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Most states rely primarily on state tax collections, not federal aid, service fees or other sources, but New Jersey is more reliant on state tax revenue than most, according to new research from the Pew Charitable Trusts. 

In a state-by-state comparison of revenue sources using FY22 budget data, New Jersey ranked 5th for reliance on state taxes with 54.8% of its revenue coming from tax collections. Only Nevada (55.2%), Minnesota (57.6%), Connecticut (58.4%) and California (60.5%) relied more on state tax collections. 

Nationally, the percentage of revenue from state taxes averaged 48.3%. In all, 17 of 50 states, including New Jersey, exceeded that average for FY 2022.   

Conversely 16 states collected more federal funds than they did state tax revenue. Nationwide, federal funds averaged 36.4% of revenues, but was much lower in New Jersey (29.5%). Louisiana was most reliant on federal funds, getting 50.5% of its money from the federal government.  

Nationally, the percentage of revenue collected from service charges was 8.9% and in New Jersey it was slightly lower at 8%. 

To view an infographic that breaks down the various revenue sources – state taxes, federal funds, service charges, miscellaneous and local funds – go to the Pew Charitable Trusts website here.