Average Tax Refund by Income Level in the US

Each spring the IRS releases aggregate statistics on millions of filed returns. The numbers consistently tell the same story: refund size is not linear with income. Lower-income filers often get back more than they paid in thanks to refundable credits; higher-income filers tend to owe a balance; and the middle is dominated by wage earners who over-withhold by small amounts and receive modest checks. Here's what the 2023 Statistics of Income data (the most complete available as of 2026) actually shows.

What the IRS data shows

• Under $25,000: average refund ~$1,700, driven heavily by the Earned Income Tax Credit (average EITC ~$2,400 for qualifying filers). Many in this bracket receive more back than they paid in federal income tax.
• $25k–$50k: average refund ~$2,100. This group includes many families with children claiming the Child Tax Credit. EITC phases out at the upper end.
• $50k–$75k: average refund ~$2,300. The sweet spot for FICA-heavy take-home with modest over-withholding.
• $75k–$100k: average refund ~$2,800. Higher incomes mean higher withholding totals; marginal over-withholding stays proportional.
• $100k–$200k: average refund ~$3,400, but balance-due filers become much more common — especially for dual-earner households and those with freelance income.
• Above $200k: averages lose meaning. This group includes both large refunds (very high withholding, SALT over-withholding) and large balances due (investment income, estimated tax gaps).

Why lower-income households often get large refunds

The Earned Income Tax Credit is refundable and scales with the number of qualifying children. A married couple with three children earning $52,000 can receive an EITC of up to $7,830 in 2026. Combined with the refundable portion of the Child Tax Credit, total refundable credits can significantly exceed federal income tax withheld — producing a net payment from the government. This is by design; Congress uses refundable credits as a targeted income support mechanism.

Why higher earners often owe

W-4 withholding is calibrated for each job individually. A household with two earners at $90,000 each loses the benefit of the MFJ standard brackets being applied to the combined income but has each employer withhold as if the other income didn't exist. The result is chronic under-withholding. Add a side business, an investment account, or a rental property, and the gap grows wider.

State refunds are separate

The figures above are federal only. State refund averages vary dramatically: New Yorkers and Californians often receive state refunds of $700–$900 because state withholding tables tend to be conservative. Florida, Texas, and Nevada residents have no state income tax and receive no state refund. Use our salary calculator to see your specific state tax picture.

What an unusually large refund means

A refund over $5,000 usually means one of three things: a large refundable credit (EITC, Child Tax Credit), significant over-withholding (common when someone works two jobs at different times of year), or a carryback of net operating losses from a business. If none of those apply, review your W-4 — you may be over-withholding by design, essentially giving the IRS an interest-free loan.

Sources: IRS Statistics of Income 2023 individual returns (Publication 1304), IRS EITC statistics, and Treasury Department tax expenditure estimates.