Where state taxes goNorth Dakota, fiscal 2023
Where do my state taxes go in North Dakota?
Of every dollar North Dakota's state government spends, 31¢ goes to education and 24¢ to public welfare.$9.3 billion of general spending in fiscal year 2023 (July 2022 to June 2023): $11,780 per resident, 7th highest of the 50 states. 28% of the money came from the federal government.
Where the money goes
General spending rose 5.6% on fiscal 2022 ($8.8 billion). The table under the chart has each function per resident, its rank and its change.
Education and public welfare take 55% of North Dakota'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 |
|---|---|---|
| Education 32% in all states | $2.9B | 31.5% |
| Public welfare 36% in all states | $2.2B | 23.6% |
| Other 9% in all states | $1.8B | 19.5% |
| Highways 6% in all states | $959.1M | 10.3% |
| Government administration 4% in all states | $354.9M | 3.8% |
| Natural resources 1% in all states | $275.1M | 3.0% |
| Public health 3% in all states | $273.9M | 3.0% |
| Interest on debt 1% in all states | $221.7M | 2.4% |
| Prisons and corrections 2% in all states | $134.5M | 1.5% |
| Hospitals 5% in all states | $53.7M | 0.6% |
| State police 1% in all states | $42.6M | 0.5% |
| Parks and recreation 0% in all states | $41.4M | 0.4% |
Per resident, rank and change for every function
| Function | North Dakota per resident | All states per resident | Rank (1 = most) | Change since 2022 |
|---|---|---|---|---|
| Education | $3,709 | $2,787 | 7 of 50 | -4% |
| Public welfare | $2,782 | $3,193 | 26 of 50 | +8% |
| Hospitals | $68 | $408 | 42 of 50 | +11% |
| Public health | $348 | $288 | 14 of 50 | -8% |
| Highways | $1,219 | $534 | 2 of 50 | +34% |
| State police | $54 | $74 | 40 of 50 | -1% |
| Prisons and corrections | $171 | $197 | 31 of 50 | +6% |
| Natural resources | $350 | $112 | 4 of 50 | +6% |
| Parks and recreation | $53 | $29 | 10 of 50 | +38% |
| Government administration | $451 | $321 | 15 of 50 | +1% |
| Interest on debt | $282 | $109 | 3 of 50 | +96% |
| Other | $2,295 | $782 | 2 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 North Dakota'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 | $315 | $787 | $1,574 |
| Public welfare | $236 | $590 | $1,181 |
| Other | $195 | $487 | $974 |
| Highways | $103 | $259 | $517 |
| Government administration | $38 | $96 | $191 |
| Everything else | $112 | $281 | $562 |
Where the money comes from
North Dakota collected $495.4 million in individual income tax in fiscal 2023, 8% of its tax revenue.
Other taxes (severance, estate and others) is North Dakota's largest source of general revenue
State government general revenue by source, fiscal year 2023 (July 2022 to June 2023)
| Source | Revenue | Share |
|---|---|---|
| Other taxes (severance, estate and others) | $3.2B | 30.6% |
| Federal funds | $2.9B | 27.8% |
| General sales tax | $1.3B | 12.3% |
| Charges and fees (tuition, hospitals, tolls) | $1.0B | 10.0% |
| Selective sales taxes (fuel, tobacco, alcohol, insurance) | $554.1M | 5.4% |
| Individual income tax | $495.4M | 4.8% |
| Interest, lottery and other | $388.9M | 3.8% |
| Corporate income tax | $324.1M | 3.1% |
| Licenses (vehicles, businesses, hunting) | $231.2M | 2.2% |
| Property tax | $5.5M | 0.1% |
U.S. Census Bureau, Annual Survey of State Government Finances, 2023.
Federal money and North Dakota
Federal taxes paid by North Dakota residents and businesses: how much federal tax North Dakota pays. Federal spending in the state: federal money in North Dakota. For federal taxes, see where your federal taxes go.
Questions and answers
- Where do my state taxes go in North Dakota?
- Of every dollar North Dakota's state government spent in fiscal year 2023 (July 2022 to June 2023), 31¢ went to education, 24¢ to public welfare and 19¢ to other purposes. Total general spending was $9.3 billion.
- How much does North Dakota spend per person?
- $11,780 per resident in fiscal 2023, 7th highest of the 50 states (all states together: $8,834).
- How much of North Dakota's budget comes from the federal government?
- 28% of general revenue ($2.9 billion) in fiscal 2023 came from the federal government, the largest part for Medicaid. By that share North Dakota ranks 48th of the 50 states (1st = most reliant). Taxes were 58%.
- Does North Dakota have a state income tax?
- North Dakota collected $495.4 million in individual income tax in fiscal 2023, 8% of its tax revenue.
- How much does North Dakota spend on education and Medicaid?
- Education $2.9 billion (31%) and public welfare, mostly Medicaid, $2.2 billion (24%) in fiscal 2023. Education spending includes aid to local school districts, which then add their own property-tax money.
- How much debt does North Dakota's state government have?
- $4.2 billion at the end of fiscal 2023, $5,373 per resident. Local governments' debt is separate.
Other states
- Minnesota$9,740 per resident
- Montana$7,636 per resident
- South Dakota$7,131 per resident
- Idaho$7,235 per resident
- Illinois$9,063 per resident
- Iowa$8,415 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.