Tax refunds in 2025 will not be the same in all US states, as in some they will exceed $6,000 while in others they will be below $3,200, according to the most recent data published by the Internal Revenue Service (IRS).
There are variations in tax refunds due to income taxes (some states apply it, others do not), either fixed rates or progressive rates that are in effect in some states. Each state has its own tax deductions and credits, which influence the final amount of taxes owed or refunded.
States with the highest fiscal year tax refunds in 2025
Also note that the refund depends on how much was withheld from the taxpayer’s salary in the tax year to be reported. Deductions such as those for mortgage interest or charitable donations, and credits such as the Earned Income Tax Credit (EITC) or the Child Tax Credit (CTC), vary depending on individual circumstances and affect the federal refund.
For starters, Wyoming tops the list of states with the highest federal tax refunds in 2025, averaging $6,367 per eligible taxpayer. This state, which has no state income tax, reflects a trend of high refunds, possibly due to higher federal withholdings.
Florida remains in second place, with an average refund of $5,934, also benefiting from the absence of a state income tax. The District of Columbia comes in third, at $5,848, showing how high-income urban areas can influence the amounts.
In fourth place on the list is the beautiful state of Connecticut, where the tax refund averages $5,284, while in the northern state of New York, the average amount that qualified taxpayers will receive will be $5,263, to occupy fifth place. Both states have high state taxes, which could correlate with higher federal withholdings and therefore higher refunds.
Massachusetts, at $5,092, and Nevada, at $5,090, rank sixth and seventh, respectively. Nevada, like Wyoming and Florida, has no state income tax, which could influence refund patterns.
Second to last on this list, Texas reports an average of $4,921, placing it in eighth place, followed by Illinois with $4,604 in ninth. New Jersey closes out the top ten, with an average refund of $4,541, reflecting a combination of high income and state tax policies.
States with the lowest tax refunds in 2025
At the other end of the table, the states with the lowest refunds start led by West Virginia: there, the average will be just $3,183 per taxpayer. This amount could reflect either lower income or less withholding compared to other states.
Maine ranks second lowest, with an average of $3,199. This state has consistently shown lower refunds in previous years, which could be related to its economic and demographic structure.
New Mexico clocks in at $3,394, placing third among states with the lowest refunds. Oregon follows, with $3,472, in fourth place, both with economies that could influence lower federal withholdings.
Kentucky, at $3,490, is in fifth place, while Iowa, at $3,537, is in sixth. These Midwestern and Southern states are trending toward more modest refunds in 2025.
Ohio, for its part, has an average of $3,563 in 2025, ranking seventh, followed by Vermont with $3,575 in eighth. Wisconsin, at $3,580, is in ninth place, showing slightly higher refunds but still among the lowest.
We finish the list of the smallest refunds with Minnesota, which averages $3,664 in 2025.
