5 Key Facts About Medicaid and Provider Taxes Authors: Alice Burns, Elizabeth Williams, Anna Mudumala, Elizabeth Hinton, and Robin Rudowitz Published: Dec 1, 2025

https://www.kff.org/medicaid/5-key-facts-about-medicaid-and-provider-taxes/ This issue brief uses data from KFF’s 2025-2026 survey of Medicaid directors to describe states’ current provider taxes, explore how the 2025 reconciliation law changed the federal rules governing provider taxes, and summarize potential impacts of the changes across states.