year. (You can see more population metrics here, including your state!)