America Counts: Stories Behind the Numbers
Fundamental Shifts in State Taxes in Past Century
The nation has completed another tax season and millions of U.S. taxpayers filed returns, tallied up their income, sales, property and capital gains taxes among many others.
Have there always been so many taxes?
In a word – no. At least, not at the turn of the last century. But things have changed drastically since then.
When the U.S. Census Bureau began collecting government finance data in 1902, there were no state sales taxes on general sales, tobacco, motor fuel or alcohol.
Fast forward 123 years to 2025, when every state collected some form of general or selective sales and gross receipt taxes, accounting for the largest portion – 45.4% – of tax revenue nationally.
At the beginning of the 20th century, there were no state income taxes because they were too difficult to administer. In 2025, 44 states collected personal income taxes, by then the nation’s second-largest source of tax revenue (33.7%).
Continue reading to learn more about how state tax systems have evolved.
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