The study empirically investigates the hypothesis of convergence in states’ per capita own tax revenue using the club convergence methodology put forth by Phillips and Sul in 2007. The results reveal that the 16 select Indian states converged into two clubs over the period from 2001–02 to 2021–22. Further, by applying the panel binary probit model, the study also found that initial economic and social conditions such as share of agriculture in GDP, per capita income and literacy rate play a critical role in determining the positioning of Indian states in their respective clubs.