Which states receive the most federal aid vs taxes paid?
Minnesota, New Jersey, Delaware, Illinois and Florida are least dependent on the federal government. These states all contribute multiples more to the federal government than they receive, with residents paying at least $5 in taxes for every $1 in direct support received from the federal government.
Alaska. Alaska is the most federally dependent state, as over 57% of the state's revenue comes from federal funding.
Democratic-leaning blue states tend to be wealthier and pay more to the federal government than they get. In contrast, Republican-leaning red states tend to have less wealth and receive more federal government funds than they pay.
| Rank | State federal district or territory | Revenue per capita (est.) |
|---|---|---|
| 1 | California | $10,408 |
| 2 | Texas | $10,204 |
| 3 | New York | $13,659 |
| 4 | Florida | $8,762 |
Federal dollars account for one-third of the Texas state budget. Federal expenditures in Texas are one and a half times as much as what our state and local government revenues pay for, combined. Federal dollars account for one-third of the Texas state budget and one-tenth of preK-12 investments.
For example, according to the Tax Foundation study, California paid $8,028 per person in federal taxes, ranking the state 9th on this measure. Coupled with low per-person expenditures, California receives less in federal expenditures compared to what it pays in federal taxes relative to other states.
| Rank | State | Ratio of Federal Funding to Income Taxes Paid |
|---|---|---|
| 1 | West Virginia | 2.36 |
| 2 | New Mexico | 1.87 |
| 3 | Mississippi | 2.53 |
| 4 | Alabama | 1.25 |
| # | State | Federal Aid Per Capita (2021) |
|---|---|---|
| 4 | New York | $14,842 |
| 5 | Washington | $14,773 |
| 6 | California | $14,381 |
| 7 | Wyoming | $14,260 |
In fact, a substantial share of total net federal tax revenues comes from California — more than $378 billion in federal fiscal year 2016, according to analysis by the California Budget & Policy Center. Collectively, California taxpayers contribute $1 in every $8 in total net federal tax revenues (see chart below).
Fiscal 2017 data show: Montana reported the highest percentage of state revenue from federal funds (46.1 percent), taking the top spot for the first time since the late 1980s in its first full year of Medicaid expansion.
What is the most tax friendly state to live in?
According to the updated MoneyGeek analysis, the most “tax friendly” state overall was Nevada, where the median family owes about 3% of its income in taxes. Meanwhile, 13 states earned either a D or F grade for tax burdens. For some of those states, like Oregon, high personal income tax rates are to blame.
States with the lightest tax burden:
Alaska: 5.06% Delaware: 6.12% New Hampshire: 6.14% Tennessee: 6.22%
- Hawaii has the lowest property tax rate in the U.S. at 0.29%. ...
- Alabama is generally one of the more affordable states in the country. ...
- Colorado has the third-lowest property tax rate at 0.51%. ...
- Nevada has the fourth-lowest property tax rate in the nation (0.55%).
Right now, states including Utah and Connecticut are among the states that pay the most taxes and get the least back, even though all 50 states have a positive balance of payments, which means that they are all taker states, though historically, New York has been a donor state.
Limited State Income Tax and Reliance on Property Taxes:
Unlike other states that collect income taxes to fund public services and infrastructure, Texas relies heavily on property taxes as a primary source of revenue. The burden of funding essential services falls on homeowners, leading to higher property tax rates.
Though Texas has no state-level personal income tax, it does levy relatively high consumption and property taxes on residents to make up the difference. Ultimately, it has a higher effective state and local tax rate for a median U.S. household at 12.73% than California's 8.97%, according to a new report from WalletHub.
Minnesota, New Jersey, Delaware, Illinois and Florida are least dependent on the federal government. These states all contribute multiples more to the federal government than they receive, with residents paying at least $5 in taxes for every $1 in direct support received from the federal government.
Florida's current budget
Under the American Rescue Plan, Florida will receive $8.8 billion in direct state fiscal aid and $5.7 billion in local government aid from the federal government. As of January 2022, Florida had spent part of its state ARP funds on environmental protection programs and economic development.
Texans sent the federal government $261 billion in taxes in 2016, and the state government received $39.5 billion in grants in return, or about 15 percent of our total federal tax tab. Those grants were the state's second-largest revenue source, providing more than a third of its net revenue in that year.
Over the years, Florida TaxWatch has produced several reports examining how Florida fares, relative to other states, in receiving grants and aid from the federal government. Consistent with our past research, this new analysis shows Florida continues to receive far less than its fair share of federal grant dollars.
Which state received the most money per person?
Residents of the District of Columbia had the highest personal income per capita in 2022, at 96,728 U.S. dollars. Mississippi residents, on the other hand, had the lowest personal income per capita, at 46,248 U.S. dollars. What is personal income?
Sales and income tax make up the lion's share of state tax revenue, accounting for 89.5% of all taxes collected at the state level.
States with the Highest Welfare Recipients:
Based on SNAP data, California leads the pack with a staggering 1,911,000 SNAP households, followed closely by Florida (1,632,000) and Texas (1,595,000).
The ten states with the most welfare recipients are California, Florida, Texas, New York, Pennsylvania, Illinois, Georgia, Ohio, Michigan, and North Carolina. California is the state with the most welfare recipients, with 1,911,000 households benefiting from SNAP.
New York, the nation's most populous city, tops the list with about $4.3 billion on the way, according to allocation information published by the Treasury Department. Los Angeles County is slated for a $1.9 billion infusion and the city of Los Angeles will get about $1.3 billion.
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