Kentucky ranks 11th in the U.S. for most severance taxes paid in 2023

Andy Beshear, Governor of Kentucky - Official Website
Andy Beshear, Governor of Kentucky - Official Website
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In 2023, Kentucky collected $147 million in severance taxes, placing it 11th among all U.S. states, according to the U.S. Census Bureau’s Annual Survey of State Government Tax Collections (STC).

This marked a 34.9% increase from the $109 million generated in the previous year.

For comparison, Texas topped the national rankings in 2023, collecting $9.5 billion in severance taxes.

The State Government Tax Collections (STC) survey tracks five major tax categories and up to 25 subcategories, gathering data from all 50 state governments and their dependent agencies.

The Census Bureau notes that it defines tax classifications consistently across states, which may differ from how individual states categorize them.

All figures in this article reflect taxes collected by state governments only, based on the STC. They do not include local taxes, such as most property taxes, which make up a significant portion of overall taxes paid by residents.

According to the U.S. Census Bureau, state and local governments collect a wide range of taxes to fund public programs and services. These revenues are typically allocated to areas such as transportation, education, and public safety. In 2024, state tax collections alone amounted to nearly $1.5 trillion nationwide, representing a significant part of overall government operations.

U.S. Severance Taxes by State in 2023
RankStateAmount
1Texas$9,475,528,000
2New Mexico$5,295,401,000
3North Dakota$3,167,768,000
4Oklahoma$1,834,786,000
5Alaska$1,819,179,000
6Wyoming$1,145,516,000
7Louisiana$842,005,000
8West Virginia$840,325,000
9Colorado$345,959,000
10Montana$281,651,000
11Kentucky$147,022,000
12Utah$139,327,000
13California$135,200,000
14Arkansas$98,360,000
15Minnesota$92,048,000
16Nevada$79,953,000
17Kansas$71,322,000
18Ohio$60,930,000
19Alabama$54,359,000
20Washington$42,596,000
21Mississippi$40,661,000
22Michigan$36,346,000
23Florida$28,000,000
24Arizona$18,526,000
25Oregon$16,627,000
26Idaho$5,887,000
27South Dakota$5,657,000
28Nebraska$4,091,000
29Virginia$3,538,000
30Wisconsin$2,186,000
31North Carolina$1,731,000
32Indiana$1,572,000
33Tennessee$910,000
Information in this story was obtained from the U.S. Census Bureau’s Annual Survey of State Government Tax Collections (STC). The source data can be found here.



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