NEW YORK (CNN/Money) - Every state in the union collected more in taxes in 2004 than the year before, according to a new report from the Census Department. A total of $593 billion in taxes were collected nationwide, up $44 billion from 2003.

A 7.5 percent rise in sales tax collections, to $198 billion, and an 8.5 percent increase in income tax payments, to $197 billion, fueled the overall 8.1 percent increase. The two taxes account for about two/thirds of all state taxes.

It sounds like good news for taxpayers; states will have an easier time balancing budgets and will not need to find new sources of income. But, said Harley Duncan of the Federation of Tax Administrators, "We have to avoid getting too carried away. The comparison is with 2003, which was not a good year."

Collections in 2002 and 2003 were actually lower than in 2001, when $559 billion in taxes were paid. According to Duncan, income tax shortfalls accounted for much of the downturn. Sales taxes held up well those years.

In 2004, other major taxes had even steeper increases with severance taxes up 18 percent and documentary and stock transfer tax collections soaring 26 percent. That increase reflected the hot real estate market; deed recordation taxes, which are paid when homeowners sell, refinance, or obtain home equity loans, were way up.

The most populated state, California, collected the most in taxes in 2004 – nearly $86 billion. New York ($45 billion) was next, followed by Florida ($31 billion). The highest per capita rate was in Hawaii, which collected more than $3,047 for every resident, followed by Wyoming with $2,968.

The lowest rate was in Texas, where $1,367 was collected per person.

Click here for some wacky state taxes.