The Internal Revenue Service collected more than $3.5 trillion in taxes in 2019. Not all of this money went to funding the government, however. Nearly half of all tax returns filed by individuals, corporations, and estates received a refund.
Altogether, the IRS issued nearly 122 million refunds totaling $452.1 billion, at an average of $3,709 per refund. There are a number of variables that affect the amount that is refunded, one of which is location. The average refund varies by state from under $2,500 to more than $8,700.
To determine the average tax refund in every state, 24/7 Wall St. reviewed data on tax refunds from the IRS.
Though the average refund nationwide was just over $3,700 in 2019, only four states actually exceeded that amount. This is in large part because one state, Delaware, skewed the average, with an average refund of nearly $8,800. Many of these refunds were issued to some of the 1.5 million companies incorporated in the state. The state attracts many businesses because of its corporate-friendly tax laws, which includes having no residency requirement and providing anonymity to corporate executives.
Federal taxes are, of course, far from the only taxation Americans face. They also have to pay state income taxes and other state and local taxes, including gas taxes, which range from 13 to 63 cents, depending on the state. These are the states with the highest and lowest gas taxes.
Sponsored: Tips for Investing
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.