State Government Spending
Total expenditures for all 50 states in the United States was nearly $3 trillion in 2021. General expenditures by function rounded in billions of dollars are listed in the table below.
Welfare and education are the largest expenditures by state governments. The expense on education is shared by states and counties, with the counties spending the majority of their funds on county public schools, and the 
states sharing the burden of financing post-secondary state education. The programs that experienced large increases in their budgets in recent years include education, welfare, hospitals, highways, government administration, and insurance trusts.
Public welfare expenditures include unemployment compensation payments, food stamps, school lunch subsidies, and other income maintenance programs.
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Total amounts may differ from the sum of the individual items due to rounding
Source: U.S. Census Bureau, summary table https://www.census.gov/data/tables/2021/econ/state/historical-tables.html
State Government Revenues
Total revenue for all 50 states in the United States was just over $3.1 trillion in 2021. Tax revenue for many of our states increased during most years through 2021. Revenues by type of tax or source rounded in billions of dollars are listed in the table below.
Federal grants are the largest source of income for all states, followed by insurance trust revenue. Of the tax sources, general and selective sales taxes and individual income taxes provide the most money for most of the states. All states collect sales taxes, except Alaska, Delaware, Montana, New Hampshire and Oregon. California has the highest statewide sales tax ranging from 7.25 – 10.25% (it varies by city and county). In parts of the state of New York the combined state and county sales tax is 9%.
Current charges are fees collected for specific services provided by state governments. Examples include highway toll assessments, school receipts (lunches, athletic contests, tuition, etc.) and hospital fees.
General sales taxes are consumption taxes on general items such as food, clothing, electronics, furniture, etc. Selective sales taxes are consumption taxes similar to federal excise taxes. They are levied on products such as gasoline, tobacco, alcoholic beverages, and insurance premiums.
| Revenue Item | 2004 Revenue in billions (rounded to the nearest billion) | 2007 Revenue in billions (rounded to the nearest billion) | 2011 Revenue in billions (rounded to the nearest billion) | 2015 Revenue in billions (rounded to the nearest billion) | 2018 Revenue in billions (rounded to the nearest billion) | 2020 Revenue in billions (rounded to the nearest billion) | 2021 (latest available) Revenue in billions (rounded to the nearest billion) |
| Federal Government Grants to the States | 394 | 430 | 594 | 605 | 687 | 846 | 1,017 |
| General Sales Tax | 198 | 236 | 234 | 286 | 320 | 341 | 370 |
| Selective Sales Tax | 95 | 109 | 132 | 145 | 165 | 171 | 179 |
| License Tax | 40 | 47 | 52 | 52 | 57 | 59 | 65 |
| Individual Income Tax | 196 | 266 | 259 | 336 | 390 | 386 | 504 |
| Corporate Income Tax | 30 | 53 | 40 | 49 | 48 | 52 | 89 |
| Utilities | 13 | 17 | 15 | 15 | 14 | 13 | 11 |
| Liquor Stores | 5 | 6 | 7 | 8 | 9 | 10 | 11 |
| Insurance Trusts | 375 | 520 | 592 | 327 | 584 | 472 | 397 |
| Other Taxes | 31 | 38 | 40 | 44 | 48 | 49 | 56 |
| Current Charges | 115 | 141 | 181 | 201 | 235 | 245 | 243 |
| Miscellaneous General Revenue | 94 | 130 | 120 | 137 | 152 | 159 | 182 |
| Total* | 1,587 | 1,993 | 2,266 | 2,204 | 2,708 | 2,803 | 3,123 |
*The numbers may not add up to the total due to rounding.
Source: US Census Bureau, summary table https://www.census.gov/data/tables/2021/econ/state/historical-tables.html
Local Government Spending
Below is a table with a summary of total estimated 2021 local government (counties and cities) spending in the United States. The single largest spending component by counties is education (public schools and community colleges). The United States Census Bureau reports that average education spending per pupil in the United States was approximately $13,000. New York tops the list with approximately $25k spent per pupil. Other high spenders were the District of Columbia ($23k), Connecticut ($21k), and New Jersey ($20.5k). States with the lowest per student expenditures were Idaho with $8k and Utah with $7k. Of the 100 largest school systems in the United States, Maryland had 4 in the top 10 with regards to per pupil spending.
Source: https://www.usgovernmentspending.com/local_spending_2021USrn
| Function | Total local U.S. government 2021 spending estimates in trillions of dollars |
| Pensions | 0.1 |
| Health Care | 0.2 |
| Education | 0.8 |
| Welfare | 0.1 |
| Protection | 0.2 |
| Other | 0.8 |
| Total | 2.1 |
Local Government Revenues
Counties receive revenue from a variety of sources. States provide general funding to counties. In addition, counties collect taxes, including (in most counties, not all) property taxes, sales taxes, individual income taxes, motor vehicle taxes, real estate transfer taxes, cable television franchise taxes, and hotel/motel taxes. State law dictates the tax that counties are allowed to levy. The property tax is the single most important source of revenue for counties. Nearly half of the states allow their counties to collect sales taxes, which is the second most important source of revenue for many counties. Individual income taxes (usually between 1% and 4%) are collected by cities, villages, and municipalities in only 16 states. Only in Indiana and Maryland do counties collect individual income taxes.
| Taxes | Total local U.S. government 2021 tax revenue estimates in trillions of dollars |
| Income | 0.1 |
| Social Insurance | 0.1 |
| Property (Ad Valorem) | 0.8 |
| Fees and Charges | 0.3 |
| Business and Other Revenue | 0.3 |
| Total | 1.6 |
Source: https://www.usgovernmentspending.com/local_spending_2021USrn
