Tax refunds are bigger than ever this year, but residents of 5 states are cashing in the most

Americans are facing a midnight deadline to file their 2025 tax return, but the refunds that await the majority of taxpayers are larger on average than a year ago – with taxpayers in certain states receiving higher refunds, according to a new report.

An analysis by Upgraded Points of how refund amounts have changed across geographic areas and income levels finds that the estimated average refund for 2026 is $3,571, with 72.9% of taxpayers receiving refunds. That's above the record set in 2022 of $3,252, though the share of refund recipients is down from 77.1% in 2021.

The larger refunds across the nation come following the enactment of the One Big Beautiful Bill Act, which extended a host of tax policies that were set to expire and included new policies aimed at providing tax relief for income from tips and overtime, Social Security, and other provisions like the auto loan interest deduction for new, U.S.-made cars.

While those policy changes occurred for all U.S. taxpayers, residents of some states are seeing larger refunds than their peers in other parts of the country based on the IRS data used to compile the report.

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The Upgraded Points analysis found that the state with the highest average refund was Florida with $4,433 after adjusting for inflation. That's out of more than 11.1 million federal tax returns filed, of which 67.1% yielded a refund for the taxpayer.

"While Tax Day isn't usually a day for celebration, Americans can rejoice knowing they will likely receive a larger tax return or owe less than in years past. I am proud to have supported the Working Families Tax Cut Package – the largest tax cut in history for working Americans," Sen. Ashley Moody, R-Fla., told FOX Business.

"On average, Floridians will receive the largest average federal tax refunds in the country, keeping hard earned dollars in the pockets of workers, families, and businesses," Moody added.

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Texas ranked second with an average refund of $4,344 out of 13.6 million returns filed by Lone Star State taxpayers, with 71.3% receiving a refund.

A pair of states in the Mountain West ranked third and fourth, with Wyoming taxpayers getting an average refund of $4,282 with 68.8% of the 280,750 returns filed receiving a refund, followed by Nevada's average refund of $4,193 with 69.6% of the Silver State's 1.6 million returns receiving a refund.

Louisiana rounded out the top five with an average refund of $4,117 across nearly 2 million returns filed with a 73% refund rate, which Upgraded Points noted ranked as the third-highest refund rate among states.

The county level data in the report showed even higher refunds in wealthy enclaves around the country. 

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Wyoming's Teton County, which is home to the town of Jackson, had the largest average refund in the country of $15,156, out of the 15,210 federal returns filed with only 51.9% receiving a refund.

Pitkin County, Colorado, which is where the town of Aspen is located, had an average refund of $8,756 based on 10,520 returns filed with a 52% refund rate. 

Utah's Summit County, which includes Park City, had an average refund of $8,481 with 55.8% of the nearly 25,000 returns filed receiving a refund.

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Collier County, Florida, home to the city of Naples, had an average refund of $7,764 with 56.6% of the 214,600 filers receiving a refund.