Kentucky ranks 33rd in the U.S. for most insurance premiums 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 $212.2 million in insurance premiums sales taxes, placing it 33rd among all U.S. states, according to the U.S. Census Bureau’s Annual Survey of State Government Tax Collections (STC).

This marked an 18.6% increase from the $179 million generated in the previous year.

For comparison, Texas topped the national rankings in 2023, collecting $4.2 billion in insurance premiums sales 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. Insurance Premiums Sales Taxes by State in 2023
RankStateAmount
1Texas$4,179,281,000
2California$3,690,456,000
3New York$2,456,791,000
4Florida$1,993,432,000
5Tennessee$1,274,120,000
6Louisiana$1,229,146,000
7North Carolina$1,169,639,000
8Pennsylvania$939,974,000
9Maryland$856,566,000
10Washington$847,086,000
11Arizona$811,228,000
12Ohio$767,006,000
13Minnesota$752,517,000
14Virginia$733,514,000
15New Jersey$723,894,000
16Massachusetts$613,510,000
17Alabama$563,244,000
18Nevada$546,898,000
19Illinois$536,806,000
20Colorado$533,490,000
21Georgia$519,077,000
22Missouri$516,480,000
23Kansas$503,133,000
24Michigan$471,261,000
25Mississippi$455,697,000
26New Mexico$388,600,000
27Arkansas$374,949,000
28Oklahoma$359,575,000
29South Carolina$337,845,000
30Indiana$268,114,000
31Wisconsin$251,916,000
32Connecticut$244,452,000
33Kentucky$212,229,000
34Hawaii$210,527,000
35Utah$202,989,000
36West Virginia$187,006,000
37Oregon$173,666,000
38Iowa$173,028,000
39Montana$163,891,000
40Rhode Island$154,474,000
41New Hampshire$154,258,000
42Delaware$145,896,000
43Idaho$139,362,000
44Maine$133,032,000
45South Dakota$105,088,000
46Nebraska$87,723,000
47North Dakota$80,032,000
48Vermont$72,313,000
49Alaska$63,446,000
50Wyoming$33,024,000
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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