How's Your Tax Refund?
When it Comes to Tax Refunds, Marylanders are Average
The average Marylander gets $3,242 back from the government as a tax refund, slightly less than the $3,288 national average. People hope for tax refunds to pay down debt, boost savings, or catch up on bills. Big ticket items go on sale during tax time to take advantage of consumer windfalls.
A new report from Upgraded Points examines average tax refund amounts by county and state, analyzing the latest IRS data to show how refunds have changed in recent years, how they vary by income level and geography, and who’s most—and least—likely to get money back.
Over the past 15 years, the average federal tax refund has generally remained in the range of $2,800 to $3,000, but the COVID-19 pandemic disrupted that pattern. During the 2020 filing season, the average refund dropped to $2,549, reflecting widespread job losses and reduced earnings early in the crisis.
Tax refunds vary significantly by income level, with higher-income households receiving larger refunds on average — but a smaller share of these households receive refunds at all. According to the latest IRS data, filers earning less than $50,000 received an average refund of $2,403, with over 77% of total returns in this group receiving refunds. Refund participation was nearly universal among the lowest-income group, with 99.3% of those eligible choosing to receive a refund rather than applying their overpayment to next year’s taxes. Who does that?
For middle-income filers earning $50,000 to $100,000, the average refund rose to $2,789, though just 68.3% received one. Refunds increased further to $4,188 for those earning $100,000 to $200,000, but only 55.4% of these returns resulted in a refund.
At incomes above $200,000, the average refund surged to $15,350. Yet just 35% of returns received a refund, and nearly one-third of filers with overpayments opted to apply their credit to the following year’s taxes instead. Now we know who.
Key Findings, With Data for Maryland
Most Americans receive refunds: Roughly three-quarters of all tax filers receive refunds, averaging nearly $3,300 annually.
Paper check vs. direct deposit: About 10% of taxpayers don’t use direct deposit, with paper check use highest in rural areas and in pockets of the northern U.S.
Tax refunds in Maryland: The average tax refund for Maryland residents is $3,242, with 90.0% of refunds being issued via direct deposit.
However, refund amounts vary by income: In Maryland, a household earning less than $50K receives an average refund of $2,294, while those earning $200K or more receive $11,407 on average.
