12:36 pm
July 11, 2023
The two main ways to compare taxes and spending across states are per capita and as a share of personal income. The U.S. Census Bureau released state and local finance data for fiscal year 2021 a few weeks ago. According to the data, Washington’s state and local taxes per capita increased 8.2% to $6,663 in 2021, which was the 14th highest in the country. Washington’s state and local spending per capita increased 3.2% to $11,964 in 2021, which was the 13th highest in the country. Although taxes per capita and spending per capita increased in Washington in 2021, our national rankings declined slightly.
If taxes and spending are measured as a share of personal income (PI), Washington’s ranks among the states are lower. This is because Washington is a wealthy state, with the sixth highest personal income per capita. In 2021, Washington’s taxes as a share of PI were 10.0%, which was the 30th highest. Washington’s spending as a share of PI was 17.9%, which was the 32nd highest.