What is the most common biggest tax source for states?

Property tax. Counting state and local governments together, property tax is the single largest tax source in 25 states, general sales tax is largest in 16, individual income tax in 7, and license taxes (Delaware) and severance-heavy 'other' taxes (North Dakota) lead in one state each.

Why is Delaware's biggest tax a license tax?

More than half of large US companies are incorporated in Delaware, and they pay its corporate franchise tax and entity fees. The Census Bureau classifies those as license taxes, which make up about a third of Delaware's state and local tax revenue.

What counts as 'other taxes'?

Mostly severance taxes on extracting oil, gas, coal and minerals, plus estate, gift and document taxes. That is why energy states such as North Dakota, New Mexico, Alaska and Wyoming have large 'other' shares.

Where Does Your State's Tax Money Come From?

Every state funds schools, roads and police from a different mix of taxes. Some rely on homeowners, some on shoppers, some on paychecks, and a few on oil wells. Here's the split for all 50 states, counting state and local governments together.

states where property tax is the biggest source

states where general sales tax is the biggest source

64%

of New Hampshire's tax revenue comes from property tax, the highest share in the US

Biggest Tax Source by State

Each tile shows a state's single largest source of combined state and local tax revenue, and that source's share of the total. Select a state to see its full breakdown.

Your State vs the Average

State

All 50 States, Side by Side

Each bar is 100% of a state's combined state and local tax revenue. Sort by any tax to see who leans on it most.

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Show the full data table

Source: U.S. Census Bureau, 2024 State and Local Government Finances, combined state and local tax revenue. Shares are rounded to whole percentages, as compiled by Visual Capitalist ("Each State's Biggest Tax Revenue Source"). Small slices are approximate and rows may not add to exactly 100%. "Average state" is the simple average of the 50 state shares, not weighted by population or dollars.

The States That Stand Out

New Hampshire: the property-tax state

New Hampshire has no general sales tax and no tax on wages, so property tax carries 64% of the load, including a statewide education property tax. Its 14% corporate share comes from the Business Profits Tax.

Washington and Tennessee: sales-tax states

With no broad income tax, Washington (49%) and Tennessee (48%) raise nearly half their revenue from general sales taxes, the highest shares in the country. Census counts Washington's business & occupation gross-receipts tax as a general sales tax.

Maryland and Oregon: income-tax states

Maryland (36%) leans hardest on income tax, partly because its counties and Baltimore City add their own local income tax on top of the state rate. Oregon (34%) has no retail sales tax at all.

Delaware: the incorporation state

About a third of Delaware's revenue is license taxes, mostly the franchise tax and fees paid by the more than a million businesses incorporated there. Delaware has no sales tax.

North Dakota, New Mexico, Alaska, Wyoming: oil and gas

"Other taxes" are mostly severance taxes on oil, gas, coal and minerals. They make up 41% of North Dakota's tax revenue, 26% in New Mexico, 24% in Alaska and 20% in Wyoming. That money rises and falls with energy prices.

Nevada: casinos count as sales

Nevada's 20% selective-sales share is the nation's highest. Gaming taxes are classified as selective sales taxes on amusements, alongside the usual fuel, tobacco and alcohol taxes.

How to Read a State's Tax Mix

What each tax category actually covers, and why the mix matters.

The seven categories

Property taxes: mostly local taxes on homes, land and business property. They fund the bulk of K–12 schools in most states.
General sales taxes: broad taxes on retail purchases, plus gross-receipts taxes on business turnover such as Washington's B&O tax and Ohio's Commercial Activity Tax.
Selective sales taxes: taxes on specific goods and services, such as gasoline, tobacco, alcohol, utilities, insurance premiums and gambling.
Individual income taxes: state income taxes on wages and investment income, plus local income taxes in states like Maryland, Ohio, Pennsylvania and New York.
Corporate income taxes: taxes on business profits.
License taxes: vehicle registration, driver, hunting and professional licences, and corporate franchise or entity fees.
Other taxes: severance taxes on natural resources, estate and gift taxes, and real-estate transfer or document taxes.

Why the mix matters

A state's tax mix decides who pays and how stable the revenue is. Property tax is the most predictable, because assessed values change slowly, but it falls hardest on homeowners and renters in high-value areas. Sales taxes are easy to collect and are partly paid by tourists, as in Florida, Nevada and Hawaii, but they take a bigger share of income from lower-income households. Income taxes rise with ability to pay, yet they swing sharply in recessions and stock-market downturns, which is why California's budget can go from a surplus to a deficit in a single year.

Severance taxes are the most volatile of all. When oil prices fell in 2015–16 and again in 2020, North Dakota, Alaska and Wyoming saw revenue drop sharply, which is why those states keep large rainy-day and permanent funds.

States without an income tax still collect plenty of tax

Nine states do not tax wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Washington taxes only certain capital gains, and New Hampshire's small tax on interest and dividends (the 2% in its 2024 figures) ended in 2025. These states make up the difference elsewhere. Texas gets 41% of its tax revenue from property taxes, Washington 49% from sales taxes, and Alaska relies on oil. Low income tax does not necessarily mean low overall taxes. Compare total state spending per resident on our state budgets page or the state leaderboards.

Frequently asked questions

What is the most common biggest tax source?

Property tax. It is the single largest source in 25 states. General sales tax leads in 16, individual income tax in 7, and Delaware (license taxes) and North Dakota (severance-driven "other" taxes) are the two outliers.

Does this include local taxes?

Yes. The figures combine state government and all local governments in each state: counties, cities, school districts and special districts. That is why property tax, which is mostly local, looks so large.

Why do Florida and Pennsylvania show a tie?

Florida's property and general sales taxes both round to 37%, and Pennsylvania's property and income taxes both round to 26%. The "biggest source" shown follows the source's ranking on unrounded figures, where property narrowly leads in Florida and income tax narrowly leads in Pennsylvania. West Virginia's income tax likewise edges out property tax at about 23% each.