A tax refund can come as welcome news when it’s time to file your return. But how much can you expect to get back each year? A tax refund calculator can help you figure that out.
Learn how a tax refund calculator works, plus what details impact whether or not you’re overpaying the federal government.
Key Points
• A tax refund calculator compares your tax withholding to the amount you owe.
• When you pay too much in taxes throughout the year, the government sends you the excess as a refund.
• You can start tracking your refund in as little as 24 hours when you e-file.
• Tax deductions and credits may contribute to your refund.
• The average American tax refund in 2025 is $2,945.
What Is a Tax Refund Calculator?
A federal tax refund calculator looks at your gross income for the year — that’s the amount you earned before any tax withholdings from your paycheck. Then it factors in deductions, including standard or itemized deductions, eligible retirement account contributions, HSA contributions, and any applicable tax credits.
Next, it applies the appropriate tax bracket to your final taxable income to determine how much you owe for the year. Finally, it will subtract any tax payments you made throughout the year, such as those through paychecks or estimated tax payments, from your owed amount. If you overpaid, you’ll be repaid the difference in the form of a tax refund.
How to Track Your Tax Refund
As you prepare for tax season, it helps to understand how long it will take to receive your refund after you file taxes. That way you can account for the funds in your online budget planner for the right time frame, rather than incorrectly assuming when you’ll have that extra cash in the bank.
You can check your federal refund through the IRS website. The information is available more quickly when you e-file your tax return. You can start tracking within 24 hours for a current tax year return or up to four days after e-filing a previous year’s return. If you file a paper return, it can take as long as four weeks to see your refund status.
When you visit the IRS website, be prepared to provide a few basic pieces of personal information: your Social Security number or individual taxpayer ID number; filing status; and the exact refund amount from your return. One of the most common tax filing mistakes is to input the wrong Social Security number, so check your return and refund request carefully before submitting.
How to Calculate Federal Tax Refunds in 2025-2026
Your actual refund amount may vary every year based on changes in your income, eligible deductions, and IRS changes to income tax rates and brackets. So only use a 2024 tax refund calculator for that year’s return, then look for a tax refund calculator for 2025 for this year.
The actual calculation depends on the complexity of your income. For instance, it’s much simpler if you only have W2 income that you’ve already paid taxes on. It can get a little more complicated if you also have things like taxable investment income and self-employment income.
Start with the IRS tax refund calculator to estimate the correct federal income tax withholding. Then you can determine whether or not you’ll get a refund based on how much you’ve already paid throughout the year.
Recommended: 13 Steps to Prepare for Tax Season
How Is the Tax Refund Determined?
The size of your tax refund is determined by the amount of taxes already withheld and the actual tax you owe. If you’ve overpaid throughout the year, the government issues a refund. This applies to several types of taxes, including income taxes and capital gains tax.
On the IRS tax refund calculator for 2024-2025, you’ll need to provide information such as:
• Tax filing status
• Eligible tax deductions or credits
• Sources of income
• Salary or wages
• Tax withholdings
• Estimated tax payments
Once you enter in all of the information, you’ll see your expected tax withholding, how much you will likely owe in taxes, and your projected refund.
Average American Tax Refund
Here is the average federal tax refund by year, using IRS data from late April each year.
| Year | Average Federal Tax Refund |
|---|---|
| 2025 | $2,945 |
| 2024 | $2,852 |
| 2023 | $2,777 |
| 2022 | $3,019 |
| 2021 | $2,870 |
More than 90 million taxpayers received refunds as of April 2025, for a grand total of $265.6 billion. The vast majority is refunded via direct deposit.
The average tax refund varies by location. Here’s a comparison of what the average taxpayer in each state received as a refund in 2022.
| State | Average Federal Tax Refund |
|---|---|
| Alabama | $3,357 |
| Alaska | $3,206 |
| Arizona | $3,179 |
| Arkansas | $3,224 |
| California | $3,344 |
| Colorado | $3,142 |
| Connecticut | $3,362 |
| Delaware | $3,048 |
| Florida | $3,852 |
| Georgia | $3,574 |
| Hawaii | $3,011 |
| Idaho | $3,040 |
| Illinois | $3,394 |
| Indiana | $3,028 |
| Iowa | $2,924 |
| Kansas | $3,000 |
| Kentucky | $2,922 |
| Louisiana | $3,577 |
| Maine | $2,656 |
| Maryland | $3,242 |
| Massachusetts | $3,327 |
| Michigan | $3,047 |
| Minnesota | $2,838 |
| Mississippi | $3,491 |
| Missouri | $2,991 |
| Montana | $2,870 |
| Nebraska | $2,935 |
| Nevada | $3,643 |
| New Hampshire | $3,091 |
| New Jersey | $3,317 |
| New Mexico | $2,912 |
| New York | $3,339 |
| North Carolina | $3,077 |
| North Dakota | $3,063 |
| Ohio | $2,874 |
| Oklahoma | $3,213 |
| Oregon | $2,772 |
| Pennsylvania | $3,011 |
| Rhode Island | $2,871 |
| South Carolina | $3,020 |
| South Dakota | $3,004 |
| Tennessee | $3,192 |
| Texas | $3,774 |
| Utah | $3,210 |
| Vermont | $2,816 |
| Virginia | $3,217 |
| Washington | $3,310 |
| West Virginia | $2,834 |
| Wisconsin | $2,737 |
| Wyoming | $3,720 |
Source: IRS
Example Tax Refund Scenarios
There are several scenarios in which your withholding total is more than you actually end up owing on your tax return. This is usually due to tax deductions and credits. Here are some examples:
• Tax credits: There are several tax credits that can lower the amount you owe, including the child tax credit and the earned income tax credit. For instance, the child tax credit allows eligible taxpayers to deduct up to $2,000 per child who is 16 years or younger. Up to $1,700 can be taken as a refund. So for a family with two kids, that could add as much as $3,400 to your refund (if not already accounted for in your withholding).
• Tax deductions: Some 90% of taxpayers take the standard deduction instead of itemizing eligible deductions. In 2025, the standard deduction is $15,000 for single taxpayers, and $30,000 for those who are married and filing jointly. That can greatly reduce the amount of taxable income you have — and could even drop you into a lower tax bracket.
Another example of a refund is paying taxes when you don’t actually earn enough to owe. There’s a minimum for how much you have to make to file taxes for each filing status.
How Tax Refunds Impact You
It’s usually good news to find out you’re getting a tax refund instead of owing more on your federal return, especially if you’re filing taxes for the first time or recently increased your income. However, it’s also important to consider that when you get a refund every year, you’re essentially overpaying your taxes. Instead of getting a large lump sum after filing, you could adjust your withholding to enjoy a larger paycheck each month.
When you do get a tax refund, resist the urge to immediately spend it and instead make a strategic plan for the extra funds. One potential money move to make is to pay off high-interest debt like credit card balances. A credit monitoring service can show you your current credit score and what actions can improve it. If you have a lot of outstanding revolving credit, using your tax refund to pay off a chunk could boost your score.
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Recommended: 10 Personal Finance Basics
The Takeaway
A tax refund calculator can be a helpful tool in figuring out if you can expect any money back after filing your taxes. But keep in mind that you’ll need a smart financial plan anytime you get a windfall amount of cash.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
FAQ
When can I expect my tax refund 2025 IRS?
Most federal tax refunds are sent within 21 calendar days of filing your return. The fastest way to get your refund is to e-file and choose direct deposit.
Will tax refunds be bigger in 2025?
You could get a bigger tax refund in 2025 if your income doesn’t increase. That’s because deductions and tax bracket incomes increase each year in order to account for inflation.
Are we getting a Child Tax Credit in 2025?
Yes, the Child Tax Credit is still in place for 2025.
Why is my refund so low in 2025?
There are a few different reasons why your refund could be low in 2025. You may not have withheld enough, or some of your deduction and credit eligibility may have changed. If you earned more for the year, you may owe more taxes on that income, resulting in a lower refund.
How long is it taking to get tax refunds in 2025 with a child?
The typical refund timeline for the IRS is 21 days or less, regardless of whether you have a child dependent.
What is the tax offset for 2025?
If you owe any money to the federal government but have a tax refund, they may withhold that money as an offset to put towards the existing debt. This can include things like past-due child support, federal agency nontax debt, and even state income tax debt.
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