Where state taxes goIowa, fiscal 2023
Where do my state taxes go in Iowa?
Of every dollar Iowa's state government spends, 33¢ goes to public welfare and 31¢ to education.$27.1 billion of general spending in fiscal year 2023 (July 2022 to June 2023): $8,415 per resident, 30th highest of the 50 states. 34% of the money came from the federal government.
Where the money goes
General spending rose 5.2% on fiscal 2022 ($25.7 billion). The table under the chart has each function per resident, its rank and its change.
Public welfare and education take 65% of Iowa'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 | $9.0B | 33.4% |
| Education 32% in all states | $8.5B | 31.4% |
| Hospitals 5% in all states | $3.2B | 11.9% |
| Highways 6% in all states | $2.6B | 9.5% |
| Other 9% in all states | $1.3B | 4.7% |
| Government administration 4% in all states | $812.6M | 3.0% |
| Natural resources 1% in all states | $498.4M | 1.8% |
| Public health 3% in all states | $361.1M | 1.3% |
| Prisons and corrections 2% in all states | $343.7M | 1.3% |
| Interest on debt 1% in all states | $237.9M | 0.9% |
| State police 1% in all states | $149.4M | 0.6% |
| Parks and recreation 0% in all states | $34.9M | 0.1% |
Per resident, rank and change for every function
| Function | Iowa per resident | All states per resident | Rank (1 = most) | Change since 2022 |
|---|---|---|---|---|
| Education | $2,644 | $2,787 | 30 of 50 | +3% |
| Public welfare | $2,812 | $3,193 | 25 of 50 | +7% |
| Hospitals | $1,003 | $408 | 3 of 50 | +8% |
| Public health | $112 | $288 | 50 of 50 | -1% |
| Highways | $799 | $534 | 9 of 50 | +9% |
| State police | $46 | $74 | 47 of 50 | +8% |
| Prisons and corrections | $107 | $197 | 50 of 50 | +1% |
| Natural resources | $155 | $112 | 15 of 50 | +5% |
| Parks and recreation | $11 | $29 | 45 of 50 | -3% |
| Government administration | $253 | $321 | 36 of 50 | +5% |
| Interest on debt | $74 | $109 | 31 of 50 | +33% |
| Other | $398 | $782 | 45 of 50 | -6% |
U.S. Census Bureau, Annual Survey of State Government Finances, 2023.
On your state tax bill
Your state taxes split in proportion to Iowa'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 | $334 | $836 | $1,671 |
| Education | $314 | $785 | $1,571 |
| Hospitals | $119 | $298 | $596 |
| Highways | $95 | $237 | $475 |
| Other | $47 | $118 | $237 |
| Everything else | $90 | $225 | $451 |
Where the money comes from
Iowa collected $4.6 billion in individual income tax in fiscal 2023, 36% of its tax revenue.
Federal funds are Iowa'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 | $10.3B | 33.5% |
| Charges and fees (tuition, hospitals, tolls) | $5.2B | 16.8% |
| General sales tax | $4.7B | 15.1% |
| Individual income tax | $4.6B | 15.0% |
| Interest, lottery and other | $2.3B | 7.6% |
| Selective sales taxes (fuel, tobacco, alcohol, insurance) | $1.6B | 5.2% |
| Licenses (vehicles, businesses, hunting) | $1.1B | 3.7% |
| Corporate income tax | $838.1M | 2.7% |
| Other taxes (severance, estate and others) | $117.2M | 0.4% |
| Property tax | $775,000 | 0.0% |
U.S. Census Bureau, Annual Survey of State Government Finances, 2023.
Federal money and Iowa
Federal taxes paid by Iowa residents and businesses: how much federal tax Iowa pays. Federal spending in the state: federal money in Iowa. For federal taxes, see where your federal taxes go.
Questions and answers
- Where do my state taxes go in Iowa?
- Of every dollar Iowa's state government spent in fiscal year 2023 (July 2022 to June 2023), 33¢ went to public welfare, 31¢ to education and 12¢ to hospitals. Total general spending was $27.1 billion.
- How much does Iowa spend per person?
- $8,415 per resident in fiscal 2023, 30th highest of the 50 states (all states together: $8,834).
- How much of Iowa's budget comes from the federal government?
- 34% of general revenue ($10.3 billion) in fiscal 2023 came from the federal government, the largest part for Medicaid. By that share Iowa ranks 34th of the 50 states (1st = most reliant). Taxes were 42%.
- Does Iowa have a state income tax?
- Iowa collected $4.6 billion in individual income tax in fiscal 2023, 36% of its tax revenue.
- How much does Iowa spend on education and Medicaid?
- Education $8.5 billion (31%) and public welfare, mostly Medicaid, $9.0 billion (33%) in fiscal 2023. Education spending includes aid to local school districts, which then add their own property-tax money.
- How much debt does Iowa's state government have?
- $6.6 billion at the end of fiscal 2023, $2,055 per resident. Local governments' debt is separate.
Other states
- Indiana$7,491 per resident
- Minnesota$9,740 per resident
- Missouri$7,147 per resident
- South Dakota$7,131 per resident
- Arkansas$8,998 per resident
- Illinois$9,063 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.