Where My Taxes Go

Where state taxes goMaryland, fiscal 2023

Where do my state taxes go in Maryland?

Of every dollar Maryland's state government spends, 35¢ goes to public welfare and 33¢ to education.$57.4 billion of general spending in fiscal year 2023 (July 2022 to June 2023): $9,257 per resident, 21st highest of the 50 states. 36% of the money came from the federal government.

Spending per resident
$9,257
#21 of 50 · all states $8,834
State taxes per resident
$4,786
#16 of 50
From federal funds
36%
of general revenue · #30 of 50

Where the money goes

General spending rose 3.7% on fiscal 2022 ($55.4 billion). The table under the chart has each function per resident, its rank and its change.

Public welfare and education take 68% of Maryland'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$19.9B34.7%
Education 32% in all states$19.2B33.4%
Other 9% in all states$3.9B6.9%
Public health 3% in all states$3.4B6.0%
Government administration 4% in all states$2.5B4.4%
Highways 6% in all states$2.5B4.3%
Prisons and corrections 2% in all states$1.8B3.2%
State police 1% in all states$1.2B2.1%
Interest on debt 1% in all states$1.1B2.0%
Natural resources 1% in all states$890.0M1.5%
Hospitals 5% in all states$518.4M0.9%
Parks and recreation 0% in all states$309.0M0.5%
Per resident, rank and change for every function
FunctionMaryland per residentAll states per residentRank (1 = most)Change since 2022
Education$3,095$2,78719 of 50+9%
Public welfare$3,213$3,19319 of 50+2%
Hospitals$84$40837 of 50+5%
Public health$555$2886 of 50-16%
Highways$397$53444 of 50-7%
State police$194$743 of 50+22%
Prisons and corrections$296$1974 of 50+8%
Natural resources$143$11217 of 50+28%
Parks and recreation$50$2914 of 50+41%
Government administration$411$32120 of 50+8%
Interest on debt$182$1099 of 50+7%
Other$636$78231 of 50+0%

U.S. Census Bureau, Annual Survey of State Government Finances, 2023.

On your state tax bill

Your state taxes split in proportion to Maryland'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$347$868$1,736
Education$334$836$1,672
Other$69$172$344
Public health$60$150$300
Government administration$44$111$222
Everything else$145$363$727

Where the money comes from

Maryland collected $12.1 billion in individual income tax in fiscal 2023, 41% of its tax revenue.

Federal funds are Maryland's largest source of general revenue

State government general revenue by source, fiscal year 2023 (July 2022 to June 2023)

SourceRevenueShare
Federal funds$21.0B35.9%
Individual income tax$12.1B20.8%
General sales tax$6.8B11.7%
Selective sales taxes (fuel, tobacco, alcohol, insurance)$5.8B9.9%
Charges and fees (tuition, hospitals, tolls)$4.3B7.4%
Interest, lottery and other$3.5B6.0%
Corporate income tax$2.0B3.5%
Property tax$1.1B1.8%
Licenses (vehicles, businesses, hunting)$1.0B1.8%
Other taxes (severance, estate and others)$761.4M1.3%

U.S. Census Bureau, Annual Survey of State Government Finances, 2023.

Federal money and Maryland

Federal taxes paid by Maryland residents and businesses: how much federal tax Maryland pays. Federal spending in the state: federal money in Maryland. For federal taxes, see where your federal taxes go.

Questions and answers

Where do my state taxes go in Maryland?
Of every dollar Maryland's state government spent in fiscal year 2023 (July 2022 to June 2023), 35¢ went to public welfare, 33¢ to education and 7¢ to other purposes. Total general spending was $57.4 billion.
How much does Maryland spend per person?
$9,257 per resident in fiscal 2023, 21st highest of the 50 states (all states together: $8,834).
How much of Maryland's budget comes from the federal government?
36% of general revenue ($21.0 billion) in fiscal 2023 came from the federal government, the largest part for Medicaid. By that share Maryland ranks 30th of the 50 states (1st = most reliant). Taxes were 51%.
Does Maryland have a state income tax?
Maryland collected $12.1 billion in individual income tax in fiscal 2023, 41% of its tax revenue.
How much does Maryland spend on education and Medicaid?
Education $19.2 billion (33%) and public welfare, mostly Medicaid, $19.9 billion (35%) in fiscal 2023. Education spending includes aid to local school districts, which then add their own property-tax money.
How much debt does Maryland's state government have?
$25.4 billion at the end of fiscal 2023, $4,088 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.