Tax collection in India is a major source of government income every year. If we look at the data of the Income Tax Department and the Finance Ministry, there are some states in the country which are far ahead of the rest. Even in the financial year 2024-25, Maharashtra, Gujarat, Karnataka, Tamil Nadu and Uttar Pradesh are among the top 5 states paying the highest taxes.
Which are the top 5 states in which people pay the highest taxes?
Maharashtra: Maharashtra continues to be at the forefront in GST contribution. The state collected Rs 3.8 lakh crore in the financial year 2024. While in April 2025, this figure was Rs 41,645 crore. However, this growth rate came down slightly to 11 percent. Despite this, Maharashtra is the highest tax paying state in the country.
Gujarat: Gujarat recorded GST collection of Rs 1.74 lakh crore in 2024-25. While so far, its contribution was only Rs 14,970 crore in April 2025. An increase of 13 percent was seen here on an annual basis.
Karnataka: Karnataka is also in a strong position in GST collection. In 2024, the state collected GST of Rs 1.43 lakh crore. Whereas in April 2025, this figure reached Rs 17,815 crore.
Tamil Nadu: Tamil Nadu, a large industrial state of South India, also plays a major role in GST. In the financial year 2024, GST of Rs 1.2 lakh crore came from here. Whereas in April 2025, Rs 13,831 crore was collected.
Uttar Pradesh: Uttar Pradesh is also maintaining its strong position in GST collection. In 2024, the state contributed Rs 1.5 lakh crore. In April 2025, its collection was Rs 13,600 crore.
Why is tax contribution important
The tax contribution of a state is not just a revenue figure. Rather, it tells how strong the economy there is. While states like Maharashtra and Gujarat are known for large industries and corporate hubs, states like Uttar Pradesh and Tamil Nadu are steadily progressing rapidly and can make a big contribution in the times to come.
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