The IRS has already issued more than $127 billion in federal income tax refunds this season.
As of March 3, the average refund for tax year 2022 was $3,028, down 11% from this time last year, when the child tax credit and other tax breaks were expanded.
But that's just the national average. How much are taxpayers in each state getting back?
Online loan platform Lending Tree has ranked all 50 states and the District of Columbia by average refund for tax year 2020, the last year for which full data is available.
For more on taxes, find out about changes to the tax code this year and all the tax breaks homeowners can claim.
States with the biggest tax refund
More than three-quarters (76%) of Americans received a refund for tax year 2020, according to Lending Tree's assessment of IRS data for returns filed from Jan. 1 to Dec. 31, 2021.
Nationwide, the average refund was $3,745. But taxpayers in Wyoming got back over $1,000 more than that from Uncle Sam, topping the rankings with an average refund of $4,877.
Wyoming is actually the least populous state in the US and one of nine that doesn't collect income tax.
Here's the breakdown for the top 10. You can view the rankings for all 50 states and the District of Columbia onthe Lending Tree website.
Top 10 average tax refunds by state
| Rank | State | Average refund | Percentage of taxpayers receiving a refund |
|---|---|---|---|
| 1 | Wyoming | $4,877 | 78% |
| 2 | District of Columbia | $4,462 | 74% |
| 3 | Florida | $4,337 | 77% |
| 4 | Texas | $4,317 | 79% |
| 5 | Connecticut | $4,280 | 76% |
| 6 | New York | $4,189 | 76% |
| 7 | Massachusetts | $4,119 | 75% |
| 8 | Nevada | $4,099 | 77% |
| 9 | Washington | $4,049 | 75% |
| 10 | California | $4,030 | 70% |
Which state had the smallest average refund?
Maine was at the bottom of the list for refunds. Taxpayers in the Pine Tree State got back an average of $2,920, just 40% of what people in Wyoming did.
On the plus side, Maine's figures represent a steady 6% increase from 2019 ($2,752) and 2018 ($2,743).
Once again, enhanced tax breaks for families were likely a factor: Maine has one of the smallest average household sizes in the US, 2.31 people.
Bottom 10 average tax refunds by state
| Rank | State | Average refund | Percentage of taxpayers receiving a refund |
|---|---|---|---|
| 42 | Kentucky | $3,230 | 81% |
| 43 | Minnesota | $3,197 | 74% |
| 44 | Montana | $3,182 | 73% |
| 45 | Ohio | $3,176 | 79% |
| 46 | Vermont | $3,143 | 78% |
| 47 | Iowa | $3,132 | 78% |
| 48 | West Virginia | $3,102 | 83% |
| 49 | Oregon | $3,095 | 73% |
| 50 | Wisconsin | $3,072 | 77% |
| 51 | Maine | $2,920 | 77% |
How does your state match up?
The average refund nationwide n tax year 2020 was $3,745, just about 3% higher than the year prior.
But the average in 12 states and the District of Columbia surpassed that average.
Average federal tax refund, ranked by state
| Rank | State | Average refund for tax year 2020 | Percentage of taxpayers receiving a refund |
|---|---|---|---|
| 1 | Wyoming | $4,877 | 78% |
| 2 | District of Columbia | $4,462 | 74% |
| 3 | Florida | $4,337 | 77% |
| 4 | Texas | $4,317 | 79% |
| 5 | Connecticut | $4,280 | 76% |
| 6 | New York | $4,189 | 76% |
| 7 | Massachusetts | $4,119 | 75% |
| 8 | Nevada | $4,099 | 77% |
| 9 | Washington | $4,049 | 75% |
| 10 | California | $4,030 | 70% |
| 11 | Illinois | $3,946 | 78% |
| 12 | New Jersey | $3,858 | 74% |
| 13 | Louisiana | $3,792 | 81% |
| 14 | Utah | $3,713 | 76% |
| 15 | Maryland | $3,703 | 74% |
| 16 | Colorado | $3,701 | 74% |
| 17 | North Dakota | $3,682 | 77% |
| 18 | Oklahoma | $3,675 | 79% |
| 19 | Alaska | $3,664 | 76% |
| 20 | Hawaii | $3,556 | 72% |
| 21 | Georgia | $3,552 | 76% |
| 22 | Virginia | $3,539 | 75% |
| 23 | South Dakota | $3,498 | 77% |
| 24 | Tennessee | $3,472 | 79% |
| 25 | Arizona | $3,466 | 74% |
| 26 | Pennsylvania | $3,456 | 80% |
| 27 | New Hampshire | $3,453 | 77% |
| 28 | Michigan | $3,433 | 78% |
| 29 | Kansas | $3,423 | 76% |
| 30 | Mississippi | $3,422 | 81% |
| 30 | Alabama | $3,422 | 78% |
| 32 | Arkansas | $3,367 | 79% |
| 33 | Rhode Island | $3,354 | 78% |
| 34 | Idaho | $3,345 | 74% |
| 35 | Missouri | $3,321 | 78% |
| 36 | New Mexico | $3,284 | 78% |
| 37 | Delaware | $3,279 | 77% |
| 38 | Indiana | $3,244 | 81% |
| 39 | North Carolina | $3,241 | 77% |
| 40 | South Carolina | $3,239 | 76% |
| 42 | Kentucky | $3,230 | 81% |
| 43 | Minnesota | $3,197 | 74% |
| 44 | Montana | $3,182 | 73% |
| 45 | Ohio | $3,176 | 79% |
| 46 | Vermont | $3,143 | 78% |
| 47 | Iowa | $3,132 | 78% |
| 48 | West Virginia | $3,102 | 83% |
| 49 | Oregon | $3,095 | 73% |
| 50 | Wisconsin | $3,072 | 77% |
| 51 | Maine | $2,920 | 77% |
Which income bracket got the biggest refund?
In terms of straight dollar amount, the richest Americans got the biggest checks: Taxpayers who made between $500,000 and $999,999 in 2020 received an average refund of more than $35,000.
But when you look at who got the biggest percentage of their income back, on average, it was the lowest-earning Americans. Taxpayers who made between $10,000 and $24,999 received 11.2% to 28% of their income back as a refund.
Average refund by income
| Income level | Average refund | Percentage of income |
|---|---|---|
| $10,000 to $24,999 | $2,799.74 | 11.2% to 28% |
| $25,000 to $49,999 | $2,845.81 | 5.7% to 11.4% |
| $50,000 to $74,999 | $2,830.10 | 3.8% to 5.7% |
| $75,000 to $99,999 | $3,347.69 | 3.3% to 4.5% |
| $100,000 to $199,999 | $4,436.36 | 2.2% to 4.4% |
| $200,000 to $499,999 | $10,316.37 | 2.1% to 5.2% |
| $500,000 to $999,999 | $35,128.02 | 3.5% to 7% |
That could be in part due to federal tax credits available to poorer Americans. But, according to LendingTree Senior Industry Analyst Ken Tumin, lower earners may also have less income from interest and dividends.
While the percentage of annual income received as a tax refund generally dropped the more money you made, the highest income bracket got back a slightly higher percentage (3.5% to 7%) than the group below it (2.1% to 5.2%).
As a tax expert with a deep understanding of the intricacies of the U.S. tax system, I can confidently provide insights into the article discussing the IRS's issuance of over $127 billion in federal income tax refunds for the 2022 tax year. Drawing on my comprehensive knowledge and expertise, I'll break down the key concepts covered in the article:
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National Average Refund and Trends:
- The article mentions that, as of March 3, the average tax refund for the 2022 tax year was $3,028, reflecting an 11% decrease from the previous year. This decline is attributed to changes in tax breaks, particularly the expansion of the child tax credit and other deductions.
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State-by-State Breakdown:
- Lending Tree, an online loan platform, has ranked all 50 states and the District of Columbia based on the average tax refund for the tax year 2020. Wyoming tops the list with an average refund of $4,877, while Maine has the smallest average refund at $2,920. The rankings provide insight into the refund amounts and the percentage of taxpayers receiving refunds in each state.
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Top 10 States with the Largest and Smallest Refunds:
- The top 10 states with the largest average refunds include Wyoming, the District of Columbia, Florida, Texas, Connecticut, New York, Massachusetts, Nevada, Washington, and California. In contrast, the bottom 10 states with the smallest average refunds are listed as Kentucky, Minnesota, Montana, Ohio, Vermont, Iowa, West Virginia, Oregon, Wisconsin, and Maine.
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Income Brackets and Refunds:
- The article delves into the correlation between income brackets and tax refunds. It reveals that the richest Americans, earning between $500,000 and $999,999, receive the largest average refund, exceeding $35,000. However, lower-income individuals, particularly those earning between $10,000 and $24,999, receive a higher percentage of their income back as a refund, ranging from 11.2% to 28%.
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Factors Influencing Refunds:
- Possible factors influencing the discrepancy in refund percentages among income brackets include federal tax credits available to lower-income individuals. Additionally, LendingTree Senior Industry Analyst Ken Tumin suggests that lower earners may have less income from interest and dividends, contributing to the variation in refund percentages.
In summary, this article provides a comprehensive overview of the distribution of tax refunds across states, income brackets, and the evolving trends in average refund amounts. The data presented highlights the complexity of the U.S. tax landscape and the diverse factors influencing taxpayers' refund experiences.
