Where My Taxes Go

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.

Spending per resident
$8,900
#24 of 50 · all states $8,834
State taxes per resident
$3,690
#33 of 50
From federal funds
37%
of general revenue · #27 of 50

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.

FunctionSpendingShare
Education 32% in all states$34.0B38.0%
Public welfare 36% in all states$26.5B29.6%
Hospitals 5% in all states$7.7B8.6%
Other 9% in all states$5.7B6.3%
Highways 6% in all states$5.3B5.9%
Government administration 4% in all states$3.0B3.4%
Public health 3% in all states$2.8B3.1%
Prisons and corrections 2% in all states$2.0B2.2%
Interest on debt 1% in all states$1.0B1.2%
State police 1% in all states$736.0M0.8%
Natural resources 1% in all states$537.1M0.6%
Parks and recreation 0% in all states$272.1M0.3%
Per resident, rank and change for every function
FunctionMichigan per residentAll states per residentRank (1 = most)Change since 2022
Education$3,381$2,78715 of 50+8%
Public welfare$2,635$3,19331 of 50+5%
Hospitals$762$4088 of 50+33%
Public health$274$28820 of 50+12%
Highways$529$53427 of 50+8%
State police$73$7423 of 50+12%
Prisons and corrections$200$19722 of 50+5%
Natural resources$53$11245 of 50+13%
Parks and recreation$27$2929 of 50+39%
Government administration$299$32134 of 50+36%
Interest on debt$104$10926 of 50+23%
Other$563$78236 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 toOf $1,000Of $2,500Of $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)

SourceRevenueShare
Federal funds$33.1B37.3%
Charges and fees (tuition, hospitals, tolls)$13.0B14.7%
General sales tax$12.9B14.6%
Individual income tax$11.5B13.0%
Interest, lottery and other$5.4B6.1%
Selective sales taxes (fuel, tobacco, alcohol, insurance)$5.2B5.9%
Property tax$2.7B3.1%
Licenses (vehicles, businesses, hunting)$2.3B2.6%
Corporate income tax$2.1B2.3%
Other taxes (severance, estate and others)$443.3M0.5%

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

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.