Where state taxes goIndiana, fiscal 2023
Where do my state taxes go in Indiana?
Of every dollar Indiana's state government spends, 40¢ goes to public welfare and 38¢ to education.$51.5 billion of general spending in fiscal year 2023 (July 2022 to June 2023): $7,491 per resident, 38th highest of the 50 states. 40% of the money came from the federal government.
Where the money goes
General spending rose 4.5% on fiscal 2022 ($49.3 billion). The table under the chart has each function per resident, its rank and its change.
Public welfare and education take 78% of Indiana's spending
State government general expenditure by function, fiscal year 2023 (July 2022 to June 2023). Small print: the share in all 50 states combined.
| Function | Spending | Share |
|---|---|---|
| Public welfare 36% in all states | $20.6B | 39.9% |
| Education 32% in all states | $19.6B | 38.0% |
| Highways 6% in all states | $4.1B | 8.0% |
| Other 9% in all states | $3.2B | 6.2% |
| Government administration 4% in all states | $931.8M | 1.8% |
| Prisons and corrections 2% in all states | $896.0M | 1.7% |
| Public health 3% in all states | $802.2M | 1.6% |
| Natural resources 1% in all states | $501.1M | 1.0% |
| State police 1% in all states | $401.6M | 0.8% |
| Interest on debt 1% in all states | $264.5M | 0.5% |
| Hospitals 5% in all states | $180.8M | 0.4% |
| Parks and recreation 0% in all states | $77.8M | 0.2% |
Per resident, rank and change for every function
| Function | Indiana per resident | All states per resident | Rank (1 = most) | Change since 2022 |
|---|---|---|---|---|
| Education | $2,847 | $2,787 | 24 of 50 | +5% |
| Public welfare | $2,990 | $3,193 | 22 of 50 | +5% |
| Hospitals | $26 | $408 | 47 of 50 | +23% |
| Public health | $117 | $288 | 49 of 50 | -9% |
| Highways | $597 | $534 | 20 of 50 | +4% |
| State police | $58 | $74 | 35 of 50 | +7% |
| Prisons and corrections | $130 | $197 | 46 of 50 | +7% |
| Natural resources | $73 | $112 | 35 of 50 | +14% |
| Parks and recreation | $11 | $29 | 43 of 50 | +31% |
| Government administration | $135 | $321 | 49 of 50 | +4% |
| Interest on debt | $38 | $109 | 46 of 50 | -6% |
| Other | $466 | $782 | 41 of 50 | -4% |
U.S. Census Bureau, Annual Survey of State Government Finances, 2023.
On your state tax bill
Your state taxes split in proportion to Indiana's 2023 general spending. State spending is funded by taxes, federal funds and fees together, so this shows how a tax dollar divides, not which dollar pays for what.
| Goes to | Of $1,000 | Of $2,500 | Of $5,000 |
|---|---|---|---|
| Public welfare | $399 | $998 | $1,996 |
| Education | $380 | $950 | $1,901 |
| Highways | $80 | $199 | $399 |
| Other | $62 | $155 | $311 |
| Government administration | $18 | $45 | $90 |
| Everything else | $61 | $152 | $303 |
Where the money comes from
Indiana collected $11.7 billion in individual income tax in fiscal 2023, 39% of its tax revenue.
Federal funds are Indiana's largest source of general revenue
State government general revenue by source, fiscal year 2023 (July 2022 to June 2023)
| Source | Revenue | Share |
|---|---|---|
| Federal funds | $25.1B | 40.4% |
| Individual income tax | $11.7B | 18.8% |
| General sales tax | $11.0B | 17.7% |
| Selective sales taxes (fuel, tobacco, alcohol, insurance) | $5.5B | 8.9% |
| Charges and fees (tuition, hospitals, tolls) | $4.2B | 6.8% |
| Interest, lottery and other | $2.5B | 4.1% |
| Corporate income tax | $1.2B | 2.0% |
| Licenses (vehicles, businesses, hunting) | $865.4M | 1.4% |
| Property tax | $15.5M | 0.0% |
| Other taxes (severance, estate and others) | $1.7M | 0.0% |
U.S. Census Bureau, Annual Survey of State Government Finances, 2023.
Federal money and Indiana
Federal taxes paid by Indiana residents and businesses: how much federal tax Indiana pays. Federal spending in the state: federal money in Indiana. For federal taxes, see where your federal taxes go.
Questions and answers
- Where do my state taxes go in Indiana?
- Of every dollar Indiana's state government spent in fiscal year 2023 (July 2022 to June 2023), 40¢ went to public welfare, 38¢ to education and 8¢ to highways. Total general spending was $51.5 billion.
- How much does Indiana spend per person?
- $7,491 per resident in fiscal 2023, 38th highest of the 50 states (all states together: $8,834).
- How much of Indiana's budget comes from the federal government?
- 40% of general revenue ($25.1 billion) in fiscal 2023 came from the federal government, the largest part for Medicaid. By that share Indiana ranks 17th of the 50 states (1st = most reliant). Taxes were 49%.
- Does Indiana have a state income tax?
- Indiana collected $11.7 billion in individual income tax in fiscal 2023, 39% of its tax revenue.
- How much does Indiana spend on education and Medicaid?
- Education $19.6 billion (38%) and public welfare, mostly Medicaid, $20.6 billion (40%) in fiscal 2023. Education spending includes aid to local school districts, which then add their own property-tax money.
- How much debt does Indiana's state government have?
- $8.2 billion at the end of fiscal 2023, $1,197 per resident. Local governments' debt is separate.
Other states
- Illinois$9,063 per resident
- Iowa$8,415 per resident
- Kentucky$9,815 per resident
- Ohio$8,108 per resident
- Minnesota$9,740 per resident
- Missouri$7,147 per resident
Sources and notes
- U.S. Census Bureau, Annual Survey of State Government Finances, "ASFIN State Totals" tables for 2022 and 2023 (Last Revised: September 16, 2025). Thousands of dollars in the source. Public domain.
- General expenditure is the state government's spending excluding its utilities, liquor stores and insurance trust funds (state employee pensions and unemployment benefits). It includes aid passed to local governments.
- Fiscal years end on 30 June in 46 states; New York (31 March), Texas (31 August), and Alabama and Michigan (30 September) differ.
- Population: U.S. Census Bureau, Vintage 2025 estimates, July 2023.