DALLAS (KDAF) — Anticipation of any kind can be a crazy experience, especially when money is involved and awaiting your tax refund to hit your bank account in the first half of the year is a good example of one of those experiences, especially for working-class Americans.
Have you ever thought about if where you live is maximizing your potential tax refund?
A study from Smart Asset found the states with the largest tax refunds in 2023, “The majority of people who file a U.S. tax return every year end up getting a refund. For the 2021 tax year, which involved tax returns filed in 2022, U.S. taxpayers logged an average refund of $1,798.”
Of course, Texas was ranked in the top three as they’re one of the states without an income tax and Texans received an average federal tax refund of $1,783 in 2021.
- North Dakota
- South Dakota
The study explains, “Four income-tax-free states rank in the top 10. These states are Wyoming, Texas, Alaska and South Dakota. (In total, nine states have no income tax.) Wyoming residents saw refunds of $1,802. Texas residents took home $1,783. Alaska taxpayers had refunds of $1734. For South Dakota, the average refund totaled $1,721. For context, the national average tax refund amount in 2021 was $1,798.”