Where Your Tax Dollar Goes

Your Tax Dollar at Work

Every dollar the federal government collects in taxes funds the programs and services that keep America running. From the Social Security check your grandmother receives to the aircraft carrier protecting shipping lanes overseas, your tax dollars touch every aspect of American life.

The largest single expense? Social Security at 23 cents of every dollar, followed by healthcare programs (Medicare and Medicaid) at 25 cents combined, and national defense at 16 cents. Surprisingly, 13 cents of every dollar now goes just to paying interest on the national debt — more than we spend on all of education, transportation, and science combined.

Federal Budget Breakdown: Where the Money Goes

The complete picture of federal spending by major category, showing both the absolute amounts and percentage of your tax dollar.

Where Every Cent Goes: Major Spending Categories

A detailed breakdown of the major federal spending categories and the specific programs your tax dollars fund within each area.

Mandatory vs. Discretionary: What Congress Controls

Not all spending is created equal. Mandatory programs run on autopilot, while discretionary spending gets debated and voted on annually.

How Federal Spending Has Changed Over Time

The composition of federal spending has dramatically shifted over the past 50 years, with healthcare and interest costs growing rapidly.

Department-by-Department: Where Your Money Goes

The federal government employs 2.2 million civilians across 15 cabinet-level departments plus dozens of independent agencies. Here's how much of your tax dollar each major department receives.

The Complete Federal Budget: Every Program

The most detailed breakdown available: every major federal program and how much of your tax dollar it receives. This is where your money actually goes, down to the penny.

The Growing Problem: Interest on the National Debt

Perhaps the most troubling trend in federal spending is the rapid growth of interest payments on the national debt. At 13 cents of every tax dollar, debt service now exceeds spending on veterans, education, transportation, science, and international affairs combined.

The Math is Sobering: Every 1 percentage point increase in interest rates costs taxpayers an additional $330 billion annually. With rates at multi-decade highs and debt continuing to grow, interest payments could soon exceed defense spending. By 2034, the CBO projects debt service will consume 20 cents of every tax dollar.

The Bottom Line: Where Your Money Goes

Your tax dollars fund the essential functions of American society — from the Social Security check that provides dignity in retirement to the military forces that protect our shores to the interstate highways that connect our communities. Understanding how these dollars are spent is crucial for informed citizenship and democratic participation.

The largest programs — Social Security, Medicare, and defense — consume nearly two-thirds of all federal spending. But it's the smaller programs that often touch daily life most directly: food inspectors ensuring safe meals, air traffic controllers managing busy skies, weather forecasters warning of storms, and researchers developing tomorrow's medical breakthroughs.

As you review your tax bill each year, remember that those dollars represent investments in America's present and future — from caring for seniors and veterans who served our nation to educating the next generation and advancing the frontiers of human knowledge. Every dollar tells a story of national priorities and shared values.

Sources & Methodology

Data compiled from the Congressional Budget Office (CBO), Office of Management and Budget (OMB), Treasury Department, and individual federal agency budget documents for Fiscal Year 2024. Percentages calculated based on $5.86 trillion in total federal revenue. Program descriptions and beneficiary counts from agency annual reports and Government Accountability Office (GAO) publications.