December 5, 2024 • By Galen Hendricks, Rita Jefferson
Local taxes are key to thriving communities. One in seven tax dollars in the U.S.—about $886 billion annually—is levied by local governments in support of education, infrastructure, public health, and other priorities. Three fourths of this funding comes from property taxes, 18 percent comes from sales and excise taxes, and six percent comes from income taxes.
The property tax is the oldest major revenue source for state and local governments and remains an important mechanism for funding education and other local services. This map shows the share of state and local general revenue in each state that is raised through property taxes.