US & World Economies US Economy U.S. Federal Government Tax Revenue by Year By Kimberly Amadeo Updated on May 15, 2024 Reviewed by Somer G. Anderson Reviewed by Somer G. Anderson Somer G. Anderson is CPA, doctor of accounting, and an accounting and finance professor who has been working in the accounting and finance industries for more than 20 years. Her expertise covers a wide range of accounting, corporate finance, taxes, lending, and personal finance areas. learn about our financial review board Fact checked by J.R. Duren In This Article View All In This Article The Federal Government's Current Revenue How Revenue Relates to the Deficit, Debt, and GDP U.S. Tax Revenue by Year Frequently Asked Questions (FAQs) Photo: 10'000 Hours / Getty Images U.S. federal tax revenue is made up of the total tax receipts received by the government each year. Most of it is paid either through income taxes or payroll taxes. The rest is made up of estate taxes, excise and customs duties, and interest on the Federal Reserve's holdings of U.S. Treasurys. Key Takeaways The bulk of federal tax revenue comes from income taxes, payroll taxes, and corporate taxes.Historically, federal revenues haven't been enough to pay for spending, creating a trillion-dollar budget deficit.Tax cuts implemented by Presidents Bush, Obama, and Trump to drive economic growth further reduced revenues.Tax revenue has grown steadily since 1962. It eclipsed $1 trillion for the first time in 1990. The Federal Government's Current Revenue The U.S. government estimates its total revenue to be $5.49 trillion for fiscal year 2025. Per the White House's projections, income taxes are slated to contribute $2.6 trillion. Another $2.2 trillion should come from payroll taxes. This includes $1.3 trillion for Social Security, $399 billion for Medicare, and $56 billion for unemployment insurance. Corporate taxes would add another $467 billion. The remainder of federal revenue comes from excise taxes, tariffs on imports, miscellaneous receipts, and estate taxes. How Revenue Relates to the Deficit, Debt, and GDP The government's annual income doesn't cover its spending, which was projected to create a $1.8 trillion budget deficit in 2025. Deficits add to the national debt. Many argue that Congress should only spend what it earns, but that depends on where the economy is in the business cycle. For example, some argue Congress should use deficit spending to expand economic growth in a recession and stimulus spending to create jobs. Once the recession is over, the government should then switch from expansionary to contractionary fiscal policy because it's the best time to raise taxes and reduce the deficit and national debt. It also keeps the economy from overheating and forming dangerous bubbles. Note The government's 2025 tax revenue projection is roughly 18.7% of gross domestic product (GDP), which is a measurement of a nation's economic output. U.S. Tax Revenue by Year Here's a record of income for each fiscal year since 1962. Tax receipts fell off during the 2007–2009 recession but started setting new records by fiscal year 2013. They fell off again during the brief 2020 recession and then resumed their upward climb until the fiscal year 2023, when lower income tax collections driven by Trump's tax cuts pushed overall revenue lower. Fiscal Year Revenue FY 2023 $4.44 trillion FY 2022 $4.90 trillion FY 2021 $4.05 trillion FY 2020 $3.42 trillion FY 2019 $3.46 trillion FY 2018 $3.33 trillion FY 2017 $3.32 trillion FY 2016 $3.27 trillion FY 2015 $3.25 trillion FY 2014 $3.02 trillion FY 2013 $2.78 trillion FY 2012 $2.45 trillion FY 2011 $2.30 trillion FY 2010 $2.16 trillion FY 2009 $2.11 trillion FY 2008 $2.52 trillion FY 2007 $2.57 trillion FY 2006 $2.41 trillion FY 2005 $2.15 trillion FY 2004 $1.88 trillion FY 2003 $1.78 trillion FY 2002 $1.85 trillion FY 2001 $1.99 trillion FY 2000 $2.03 trillion FY 1999 $1.83 trillion FY 1998 $1.72 trillion FY 1997 $1.58 trillion FY 1996 $1.45 trillion FY 1995 $1.35 trillion FY 1994 $1.26 trillion FY 1993 $1.15 trillion FY 1992 $1.09 trillion FY 1991 $1.06 trillion FY 1990 $1.03 trillion FY 1989 $991.1 billion FY1988 $909.2 billion FY 1987 $854.3 billion FY 1986 $769.2 billion FY 1985 $734.0 billion FY 1984 $666.4 billion FY 1983 $600.6 billion FY 1982 $617.8 billion FY 1981 $599.3 billion FY 1980 $517.1 billion FY 1979 $463.3 billion FY 1978 $399.6 billion FY 1977 $355.6 billion FY 1976 $298.1 billion FY 1975 $279.1 billion FY 1974 $263.2 billion FY 1973 $230.8 billion FY 1972 $207.3 billion FY 1971 $187.1 billion FY 1970 $192.8 billion FY 1969 $186.9 billion FY 1968 $153.0 billion FY 1967 $148.8 billion FY 1966 $130.8 billion FY 1965 $116.8 billion FY 1964 $112.6 billion FY 1963 $106.6 billion FY 1962 $99.7 billion Frequently Asked Questions (FAQs) What is the main source of tax revenue for local governments? Unlike the federal government, most local governments earn the majority of their revenue from property or sales taxes. Income taxes are significantly less common at the local level. How does the government raise revenue? One way for the federal government to increase revenue is to boost taxes. It has several options to do this, though, and economists and policymakers frequently debate the effectiveness of each. Some examples of ways to increase federal tax revenues include directly increasing tax rates, raising rates on wealthier taxpayers, reducing tax exemptions and deductions, and boosting economic activity. How much are federal taxes? Federal income taxes are structured in graduated brackets ranging from 10% to 37% of your adjusted gross income. Long-term capital gains are taxed at a different rate, ranging from 0% to 20%. Was this page helpful? Thanks for your feedback! Tell us why! Other Submit Sources The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. The White House. "Budget for the U.S. Government: Fiscal Year 2025," Pages 141-146. Congressional Budget Office. "The Budget and Economic Outlook: 2024 to 2034." Congressional Budget Office. "Historical Budget Data." Pew Charitable Trusts. "How Local Governments Raise Their Tax Dollars." The Tax Policy Center. "What Options Would Increase Federal Revenues?" Related Articles U.S. Budget Deficit by Year U.S. National Debt by Year U.S. National Debt by President Will the U.S. Ever Get Out of Debt? Trump's Tax Plan and How It Affects You Democrats vs. Republicans: Which Is Better for the Economy? FY 2020 Federal Budget Compared to Actual Spending What Is the Current US Federal Budget Deficit? U.S. Federal Budget Breakdown 2017 Federal Budget Compared to Trump's Spending What Is the Federal Budget? FY 2008 U.S. Federal Budget and Spending FY 2016 Federal Budget: President's Request vs. Spending FY 2006 U.S. Federal Budget and Spending Current U.S. Federal Government Spending FY 2015 U.S. Federal Budget and Spending Newsletter Sign Up