Property Taxes Are the Largest Revenue Source in half of States; Nevada Depends Heavily on Sales Taxes
A state-by-state analysis of Census Bureau government finance data shows that the sources of tax revenue vary sharply across the country. Property taxes are the single largest source in about half the states, while others rely more on sales taxes, individual income taxes, or specialized levies such as energy or license fees.
New Hampshire relies on property taxes more than any other state, at 64.3% of total collections. Alaska (42.4%) and Texas (about 41%) follow as the next-highest property-tax states. At the other end of the spectrum, West Virginia’s biggest source (individual income taxes) accounts for 23.2% of revenue, Pennsylvania’s for 26.4%, and Minnesota’s for 27.5%.
Nevada ranks near the top for sales-tax dependence. General sales and gross receipts taxes make up 44.8% of the state’s combined state and local tax revenue, the fifth-highest concentration on any single source nationwide. Only Washington (49.0%), Tennessee (47.8%), and Arizona (46.9%) rely more heavily on general sales taxes. Like Florida and Texas, Nevada has no broad-based individual income tax, so it draws the bulk of its revenue from sales and property taxes instead. Sales-related collections include taxes tied to tourism, gaming, and other activities that are especially important in the state.
