The IRS sent $324 billion back to taxpayers in 2018; the average tax refund was $2,727.
Business Insider analyzed data from the IRS to find the average federal tax refund in each state and Washington, DC. To do so, we looked at the total income tax refund for each state for fiscal year 2017 (or tax year 2016) and divided it by the number of refunds there.
Maine had the lowest average tax refund, with $2,336, while Texas had the highest, with an average of $3,206. Northern states were more likely to receive smaller tax refunds — seven of the 10 states with the lowest average refunds share a border with Canada.
California, the most populous state in America, led the way with the most refunds and largest total amount in refunds but missed the top 10 in average refunds, coming in at No. 11. Wyoming, the least populous, had the fewest refunds, but residents had the 7th-highest average tax refund.
Getting a smaller tax refund may be a smart move, says Business Insider's Lauren Lyons Cole, a certified financial planner. She says that overpaying your tax bill by withholding too much from your paycheck is basically an interest-free loan to the government.
Scroll through to see how much the average person gets back in every state, ordered from the biggest federal tax refund to the smallest. We also included the total amount in tax refunds in each state and the number of federal tax refunds received.
Matthew Michaels contributed to an earlier version of this post.
Finding a good CPA for your taxes is simple with these seven tips: 1. Ask about their specialization; 2. Verify their identification number, 3. Look up their license, 4. Consider their experience, 5. Confirm their willingness to sign, 6. Ask for advice, and 7. Determine their fees.
Congress has passed the largest piece of tax reform legislation in more than three decades. The bill went into place on January 1, 2018, which means that it will affect the taxes of most taxpayers for the 2018 tax year.