Where My Taxes Go

Where state taxes goMontana, fiscal 2023

Where do my state taxes go in Montana?

Of every dollar Montana's state government spends, 35¢ goes to public welfare and 27¢ to education.$8.6 billion of general spending in fiscal year 2023 (July 2022 to June 2023): $7,636 per resident, 36th highest of the 50 states. 45% of the money came from the federal government.

Spending per resident
$7,636
#36 of 50 · all states $8,834
State taxes per resident
$4,166
#26 of 50
From federal funds
45%
of general revenue · #6 of 50

Where the money goes

General spending rose 8.4% on fiscal 2022 ($8.0 billion). The table under the chart has each function per resident, its rank and its change.

Public welfare and education take 62% of Montana'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$3.0B35.0%
Education 32% in all states$2.3B26.9%
Highways 6% in all states$917.7M10.6%
Government administration 4% in all states$579.5M6.7%
Other 9% in all states$568.7M6.6%
Natural resources 1% in all states$341.8M4.0%
Prisons and corrections 2% in all states$260.5M3.0%
Public health 3% in all states$252.9M2.9%
Interest on debt 1% in all states$135.1M1.6%
Hospitals 5% in all states$110.2M1.3%
State police 1% in all states$78.4M0.9%
Parks and recreation 0% in all states$40.1M0.5%
Per resident, rank and change for every function
FunctionMontana per residentAll states per residentRank (1 = most)Change since 2022
Education$2,055$2,78747 of 50+8%
Public welfare$2,676$3,19330 of 50+4%
Hospitals$98$40835 of 50+40%
Public health$224$28827 of 50+4%
Highways$812$5348 of 50+22%
State police$69$7426 of 50+5%
Prisons and corrections$230$19714 of 50+16%
Natural resources$302$1125 of 50+19%
Parks and recreation$36$2921 of 50+5%
Government administration$513$32111 of 50+7%
Interest on debt$119$10923 of 50+15%
Other$503$78238 of 50+4%

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

On your state tax bill

Your state taxes split in proportion to Montana'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$350$876$1,752
Education$269$673$1,345
Highways$106$266$532
Government administration$67$168$336
Other$66$165$329
Everything else$141$353$706

Where the money comes from

Montana collected $2.3 billion in individual income tax in fiscal 2023, 49% of its tax revenue.

Federal funds are Montana's largest source of general revenue

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

SourceRevenueShare
Federal funds$4.7B44.7%
Individual income tax$2.3B21.7%
Selective sales taxes (fuel, tobacco, alcohol, insurance)$923.8M8.8%
Charges and fees (tuition, hospitals, tolls)$614.0M5.8%
Licenses (vehicles, businesses, hunting)$513.6M4.9%
Interest, lottery and other$506.4M4.8%
Property tax$388.9M3.7%
Corporate income tax$307.9M2.9%
Other taxes (severance, estate and others)$289.0M2.7%

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

Federal money and Montana

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

Questions and answers

Where do my state taxes go in Montana?
Of every dollar Montana's state government spent in fiscal year 2023 (July 2022 to June 2023), 35¢ went to public welfare, 27¢ to education and 11¢ to highways. Total general spending was $8.6 billion.
How much does Montana spend per person?
$7,636 per resident in fiscal 2023, 36th highest of the 50 states (all states together: $8,834).
How much of Montana's budget comes from the federal government?
45% of general revenue ($4.7 billion) in fiscal 2023 came from the federal government, the largest part for Medicaid. By that share Montana ranks 6th of the 50 states (1st = most reliant). Taxes were 45%.
Does Montana have a state income tax?
Montana collected $2.3 billion in individual income tax in fiscal 2023, 49% of its tax revenue.
How much does Montana spend on education and Medicaid?
Education $2.3 billion (27%) and public welfare, mostly Medicaid, $3.0 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 Montana's state government have?
$3.0 billion at the end of fiscal 2023, $2,613 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.