Where state taxes goKentucky, fiscal 2023
Where do my state taxes go in Kentucky?
Of every dollar Kentucky's state government spends, 42¢ goes to public welfare and 27¢ to education.$44.7 billion of general spending in fiscal year 2023 (July 2022 to June 2023): $9,815 per resident, 14th highest of the 50 states. 44% of the money came from the federal government.
Where the money goes
General spending rose 10.5% on fiscal 2022 ($40.4 billion). The table under the chart has each function per resident, its rank and its change.
Public welfare and education take 69% of Kentucky'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 | $18.8B | 42.0% |
| Education 32% in all states | $12.1B | 27.1% |
| Hospitals 5% in all states | $3.7B | 8.3% |
| Other 9% in all states | $2.7B | 6.1% |
| Highways 6% in all states | $2.7B | 6.0% |
| Government administration 4% in all states | $1.8B | 4.0% |
| Prisons and corrections 2% in all states | $839.8M | 1.9% |
| Public health 3% in all states | $666.7M | 1.5% |
| Natural resources 1% in all states | $481.7M | 1.1% |
| State police 1% in all states | $479.0M | 1.1% |
| Parks and recreation 0% in all states | $231.4M | 0.5% |
| Interest on debt 1% in all states | $140.8M | 0.3% |
Per resident, rank and change for every function
| Function | Kentucky per resident | All states per resident | Rank (1 = most) | Change since 2022 |
|---|---|---|---|---|
| Education | $2,664 | $2,787 | 28 of 50 | +3% |
| Public welfare | $4,127 | $3,193 | 7 of 50 | +12% |
| Hospitals | $818 | $408 | 7 of 50 | +30% |
| Public health | $147 | $288 | 42 of 50 | -23% |
| Highways | $592 | $534 | 24 of 50 | +10% |
| State police | $105 | $74 | 12 of 50 | +33% |
| Prisons and corrections | $185 | $197 | 26 of 50 | +13% |
| Natural resources | $106 | $112 | 24 of 50 | +11% |
| Parks and recreation | $51 | $29 | 11 of 50 | +48% |
| Government administration | $396 | $321 | 23 of 50 | +8% |
| Interest on debt | $31 | $109 | 48 of 50 | +16% |
| Other | $595 | $782 | 35 of 50 | +26% |
U.S. Census Bureau, Annual Survey of State Government Finances, 2023.
On your state tax bill
Your state taxes split in proportion to Kentucky'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 | $420 | $1,051 | $2,102 |
| Education | $271 | $679 | $1,357 |
| Hospitals | $83 | $208 | $416 |
| Other | $61 | $152 | $303 |
| Highways | $60 | $151 | $302 |
| Everything else | $104 | $260 | $519 |
Where the money comes from
Kentucky collected $6.0 billion in individual income tax in fiscal 2023, 35% of its tax revenue.
Federal funds are Kentucky'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 | $20.3B | 43.9% |
| Charges and fees (tuition, hospitals, tolls) | $6.3B | 13.7% |
| Individual income tax | $6.0B | 13.1% |
| General sales tax | $5.7B | 12.4% |
| Selective sales taxes (fuel, tobacco, alcohol, insurance) | $2.6B | 5.7% |
| Interest, lottery and other | $2.4B | 5.2% |
| Corporate income tax | $1.2B | 2.6% |
| Property tax | $790.9M | 1.7% |
| Licenses (vehicles, businesses, hunting) | $601.3M | 1.3% |
| Other taxes (severance, estate and others) | $226.9M | 0.5% |
U.S. Census Bureau, Annual Survey of State Government Finances, 2023.
Federal money and Kentucky
Federal taxes paid by Kentucky residents and businesses: how much federal tax Kentucky pays. Federal spending in the state: federal money in Kentucky. For federal taxes, see where your federal taxes go.
Questions and answers
- Where do my state taxes go in Kentucky?
- Of every dollar Kentucky's state government spent in fiscal year 2023 (July 2022 to June 2023), 42¢ went to public welfare, 27¢ to education and 8¢ to hospitals. Total general spending was $44.7 billion.
- How much does Kentucky spend per person?
- $9,815 per resident in fiscal 2023, 14th highest of the 50 states (all states together: $8,834).
- How much of Kentucky's budget comes from the federal government?
- 44% of general revenue ($20.3 billion) in fiscal 2023 came from the federal government, the largest part for Medicaid. By that share Kentucky ranks 9th of the 50 states (1st = most reliant). Taxes were 37%.
- Does Kentucky have a state income tax?
- Kentucky collected $6.0 billion in individual income tax in fiscal 2023, 35% of its tax revenue.
- How much does Kentucky spend on education and Medicaid?
- Education $12.1 billion (27%) and public welfare, mostly Medicaid, $18.8 billion (42%) in fiscal 2023. Education spending includes aid to local school districts, which then add their own property-tax money.
- How much debt does Kentucky's state government have?
- $10.2 billion at the end of fiscal 2023, $2,240 per resident. Local governments' debt is separate.
Other states
- Indiana$7,491 per resident
- Missouri$7,147 per resident
- Tennessee$6,282 per resident
- West Virginia$10,195 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.