Where My Taxes Go

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.

Spending per resident
$7,491
#38 of 50 · all states $8,834
State taxes per resident
$4,407
#21 of 50
From federal funds
40%
of general revenue · #17 of 50

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.

FunctionSpendingShare
Public welfare 36% in all states$20.6B39.9%
Education 32% in all states$19.6B38.0%
Highways 6% in all states$4.1B8.0%
Other 9% in all states$3.2B6.2%
Government administration 4% in all states$931.8M1.8%
Prisons and corrections 2% in all states$896.0M1.7%
Public health 3% in all states$802.2M1.6%
Natural resources 1% in all states$501.1M1.0%
State police 1% in all states$401.6M0.8%
Interest on debt 1% in all states$264.5M0.5%
Hospitals 5% in all states$180.8M0.4%
Parks and recreation 0% in all states$77.8M0.2%
Per resident, rank and change for every function
FunctionIndiana per residentAll states per residentRank (1 = most)Change since 2022
Education$2,847$2,78724 of 50+5%
Public welfare$2,990$3,19322 of 50+5%
Hospitals$26$40847 of 50+23%
Public health$117$28849 of 50-9%
Highways$597$53420 of 50+4%
State police$58$7435 of 50+7%
Prisons and corrections$130$19746 of 50+7%
Natural resources$73$11235 of 50+14%
Parks and recreation$11$2943 of 50+31%
Government administration$135$32149 of 50+4%
Interest on debt$38$10946 of 50-6%
Other$466$78241 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 toOf $1,000Of $2,500Of $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)

SourceRevenueShare
Federal funds$25.1B40.4%
Individual income tax$11.7B18.8%
General sales tax$11.0B17.7%
Selective sales taxes (fuel, tobacco, alcohol, insurance)$5.5B8.9%
Charges and fees (tuition, hospitals, tolls)$4.2B6.8%
Interest, lottery and other$2.5B4.1%
Corporate income tax$1.2B2.0%
Licenses (vehicles, businesses, hunting)$865.4M1.4%
Property tax$15.5M0.0%
Other taxes (severance, estate and others)$1.7M0.0%

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

All 50 states

Sources and notes

  1. 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.
  2. 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.
  3. Fiscal years end on 30 June in 46 states; New York (31 March), Texas (31 August), and Alabama and Michigan (30 September) differ.
  4. Population: U.S. Census Bureau, Vintage 2025 estimates, July 2023.