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Wednesday, Sep. 24, 2025

Does Minnesota generate more federal revenue than it gets in return?

Brian Arola, MinnPost
yes

Minnesota is consistently a so-called donor state, meaning its federal tax contribution exceeds the amount it receives in federal funding.

The federal government collected about $119 billion in tax revenue from Minnesota residents and businesses in 2023. The state, in return, received about $75 billion to support health care, nutrition, Social Security and other programs, according to USAFacts, a not-for-profit organization that analyzes government data. 

That $44 billion difference between taxes and revenue equated to about $7,600 per Minnesotan. And among 19 donor states in 2023, Delaware was the only one where residents had a higher net cost than Minnesotans.

Minnesota’s above-average median income is a factor in its lower dependence on federal funds, according to USAFacts and SmartAsset, a financial information platform. Alaska, New Mexico, West Virginia and Mississippi consistently rely the most on federal funds, based on imbalances between taxes and revenue. 

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