Where state taxes goTexas, fiscal 2023
Where do my state taxes go in Texas?
Of every dollar Texas's state government spends, 38¢ goes to education and 33¢ to public welfare.$196.8 billion of general spending in fiscal year 2023 (September 2022 to August 2023): $6,406 per resident, 47th highest of the 50 states. 38% of the money came from the federal government.
Where the money goes
General spending rose 6.2% on fiscal 2022 ($185.3 billion). The table under the chart has each function per resident, its rank and its change.
Education and public welfare take 71% of Texas's spending
State government general expenditure by function, fiscal year 2023 (September 2022 to August 2023). Small print: the share in all 50 states combined.
| Function | Spending | Share |
|---|---|---|
| Education 32% in all states | $74.8B | 38.0% |
| Public welfare 36% in all states | $65.0B | 33.0% |
| Highways 6% in all states | $14.2B | 7.2% |
| Hospitals 5% in all states | $12.3B | 6.3% |
| Other 9% in all states | $10.1B | 5.1% |
| Government administration 4% in all states | $6.0B | 3.0% |
| Prisons and corrections 2% in all states | $4.5B | 2.3% |
| Public health 3% in all states | $4.5B | 2.3% |
| State police 1% in all states | $1.8B | 0.9% |
| Interest on debt 1% in all states | $1.7B | 0.9% |
| Natural resources 1% in all states | $1.4B | 0.7% |
| Parks and recreation 0% in all states | $468.0M | 0.2% |
Per resident, rank and change for every function
| Function | Texas per resident | All states per resident | Rank (1 = most) | Change since 2022 |
|---|---|---|---|---|
| Education | $2,436 | $2,787 | 37 of 50 | +5% |
| Public welfare | $2,116 | $3,193 | 40 of 50 | +6% |
| Hospitals | $402 | $408 | 20 of 50 | +16% |
| Public health | $146 | $288 | 43 of 50 | -31% |
| Highways | $462 | $534 | 34 of 50 | +11% |
| State police | $58 | $74 | 37 of 50 | +15% |
| Prisons and corrections | $146 | $197 | 41 of 50 | +6% |
| Natural resources | $44 | $112 | 48 of 50 | +16% |
| Parks and recreation | $15 | $29 | 41 of 50 | +19% |
| Government administration | $195 | $321 | 43 of 50 | +20% |
| Interest on debt | $55 | $109 | 40 of 50 | +10% |
| Other | $329 | $782 | 50 of 50 | +10% |
U.S. Census Bureau, Annual Survey of State Government Finances, 2023.
On your state tax bill
Your state taxes split in proportion to Texas'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 | $951 | $1,902 |
| Public welfare | $330 | $826 | $1,652 |
| Highways | $72 | $180 | $360 |
| Hospitals | $63 | $157 | $313 |
| Other | $51 | $128 | $257 |
| Everything else | $103 | $258 | $516 |
Where the money comes from
The Census Bureau records no individual income tax revenue for Texas in fiscal 2023; its largest tax was the general sales tax ($53.7 billion).
Federal funds are Texas's largest source of general revenue
State government general revenue by source, fiscal year 2023 (September 2022 to August 2023)
| Source | Revenue | Share |
|---|---|---|
| Federal funds | $82.2B | 38.5% |
| General sales tax | $53.7B | 25.1% |
| Charges and fees (tuition, hospitals, tolls) | $22.6B | 10.6% |
| Interest, lottery and other | $22.0B | 10.3% |
| Selective sales taxes (fuel, tobacco, alcohol, insurance) | $19.7B | 9.2% |
| Other taxes (severance, estate and others) | $9.5B | 4.5% |
| Licenses (vehicles, businesses, hunting) | $3.9B | 1.8% |
U.S. Census Bureau, Annual Survey of State Government Finances, 2023.
Federal money and Texas
Federal taxes paid by Texas residents and businesses: how much federal tax Texas pays. Federal spending in the state: federal money in Texas. For federal taxes, see where your federal taxes go.
Questions and answers
- Where do my state taxes go in Texas?
- Of every dollar Texas's state government spent in fiscal year 2023 (September 2022 to August 2023), 38¢ went to education, 33¢ to public welfare and 7¢ to highways. Total general spending was $196.8 billion.
- How much does Texas spend per person?
- $6,406 per resident in fiscal 2023, 47th highest of the 50 states (all states together: $8,834).
- How much of Texas's budget comes from the federal government?
- 38% of general revenue ($82.2 billion) in fiscal 2023 came from the federal government, the largest part for Medicaid. By that share Texas ranks 25th of the 50 states (1st = most reliant). Taxes were 41%.
- Does Texas have a state income tax?
- The Census Bureau records no individual income tax revenue for Texas in fiscal 2023; its largest tax was the general sales tax ($53.7 billion).
- How much does Texas spend on education and Medicaid?
- Education $74.8 billion (38%) and public welfare, mostly Medicaid, $65.0 billion (33%) in fiscal 2023. Education spending includes aid to local school districts, which then add their own property-tax money.
- How much debt does Texas's state government have?
- $65.9 billion at the end of fiscal 2023, $2,145 per resident. Local governments' debt is separate.
Other states
- Oklahoma$7,351 per resident
- Kansas$8,760 per resident
- Louisiana$9,523 per resident
- Arkansas$8,998 per resident
- Mississippi$8,304 per resident
- Nebraska$7,574 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.