Tax filing season is upon us, and Americans eagerly await their refunds. The IRS got an early start on processing taxes in 2022. This year’s tax season began on Jan. 24 as opposed to Feb. 12 of last year. The deadline to file taxes this year is April 18, and so far, the average refund has been higher than last year’s. The IRS reports that as of March 25, the average refund was $3,263, up from $2,902 in 2021.
Kiplinger.com notes in an article that people expecting large refunds tend to file early, so the average amount may be lower when all filings are processed. On the other hand, other factors could yet increase average refunds. For example, most taxpayers could get a boost if they did not receive their Economic Impact Payment of $1,400 or did not take advantage of the expanded child tax credit in 2021. (Here are some common tax mistakes people make.)
Other factors that could affect the tax refund are state-dependent. To determine the states with the largest average tax refund, 24/7 Wall St. reviewed data on tax filings and refunds from the Internal Revenue Service. States were ranked based on the average income tax refund amount issued per individual income tax filing in the 2020 fiscal year.
The good news is that in all states except Oregon the average federal income tax refund exceeded $2,000 in the 2020 fiscal year. Texans scored the highest amount at $2,682.
So what will Americans do with their hefty check? In February, the National Retail Federation surveyed 7,929 adults about what they planned to do with their refund. Most said they will use the funds wisely, with 51% targeting the dollars for savings. Thirty-three percent plan to pay down debt. (Here’s what Americans spend their money on.)
Click here to see states with the largest average tax refund
Click here to see the methodology
50. Oregon
> Average federal income tax refund amount: $1,986
> Federal income tax collection per filing: $12,058 (18th least)
> Median household income: $65,667 (18th highest)
> Pct. of filers receiving refund: 62.4% (3rd least)
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49. Vermont
> Average federal income tax refund amount: $2,023
> Federal income tax collection per filing: $9,006 (8th least)
> Median household income: $63,477 (23rd highest)
> Pct. of filers receiving refund: 61.3% (2nd least)
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48. Maine
> Average federal income tax refund amount: $2,029
> Federal income tax collection per filing: $8,380 (4th least)
> Median household income: $59,489 (19th lowest)
> Pct. of filers receiving refund: 62.5% (4th least)
47. Montana
> Average federal income tax refund amount: $2,051
> Federal income tax collection per filing: $8,549 (6th least)
> Median household income: $56,539 (11th lowest)
> Pct. of filers receiving refund: 59.8% (the least)
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46. Wisconsin
> Average federal income tax refund amount: $2,077
> Federal income tax collection per filing: $12,566 (20th least)
> Median household income: $63,293 (24th highest)
> Pct. of filers receiving refund: 69.8% (17th most)
45. Rhode Island
> Average federal income tax refund amount: $2,159
> Federal income tax collection per filing: $14,945 (15th most)
> Median household income: $70,305 (15th highest)
> Pct. of filers receiving refund: 67.2% (23rd least)
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44. Ohio
> Average federal income tax refund amount: $2,160
> Federal income tax collection per filing: $18,353 (8th most)
> Median household income: $58,116 (15th lowest)
> Pct. of filers receiving refund: 75.0% (2nd most)
43. Hawaii
> Average federal income tax refund amount: $2,163
> Federal income tax collection per filing: $8,547 (5th least)
> Median household income: $83,173 (4th highest)
> Pct. of filers receiving refund: 66.1% (18th least)
42. Minnesota
> Average federal income tax refund amount: $2,169
> Federal income tax collection per filing: $22,780 (3rd most)
> Median household income: $73,382 (13th highest)
> Pct. of filers receiving refund: 67.6% (25th least)
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41. South Carolina
> Average federal income tax refund amount: $2,175
> Federal income tax collection per filing: $8,652 (7th least)
> Median household income: $54,864 (10th lowest)
> Pct. of filers receiving refund: 68.0% (24th most)
40. Michigan
> Average federal income tax refund amount: $2,191
> Federal income tax collection per filing: $12,105 (19th least)
> Median household income: $59,234 (18th lowest)
> Pct. of filers receiving refund: 72.7% (8th most)
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39. Colorado
> Average federal income tax refund amount: $2,194
> Federal income tax collection per filing: $14,514 (19th most)
> Median household income: $75,231 (11th highest)
> Pct. of filers receiving refund: 65.7% (15th least)
38. Idaho
> Average federal income tax refund amount: $2,197
> Federal income tax collection per filing: $10,087 (11th least)
> Median household income: $58,915 (17th lowest)
> Pct. of filers receiving refund: 64.9% (9th least)
37. Pennsylvania
> Average federal income tax refund amount: $2,202
> Federal income tax collection per filing: $14,641 (16th most)
> Median household income: $63,627 (22nd highest)
> Pct. of filers receiving refund: 70.6% (16th most)
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36. New Hampshire
> Average federal income tax refund amount: $2,205
> Federal income tax collection per filing: $11,843 (17th least)
> Median household income: $77,923 (7th highest)
> Pct. of filers receiving refund: 65.8% (17th least)
35. Delaware
> Average federal income tax refund amount: $2,214
> Federal income tax collection per filing: $25,203 (the most)
> Median household income: $69,110 (16th highest)
> Pct. of filers receiving refund: 63.1% (6th least)
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34. North Carolina
> Average federal income tax refund amount: $2,217
> Federal income tax collection per filing: $13,172 (24th most)
> Median household income: $56,642 (12th lowest)
> Pct. of filers receiving refund: 69.4% (18th most)
33. Kentucky
> Average federal income tax refund amount: $2,238
> Federal income tax collection per filing: $12,892 (23rd least)
> Median household income: $52,238 (7th lowest)
> Pct. of filers receiving refund: 72.3% (11th most)
32. Maryland
> Average federal income tax refund amount: $2,252
> Federal income tax collection per filing: $19,486 (4th most)
> Median household income: $87,063 (the highest)
> Pct. of filers receiving refund: 67.0% (20th least)
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31. Arizona
> Average federal income tax refund amount: $2,253
> Federal income tax collection per filing: $10,841 (12th least)
> Median household income: $61,529 (23rd lowest)
> Pct. of filers receiving refund: 69.2% (19th most)
30. Missouri
> Average federal income tax refund amount: $2,256
> Federal income tax collection per filing: $14,580 (18th most)
> Median household income: $57,290 (13th lowest)
> Pct. of filers receiving refund: 66.6% (19th least)
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29. Indiana
> Average federal income tax refund amount: $2,271
> Federal income tax collection per filing: $13,264 (23rd most)
> Median household income: $58,235 (16th lowest)
> Pct. of filers receiving refund: 74.5% (3rd most)
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28. Iowa
> Average federal income tax refund amount: $2,272
> Federal income tax collection per filing: $11,303 (14th least)
> Median household income: $61,836 (24th lowest)
> Pct. of filers receiving refund: 65.2% (11th least)
27. Massachusetts
> Average federal income tax refund amount: $2,274
> Federal income tax collection per filing: $23,098 (2nd most)
> Median household income: $84,385 (3rd highest)
> Pct. of filers receiving refund: 65.5% (13th least)
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26. New Mexico
> Average federal income tax refund amount: $2,275
> Federal income tax collection per filing: $7,833 (3rd least)
> Median household income: $51,243 (5th lowest)
> Pct. of filers receiving refund: 72.2% (12th most)
25. Nebraska
> Average federal income tax refund amount: $2,277
> Federal income tax collection per filing: $15,435 (13th most)
> Median household income: $63,015 (25th highest)
> Pct. of filers receiving refund: 67.5% (24th least)
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24. Kansas
> Average federal income tax refund amount: $2,280
> Federal income tax collection per filing: $12,921 (24th least)
> Median household income: $61,091 (21st lowest)
> Pct. of filers receiving refund: 68.9% (21st most)
23. West Virginia
> Average federal income tax refund amount: $2,294
> Federal income tax collection per filing: $6,471 (the least)
> Median household income: $48,037 (2nd lowest)
> Pct. of filers receiving refund: 73.7% (6th most)
22. Utah
> Average federal income tax refund amount: $2,309
> Federal income tax collection per filing: $12,749 (22nd least)
> Median household income: $74,197 (12th highest)
> Pct. of filers receiving refund: 69.1% (20th most)
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21. Virginia
> Average federal income tax refund amount: $2,311
> Federal income tax collection per filing: $14,455 (20th most)
> Median household income: $76,398 (10th highest)
> Pct. of filers receiving refund: 67.0% (21st least)
20. Alabama
> Average federal income tax refund amount: $2,337
> Federal income tax collection per filing: $9,179 (9th least)
> Median household income: $52,035 (6th lowest)
> Pct. of filers receiving refund: 73.0% (7th most)
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19. Arkansas
> Average federal income tax refund amount: $2,338
> Federal income tax collection per filing: $16,222 (12th most)
> Median household income: $49,475 (3rd lowest)
> Pct. of filers receiving refund: 71.3% (13th most)
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18. Georgia
> Average federal income tax refund amount: $2,340
> Federal income tax collection per filing: $13,292 (22nd most)
> Median household income: $61,224 (22nd lowest)
> Pct. of filers receiving refund: 70.8% (15th most)
17. Washington
> Average federal income tax refund amount: $2,346
> Federal income tax collection per filing: $18,261 (9th most)
> Median household income: $77,006 (9th highest)
> Pct. of filers receiving refund: 65.8% (16th least)
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16. New Jersey
> Average federal income tax refund amount: $2,359
> Federal income tax collection per filing: $18,795 (6th most)
> Median household income: $85,245 (2nd highest)
> Pct. of filers receiving refund: 65.7% (14th least)
15. Illinois
> Average federal income tax refund amount: $2,361
> Federal income tax collection per filing: $17,378 (10th most)
> Median household income: $68,428 (17th highest)
> Pct. of filers receiving refund: 71.0% (14th most)
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14. California
> Average federal income tax refund amount: $2,371
> Federal income tax collection per filing: $16,483 (11th most)
> Median household income: $78,672 (6th highest)
> Pct. of filers receiving refund: 62.8% (5th least)
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13. New York
> Average federal income tax refund amount: $2,376
> Federal income tax collection per filing: $19,032 (5th most)
> Median household income: $71,117 (14th highest)
> Pct. of filers receiving refund: 67.0% (22nd least)
12. North Dakota
> Average federal income tax refund amount: $2,394
> Federal income tax collection per filing: $12,732 (21st least)
> Median household income: $65,315 (19th highest)
> Pct. of filers receiving refund: 65.3% (12th least)
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11. Tennessee
> Average federal income tax refund amount: $2,425
> Federal income tax collection per filing: $15,373 (14th most)
> Median household income: $54,833 (9th lowest)
> Pct. of filers receiving refund: 73.9% (5th most)
10. Alaska
> Average federal income tax refund amount: $2,426
> Federal income tax collection per filing: $11,638 (16th least)
> Median household income: $77,790 (8th highest)
> Pct. of filers receiving refund: 68.8% (23rd most)
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9. Mississippi
> Average federal income tax refund amount: $2,430
> Federal income tax collection per filing: $6,633 (2nd least)
> Median household income: $46,511 (the lowest)
> Pct. of filers receiving refund: 76.0% (the most)
8. Nevada
> Average federal income tax refund amount: $2,442
> Federal income tax collection per filing: $11,590 (15th least)
> Median household income: $62,043 (25th lowest)
> Pct. of filers receiving refund: 72.3% (10th most)
7. Connecticut
> Average federal income tax refund amount: $2,443
> Federal income tax collection per filing: $18,501 (7th most)
> Median household income: $79,855 (5th highest)
> Pct. of filers receiving refund: 65.0% (10th least)
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6. Louisiana
> Average federal income tax refund amount: $2,511
> Federal income tax collection per filing: $13,031 (25th least)
> Median household income: $50,800 (4th lowest)
> Pct. of filers receiving refund: 72.5% (9th most)
5. Florida
> Average federal income tax refund amount: $2,515
> Federal income tax collection per filing: $14,043 (21st most)
> Median household income: $57,703 (14th lowest)
> Pct. of filers receiving refund: 67.7% (25th most)
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4. South Dakota
> Average federal income tax refund amount: $2,516
> Federal income tax collection per filing: $13,105 (25th most)
> Median household income: $59,896 (20th lowest)
> Pct. of filers receiving refund: 64.1% (8th least)
3. Oklahoma
> Average federal income tax refund amount: $2,527
> Federal income tax collection per filing: $9,962 (10th least)
> Median household income: $53,840 (8th lowest)
> Pct. of filers receiving refund: 68.9% (22nd most)
2. Wyoming
> Average federal income tax refund amount: $2,590
> Federal income tax collection per filing: $11,202 (13th least)
> Median household income: $65,304 (20th highest)
> Pct. of filers receiving refund: 63.5% (7th least)
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1. Texas
> Average federal income tax refund amount: $2,682
> Federal income tax collection per filing: $14,600 (17th most)
> Median household income: $63,826 (21st highest)
> Pct. of filers receiving refund: 74.5% (4th most)
Methodology
To determine the states with the largest average tax refund, 24/7 Wall St. reviewed data on tax filings and refunds from the Internal Revenue Service. States were ranked based on the average income tax refund amount issued per return in the 2020 fiscal year. Refunds only include refunds for individual income taxes, and do not include income from Economic Impact Payments.
Data on federal income tax collection also comes from the IRS and includes collections for individual income tax, employment taxes, and estate and trust income taxes. Data on median household income is from the U.S. Census Bureau’s 2020 American Community Survey and are five-year estimates.
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