Where Your Tax Money is Going

It’s safe to say we all don’t like paying taxes. With tax season wrapped up, you might be wondering: Where exactly is all that tax money going?

Here’s a simplified snapshot of where your income tax dollars are typically allocated:

• Healthcare – Funding for hospitals, medical research, and public health programs
• Social Services – Support for families, unemployment benefits, and pensions
• Education – Public schools, colleges, and financial aid
• Defense & Public Safety – National security, local policing, and emergency services
• Infrastructure & Environment – Roads, bridges, water systems, and green initiatives
• Interest on National Debt – Paying off existing government loans

 
In 2024, the U.S. federal government spent about 24% of its budget on Healthcare, 13% on National Defense, 13% on National Debt Interest, and 21% on Social Security.
 
How much goes to each of the above categories varies from year-to-year, but this should give you a general overview that helps illustrate how your taxes shape our communities and national services.

Here's a simplified snapshot of where your income tax dollars are typically allocated:

• Healthcare - Funding for hospitals, medical research, and public health programs