Americans received more from tax refund than predicted

Are "responsible tax refunds" on the rise? A new survey shows taxpayers are more likely to spend their refunds on rent, groceries and other necessities, rather than luxuries.

The poll of 2,000 U.S. taxpayers found nearly two in three (64%) have either already spent their tax refund money or are planning to soon. And all agree their refunds will be spent on necessary purchases.

Commissioned by TaxSlayer and conducted by Talker Research, the two-part study compared Americans’ initial tax refund ambitions pre-Tax Day to their post-Tax Day realities.

Four in five who have already spent their refunds spent it on essentials; top spends include bills like rent (58%), groceries (48%), paying down credit card debt (29%) and home repairs (13%).

Likewise, 72% who haven't already spent their refunds are planning to invest it all in necessities.

The study revealed that participants received more than $2,300 on average in their refunds this year — higher than the average $1,700 that was predicted when the first study on this topic was conducted in December 2024.

Six in 10 (61%) said their refunds are an important part of their budgeting plans for 2025; an increase from 52% who felt the same about the role refunds played in their 2024 budgeting.

When asked in December, only 22% of Americans believed they would receive more this year than last, and 26% believed they would receive less. When asked how much they actually received, one-third (32%) said they received more this year than last year, while 28% reportedly received less.

The primary reasons people believe they received more this year were: working more (37%), adjustment of deductions or withholdings (31%), and getting a pay raise or promotion (16%).

Meanwhile, participants who received a smaller refund amount believe it was likely due to losing work (29%), moving to a higher tax bracket (21%) and having dependents age out of eligibility (11%).

Sixty-two percent felt happy and surprised by the amount they received; another major increase from last year, when a mere 40% recalled feeling happy with their 2024 tax refund.

“This study confirms that people are strategic about how they use their tax refunds in general,” said Seth Babb, Head of Consumer Product at TaxSlayer. "By planning ahead, you can focus on what’s essential and be intentional about your spending decisions."

The study also revealed the filing habits of taxpayers. In December, 43% of respondents said they were planning to file their taxes early and 54% were planning to file on time.

In reality, 41% filed early and 57% filed on time. Only 2% said they asked for an extension.

Respondents from the previous survey shared they were motivated to file early because it meant receiving their refund earlier, not needing to deal with Tax Day stress and having filed early in 2024.

The pattern is largely set to continue for the year ahead. Respondents said they'll likely file early in 2026 because it means getting their refund earlier (47%), they want to avoid stress (29%), they filed early this year (18%) and they’ll be able to spend their refund sooner (18%).

A large majority of respondents (89%) said they filed their taxes the same way this year as they did last year. As an indicator, the December study found people were most likely to use DIY tax software (37%) or file manually using paper forms (19%).

However, 10% said they'll be doing something different next year. In 2026, they said they'll try filing online (40%), seek out a CPA (27%) or use a different tax preparation software (16%).

"It's always a good idea to file early," Babb emphasized. "Getting your taxes done early means you have more time to plan, more options, and a clearer financial picture for the year ahead."

WHAT WERE THE ACTUAL TOP NECESSITIES PEOPLE SPENT THEIR REFUNDS ON?

Respondents were asked to choose all the necessities they spent their refunds on. Here’s what they said:

NECESSITIES

• Bills, like rent and utilities - 58%
• Groceries and essential goods - 48%
• Credit card debt - 29%
• Home repair/improvement - 13%
• Miscellaneous spending - 10%
• Savings accounts - 7%
• Childcare costs - 4%
• Paying down student debt - 3%

Survey methodology:

Talker Research surveyed 2,000 Americans who pay taxes and have received any kind of tax refund this year; the survey was commissioned by TaxSlayer and administered and conducted online by Talker Research between Dec. 13 and Dec. 20, 2024 and between Apr. 10 and Apr. 27, 2025.

We are sourcing from a non-probability frame and the two main sources we use are:

• Traditional online access panels — where respondents opt-in to take part in online market research for an incentive
• Programmatic — where respondents are online and are given the option to take part in a survey to receive a virtual incentive usually related to the online activity they are engaging in

Those who did not fit the specified sample were terminated from the survey. As the survey is fielded, dynamic online sampling is used, adjusting targeting to achieve the quotas specified as part of the sampling plan.

Regardless of which sources a respondent came from, they were directed to an Online Survey, where the survey was conducted in English; a link to the questionnaire can be shared upon request. Respondents were awarded points for completing the survey. These points have a small cash-equivalent monetary value.

Cells are only reported on for analysis if they have a minimum of 80 respondents, and statistical significance is calculated at the 95% level. Data is not weighted, but quotas and other parameters are put in place to reach the desired sample.

Interviews are excluded from the final analysis if they failed quality-checking measures. This includes:

• Speeders: Respondents who complete the survey in a time that is quicker than one-third of the median length of interview are disqualified as speeders
• Open ends: All verbatim responses (full open-ended questions as well as other please specify options) are checked for inappropriate or irrelevant text
• Bots: Captcha is enabled on surveys, which allows the research team to identify and disqualify bots
• Duplicates: Survey software has “deduping” based on digital fingerprinting, which ensures nobody is allowed to take the survey more than once

It is worth noting that this survey was only available to individuals with internet access, and the results may not be generalizable to those without internet access.