Most Federal Revenue comes from Individual Income and Payroll Taxes

The federal government collected $4.47 trillion in revenue during the 2023 fiscal year. That’s a lot (10 zeros to be exact) but it also represents a decrease of 15.5%, a drop from the 14.3% increase we saw between 2021 and 2022.

What portion of federal revenue comes from income taxes?

In 2023, the federal government collected just under $2.18 trillion in income taxes, or 48.7% of total revenue. Adjusting for inflation, this means income tax revenue fell $588.9 billion from 2022, after increasing by more than $880.7 million between 2020 and 2022, the result of additional capital gains taxes and increased income tax withholdings.