According to the most current statistics given by the Internal Revenue Service (IRS), tax refunds in 2025 would vary by state, with some exceeding $6,000 and others falling below $3,200.
Income tax refunds vary by state (some apply, some do not), and some states have set or progressive rates. Each state has its unique tax deductions and credits that affect the total amount of taxes due or reimbursed.
States with the highest fiscal year tax refunds in 2025
Also, the refund is determined by the amount withheld from the taxpayer’s wage for the tax year to be reported. Deductions for mortgage payments or charitable contributions, as well as credits such as the Earned Income Tax Credit (EITC) or the Child Tax Credit (CTC), impact the federal return and vary by individual circumstances.
For starters, Wyoming leads the list of states with the largest federal tax refunds in 2025, with an average of $6,367 for each qualifying taxpayer. This state, which has no state income tax, has a pattern of large refunds, probably owing to increasing federal withholdings.
Florida continues in second position, with an average return of $5,934, helped by the lack of a state income tax. The District of Columbia is third, at $5,848, demonstrating how high-income metropolitan regions may impact the numbers.
The picturesque state of Connecticut ranks fourth on the list, with an average tax return of $5,284, while the northern state of New York ranks fifth, with an average refund of $5,263. Both states have high state taxes, which might result in larger federal withholdings and hence bigger refunds.
Massachusetts ($5,092) and Nevada ($5,090) are ranked sixth and seventh, respectively. Nevada, like Wyoming and Florida, has no state income tax, which may affect refund patterns.
Texas is second to last on this list, with an average of $4,921, putting it in eighth position, followed by Illinois with $4,604 in ninth. New Jersey rounds out the top ten with an average return of $4,541, which reflects a mix of high income and state tax policy.
States with the lowest tax refunds in 2025
West Virginia leads the list of states with the lowest refunds, with an average of just $3,183 per taxpayer. This figure might indicate a lower income or less withholding than in other states.
Maine is second lowest, at an average of $3,199. This state has routinely had fewer refunds in past years, which might be attributed to its economic and demographic makeup.
New Mexico has the third-lowest refund, at $3,394. Oregon comes in fourth with $3,472, both having economies that may influence lower federal withholdings.
Kentucky is fifth at $3,490, followed by Iowa at $3,537. In 2025, these Midwestern and Southern states are likely to provide relatively modest refunds.
Ohio, for example, has an average of $3,563 in 2025, placing seventh, followed by Vermont with $3,575 in eighth. Wisconsin ranks ninth, with $3,580 in reimbursements, significantly higher but still among the lowest.
Minnesota rounds off the list of states with the lowest refunds, with an average of $3,664 in 2025.