Where state taxes goMichigan, fiscal 2023
Where do my state taxes go in Michigan?
Of every dollar Michigan's state government spends, 38¢ goes to education and 30¢ to public welfare.$89.6 billion of general spending in fiscal year 2023 (October 2022 to September 2023): $8,900 per resident, 24th highest of the 50 states. 37% of the money came from the federal government.
Where the money goes
General spending rose 8.4% on fiscal 2022 ($82.6 billion). The table under the chart has each function per resident, its rank and its change.
Education and public welfare take 68% of Michigan's spending
State government general expenditure by function, fiscal year 2023 (October 2022 to September 2023). Small print: the share in all 50 states combined.
| Function | Spending | Share |
|---|---|---|
| Education 32% in all states | $34.0B | 38.0% |
| Public welfare 36% in all states | $26.5B | 29.6% |
| Hospitals 5% in all states | $7.7B | 8.6% |
| Other 9% in all states | $5.7B | 6.3% |
| Highways 6% in all states | $5.3B | 5.9% |
| Government administration 4% in all states | $3.0B | 3.4% |
| Public health 3% in all states | $2.8B | 3.1% |
| Prisons and corrections 2% in all states | $2.0B | 2.2% |
| Interest on debt 1% in all states | $1.0B | 1.2% |
| State police 1% in all states | $736.0M | 0.8% |
| Natural resources 1% in all states | $537.1M | 0.6% |
| Parks and recreation 0% in all states | $272.1M | 0.3% |
Per resident, rank and change for every function
| Function | Michigan per resident | All states per resident | Rank (1 = most) | Change since 2022 |
|---|---|---|---|---|
| Education | $3,381 | $2,787 | 15 of 50 | +8% |
| Public welfare | $2,635 | $3,193 | 31 of 50 | +5% |
| Hospitals | $762 | $408 | 8 of 50 | +33% |
| Public health | $274 | $288 | 20 of 50 | +12% |
| Highways | $529 | $534 | 27 of 50 | +8% |
| State police | $73 | $74 | 23 of 50 | +12% |
| Prisons and corrections | $200 | $197 | 22 of 50 | +5% |
| Natural resources | $53 | $112 | 45 of 50 | +13% |
| Parks and recreation | $27 | $29 | 29 of 50 | +39% |
| Government administration | $299 | $321 | 34 of 50 | +36% |
| Interest on debt | $104 | $109 | 26 of 50 | +23% |
| Other | $563 | $782 | 36 of 50 | -11% |
U.S. Census Bureau, Annual Survey of State Government Finances, 2023.
On your state tax bill
Your state taxes split in proportion to Michigan'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 |
|---|---|---|---|
| Education | $380 | $950 | $1,900 |
| Public welfare | $296 | $740 | $1,480 |
| Hospitals | $86 | $214 | $428 |
| Other | $63 | $158 | $316 |
| Highways | $59 | $148 | $297 |
| Everything else | $116 | $289 | $579 |
Where the money comes from
Michigan collected $11.5 billion in individual income tax in fiscal 2023, 31% of its tax revenue.
Federal funds are Michigan's largest source of general revenue
State government general revenue by source, fiscal year 2023 (October 2022 to September 2023)
| Source | Revenue | Share |
|---|---|---|
| Federal funds | $33.1B | 37.3% |
| Charges and fees (tuition, hospitals, tolls) | $13.0B | 14.7% |
| General sales tax | $12.9B | 14.6% |
| Individual income tax | $11.5B | 13.0% |
| Interest, lottery and other | $5.4B | 6.1% |
| Selective sales taxes (fuel, tobacco, alcohol, insurance) | $5.2B | 5.9% |
| Property tax | $2.7B | 3.1% |
| Licenses (vehicles, businesses, hunting) | $2.3B | 2.6% |
| Corporate income tax | $2.1B | 2.3% |
| Other taxes (severance, estate and others) | $443.3M | 0.5% |
U.S. Census Bureau, Annual Survey of State Government Finances, 2023.
Federal money and Michigan
Federal taxes paid by Michigan residents and businesses: how much federal tax Michigan pays. Federal spending in the state: federal money in Michigan. For federal taxes, see where your federal taxes go.
Questions and answers
- Where do my state taxes go in Michigan?
- Of every dollar Michigan's state government spent in fiscal year 2023 (October 2022 to September 2023), 38¢ went to education, 30¢ to public welfare and 9¢ to hospitals. Total general spending was $89.6 billion.
- How much does Michigan spend per person?
- $8,900 per resident in fiscal 2023, 24th highest of the 50 states (all states together: $8,834).
- How much of Michigan's budget comes from the federal government?
- 37% of general revenue ($33.1 billion) in fiscal 2023 came from the federal government, the largest part for Medicaid. By that share Michigan ranks 27th of the 50 states (1st = most reliant). Taxes were 42%.
- Does Michigan have a state income tax?
- Michigan collected $11.5 billion in individual income tax in fiscal 2023, 31% of its tax revenue.
- How much does Michigan spend on education and Medicaid?
- Education $34.0 billion (38%) and public welfare, mostly Medicaid, $26.5 billion (30%) in fiscal 2023. Education spending includes aid to local school districts, which then add their own property-tax money.
- How much debt does Michigan's state government have?
- $26.7 billion at the end of fiscal 2023, $2,656 per resident. Local governments' debt is separate.
Other states
- New York$11,601 per resident
- Pennsylvania$9,464 per resident
- Wisconsin$8,707 per resident
- Illinois$9,063 per resident
- New Jersey$9,538 per resident
- Ohio$8,108 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.