Not a Giver, Not a Taker: Nevada Nearly Breaks Even in Federal Funding Exchange
In fiscal year 2024, the U.S. federal government collected $5.07 trillion in tax revenue, with individual income taxes and payroll taxes together making up roughly 87% of the total. California contributed the largest share, accounting for 15.9% of all federal taxes collected nationwide, due to its size and wealthy population. When contributions are measured on a per-person basis, however, a different picture emerges: the highest per capita federal tax payments came from Massachusetts ($21,933 per resident), Nebraska ($21,922), and Minnesota ($21,106), while the lowest were in West Virginia ($4,912 per resident), Mississippi ($5,161), and New Mexico ($6,033). Nevada fell in the lower half of states for per capita contributions, with residents paying roughly $12,500 last year.
An analysis of federal taxes and spending found that Nevada was nearly in balance with the federal government. After accounting for all federal taxes paid by Nevada residents and businesses, including individual income taxes, payroll taxes, corporate taxes, and excise taxes, and comparing them to the federal dollars that flowed back into the state through programs such as Social Security, Medicare, Medicaid, military bases and defense contracts, highways, grants, and other spending, Nevada recorded a small positive net balance of approximately $1,500 per person. This modest surplus means that for every dollar Nevadans sent to Washington, the state received just slightly more than a dollar in return. Among the 50 states, this places Nevada roughly in the middle, neither a significant donor state that subsidizes the rest of the country nor a major recipient of federal funds.
States with the largest positive balances include Virginia, New Mexico, and Maryland, where federal spending per person exceeds taxes paid. California, New York, and New Jersey show the largest negative balances, sending billions more to Washington than they receive.
Nevada maintains a nearly break-even balance with the federal government due to its diverse economic mix. Military installations like Nellis Air Force Base bring in substantial defense spending, while the state’s tourism and service industries generate moderate federal tax revenue. Overall, Nevada relies on federal funds less than about half of all U.S. states, though programs such as Medicaid still depend heavily on Washington.
For context, New Mexico is the most federally dependent state: roughly 33% of its budget comes from federal sources, primarily for healthcare and infrastructure. At the other end of the spectrum is Vermont, where federal funds account for just 13% of the budget, the lowest share in the nation, due to stronger local and state tax revenues.
Nationwide, the federal government collected $5.07 trillion in taxes and returned $4.87 trillion to states and residents in fiscal 2024, leaving a small overall surplus. Thirty states received more than they paid, while twenty states contributed more than they got back. Nevada remains one of the states closest to balance in the annual federal money exchange.
