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ANNAPOLIS, Md. — During the pandemic, many faced financial challenges, but to remedy this issue, the government expanded state stabilization funds, which are known as rainy day funds, fueled by increases in tax revenue.

At the beginning of the pandemic, the economy was at a standstill due to stay-at-home orders and social distancing. 

This change also caused a major shift in people’s spending habits. 

These changes caused many small businesses to be temporarily or permanently closed, and state balance sheets declined. 

This short-lived recession was quickly reversed with the help of bipartisan legislation that quickly provided fiscal support directly to individual taxpayers, businesses, and state governments. 

Although states received direct financial support from the federal government, tax revenue was the primary contributor to state budget surpluses, according to a new study.

In 2021, total state and local government tax revenue amounted to nearly $1.9 billion, twice as much as intergovernmental revenue, which is the next largest revenue source, according to the U.S. Census Bureau. 

Taxes make up over 40% of state and local government revenue, according to the study. Individual tax income makes up nearly a quarter of all state and local tax revenue.

This study found that Maryland collects the most individual income tax in the country. Individual income tax revenue makes up 21.7% of total revenue, while it makes up 40.5% of total tax revenue, according to the study.

To find the states that collect the most individual income tax, researchers at HowtoHome.com analyzed data from the U.S. Census Bureau’s 2020 annual survey of state and local government finances. 

Researchers ranked states according to each state’s individual income tax revenue as a share of total revenue. 

Researchers also calculated individual income tax revenue as a share of total tax revenue, total individual income tax revenue, total tax revenue, and total revenue.

To learn more about this study and where other states ranked, click here.

Contact our news desk at news@thebaynet.com

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52 Comments

    1. Yep! And taxes will go up even more if a democrat becomes the next governor. Then they will see a storm of retirees fleeing to a red state for sure.

      1. What do you want now? There’s over half a dozen people saying and agreeing with the same thing, what do you want?

        1. What don’t you understand? Your comment, as is usual, is simplistic and lacks any context. You also failed to read the article, as usual. Because the article does not say what the title says it does.

          1. As usual you post some off the wall garbage, why are you here? What do you want? Why comment only to start arguments? I’ve asked you a simple question that a 4 year old can answer

          2. I understand perfectly that you’re a troll
            Now answer my simple question, why are you here and what do you want? Other then starting arguments with everyone what’s your deal?, I’ll call the site again if need be

    2. Don’t you just love Maryland. It use to be called the land of Plesant Living now it’s just the land of highest taxes.

    3. The state’s population increased 2.26% over the last 4 years. I moved here for a good job, and it’s nice to have good roads, great schools and services. Thank you, Maryland.

        1. Why are you here!! All you do is try to start arguments!! If you would look farther you would notice that your comment has little to nothing to do with what James said or the article or the study. And people leave a state for all sorts of reasons. If you hate it in MD, leave. You are free to do so.

          1. I’m here because I agree with what the article says and provide countless facts for it, you however have no life but to stroll on through this site starting arguments with everyone on here
            So how about YOU move and get a life somewhere else instead of being a troll with nothing else better to do

    4. Why? Because Marylanders make more money than any other state in the country? Because the tax rate doesn’t even break the highest top 20? Because you failed fourth grade math?

        1. Maryland ranks #1 for median household income and #5 for median per capita… FYI the median household for the US is $65k, the same as individual here.

          Point being, collecting a lot of tax revenue on a large amount of income doesn’t mean the tax rate is high. Would you rather have 5% of $70,000 or 10% of $30,000?

  1. No surprise there! This is why people move out of the state. And not to mention how the tax businesses – which is why they don’t want to come here either!

  2. This is no surprise to me. Been like that for generations. Still here though. Family is in MD. That means I like this state. It does get worse and worse every year though.

  3. Been trying to get my family to move out of Maryland for over a decade. I’m going to do it slowly at first and then suddenly as soon as the kids graduate HS. Montgomery County makes things even worse on top of everything else.

  4. “Anonymous says: October 3, 2022 at 4:52 pm
    As usual you post some off the wall garbage, why are you here? What do you want? Why comment only to start arguments? I’ve asked you a simple question that a 4 year old can answer” What question. You’ve posted no question to my reply.

    1. Seriously? You literally need serious help and I mean that, you literally cut and pasted my questions in your comment
      You need help for real, if you continue posting I’ll send this to the state police so they can seek help for you
      Leave me alone now

      1. My comment “What question. You’ve posted no question to my reply.” was in response to this in your post: “I’ve asked you a simple question that a 4 year old can answer”. You should either: write more clearly or b. read BEFORE commenting. (which we know you won’t do because you rarely read the actual articles–you just read the headline)

        1. I literally backup everything I say with the facts, you however do not

          As usual you have completely lost another argument with myself brought on by you

          Have a wonderful day troll

        2. As usual also you continue to hide behind your phone, you continue to be proven wrong, you continue to troll the site, you continue to be a wimp, you continue to have no life, you continue to provide ZERO facts for your opinions
          I prove you wrong every time you go against me, at what point do you just stop? You’ll lose every time

          1. You have a severely overinflated view of yourself. This thread is a great example. You don’t even know what the study the article is based on says. You haven’t posted a single relevant reply. You are a hoot.

          2. BTW, my original comment was that your view that people move out of Maryland “exactly” because of high taxes has not been refuted. My comment that you didn’t read the study this article is based on is clearly true. Those are the only comments I have made. The only thing you have posted in response are personal attacks. Then you run around the site making similar childish comments on other threads.

          1. Then why do you keep replying? Why did you reply to so many posts on here and posts on other articles with your infantile “Big dog says you’re wrong”?

          1. Actually, I have called you out for your silly posts and for not reading the study. You’ve simply reverted to your childish name calling and threats. Why? Because your post was silly and not backed up and because you didn’t read the study before posting.

  5. “Anonymous says: October 3, 2022 at 8:17 pm I understand perfectly that you’re a troll Now answer my simple question, why are you here and what do you want? Other then starting arguments with everyone what’s your deal?, I’ll call the site again if need be” Oh good lord. You’ll “call the site again”? For what exactly? Pointing out that you obviously didn’t read the article or the underlying study?

  6. “Anonymous says: October 5, 2022 at 11:07 am I’m here because I agree with what the article says and provide countless facts for it, you however have no life but to stroll on through this site starting arguments with everyone on here So how about YOU move and get a life somewhere else instead of being a troll with nothing else better to do” Huh, would you care to copy and paste the portions of the article or the study that make any comment relative to population changes? No sense in anyone waiting because neither the article nor the study addresses this. You haven’t provided a single fact to support the article. Not one.

  7. foe some reason, the cigarette tax is not displayed where cigarettes are bought. No tobacco tax is displayed + the gas tax is not displayed where gas is bought. Why do we call taxes tolls, why do we call taxes fines?

      1. My point is you’re dumb and always claim to be right

        Now if you’ll excuse me I’ll do as I please

  8. maybe we need to get the church pastors involved. Maybe they’ll be listened to. When you get a fine, from a traffic ticket, from a misdemeanor, from selling alcohol to the underaged, go + tell your church pastor they’ve been deprived of a donation. Everytime you’re taxed, tolled, or fined, the church is deprived of a donation. When are we going to get to the point where we calll the clergy complacent for not addressing this?

  9. we can go into the comptrollers office + take care of our account [i wonder if they take cash]. But, can we go into the IRS + pay cash + take care of our account? Do we have the option of going into the IRS + paying in person?

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