Tax returns in Texas are big, on average, but they’re even bigger in three states up north, according to a new study.
Delaware, New Jersey and Connecticut beat Texas out for the largest average tax returns for tax year 2017, the latest year for which data are available, according to CardRates.com.
The average Texas tax return in 2017 was $3,949.48, according to the CardRates study. The average was just over $4,000 in Connecticut, $4,152.99 in New Jersey and $4,445.34 in Delaware.
Texas did earn one notable national distinction, based largely on the state’s population, which is second only to California. Of the more than 19 million tax returns that were filed in Texas for tax year 2017, more than 10 million got refunds. That’s more than any other state in the nation.
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New York, No. 8 in average refund size at $3,457.67, was the only other state on the Top 10 list that came close to the sheer volume of refunds issued in Texas; 7.8 million refunds were issued there, compared to more than 16 million tax returns filed.
The company went through IRS tax data for the year 2017 and contextualized it with U.S. Census Bureau population data.
Texas’ huge population (28.3 million), combined with its huge economy, resulted in “a whopping $271 billion collected in taxes from the federal government, and more than $40 billion in refunds,” the study says.
The figures in this study do not reflect the recent news that this year, the average tax return nationally is down due to a tax witholding discrepancy after the passage of 2018’s Tax Cuts and Jobs Act.