The federal government collected $4.47 trillion in revenue during the 2023 fiscal year.[1] That’s a lot (10 zeros to be exact) but it also represents a decrease of 15.5%, a drop from the 14.3% increase we saw between 2021 and 2022.
What portion of federal revenue comes from income taxes?
In 2023, the federal government collected just under $2.18 trillion in income taxes, or 48.7% of total revenue. Adjusting for inflation, this means income tax revenue fell $588.9 billion from 2022, after increasing by more than $880.7 million between 2020 and 2022, the result of additional capital gains taxes and increased income tax withholdings.
How do other taxes contribute to government revenue?
In 2023, payroll taxes accounted for 36.6% of the federal government revenue. Both employers and employees contribute to these taxes, which fund Social Security and Medicare programs.
Other federal government revenue sources include corporate income taxes (9.4% of 2023 revenue), customs and duties (1.8%), sales and excise taxes (1.7%), and non-tax revenue like Federal Reserve earnings and the sale of government resources (1.8%).
For a more thorough inspection of the federal budget, read the 2024 State of the Union in Numbers.
[1] The federal fiscal year runs from October 1 to September 30.
