By tax deadline day, which this year is April 17, over 150 million American households will file personal income tax returns. Many who file hope for a substantial refund to help pay for essentials, a big item, or for some luxury like a vacation.
During the 2016 tax season, the federal government collected over $3.3 trillion in tax revenue through the corporate tax, individual income tax, estate tax, sales tax, and others. After processing all returns and associated documents, numbering over 240 million, it issued over 120 million refunds than $426 billion in tax refunds. The average refund issued for taxes paid in 2016 was $3,484.
The size of a household’s tax return depends on many factors, including differences in state tax laws and income. There was a substantial difference in the size of the average tax return by state, which ranged from less than $2,500 to well over $4,000.
Based on data compiled by the Internal Revenue Service’s 2016 Data Book, 24/7 Wall St. reviewed each state’s tax data and ranked states from the lowest average federal refund to the highest.