According to the Internal Revenue Service’s (IRS) most recent data, tax refunds in 2025 will vary by state, with some exceeding $6,000 and others falling below $3,200.
Income tax refunds vary by state (some apply, others do not), and some states have fixed or progressive rates. Each state has its own tax deductions and credits that affect the total amount of taxes owed or refunded.
States with the highest fiscal year tax refunds in 2025
Also, the refund is determined by the amount withheld from the taxpayer’s salary during the tax year to be reported. Deductions for mortgage interest or charitable donations, as well as credits such as the Earned Income Tax Credit (EITC) or the Child Tax Credit (CTC), affect the federal refund 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 eligible taxpayer. This state, which has no state income tax, shows a trend of large refunds, possibly due to higher federal withholdings.
Florida remains in second place, with an average refund of $5,934, helped by the lack of a state income tax. The District of Columbia ranks third, with $5,848, demonstrating how high-income urban areas can influence the amounts.
The beautiful state of Connecticut ranks fourth on the list, with an average tax refund 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 could result in higher federal withholdings and thus higher 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 place, followed by Illinois with $4,604 in ninth. New Jersey rounds out the top ten with an average refund of $4,541, which reflects a combination of high income and state tax policies.
States with the lowest tax refunds in 2025
West Virginia leads the list of states with the lowest refunds, with an average of only $3,183 per taxpayer. This amount could indicate a lower income or less withholding than in other states.
Maine is second lowest, with an average of $3,199. This state has consistently had lower refunds in previous years, which could 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 with economies that may influence lower federal withholdings.
Kentucky ranks fifth at $3,490, followed by Iowa at $3,537. In 2025, these Midwestern and Southern states are likely to offer more modest refunds.
Ohio, for example, has an average of $3,563 in 2025, ranking seventh, followed by Vermont at $3,575 in eighth. Wisconsin ranks ninth, with $3,580 in refunds, slightly higher but still among the lowest.
Minnesota rounds out the list of states with the smallest refunds, with an average of $3,664 in 2025.
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