A recent survey of 2,000 taxpayers, commissioned by TaxSlayer and conducted by Talker Research, shed light on the tax filing habits of Americans – including when they filed, how much they received as a tax refund, whether that amount changed since last year, and how they spent or planned to spend that money.
Nearly two in three (64%) of the taxpayers surveyed have either already spent their tax refund money or are planning to soon, and most are prioritizing spending their tax refunds on necessities.
Here’s a closer look at what we learned.
Most Americans spent their tax refunds on necessities
Tax season has just wrapped up, and already, most of the taxpayers we surveyed had either spent their tax refund or knew how they will spend it.
4 in 5 people
who spent their refunds said they used the money for necessities like bills, groceries, credit card debt, and home repairs, or they put it into savings
Seventy-two percent of those who haven’t already spent their refunds are planning to use the money for necessities.
Only 15% said they would spend theirs on luxuries – things like entertainment, dining out, new phones, clothes, and niche hobbies.
Those who were not planning to spend their refunds on essentials before filing say they changed their minds due to factors like unexpected expenses, shifting priorities, and financial uncertainty:
“I realized there were more practical priorities—like paying down some debt and building up my emergency savings—so I shifted gears. It felt smarter to set myself up for stability instead of splurging right away,” said one survey respondent.
Another said, “I changed my tax refund spending plans because my financial priorities shifted. I realized I needed to focus more on essentials like bills, savings, or paying off debt instead of spending on non-necessities. Making more responsible choices now can help me feel more secure in the long run.”
Some were cautious about the future: “I changed spending my refund on luxuries and decided to spend [it] on necessities and debt payback because I am nervous about [the] economy,” said one taxpayer. “I am putting it into my savings account because inflation has me concerned about money,” said another.
Actual refunds were higher than expected
In our initial study conducted last December, participants – who had not filed yet – said they were only expecting to receive around $1,700 on average. This latest survey shows that participants actually received over $2,300 on average.
62% of those surveyed said they were happy and surprised by the amount they received. In contrast, only 40% recalled feeling happy with their 2024 tax refund. According to IRS records, the average federal refund was $3,453 as of Feb. 21, 2025.
About a third said they received more money this year compared to last year, while roughly 40% received the same amount, and about 28% said they received less. Those who received a bigger refund attributed it to working more this year, adjusting their deductions, getting pay raises, adding dependents, and retirement.
Those who received a smaller refund believe it was due to losing a job, moving to a higher tax bracket, claiming fewer dependents, capital gains, and/or retirement.
Why respondents believe they received a bigger refund this year:
Worked more (37%)
Adjusted withholdings (31%)
Got a raise (16%)
Added a dependent (13%)
Retired (7%)
Americans filed early or on time
As always, getting your taxes done early means you have more time to plan and, likely, a clearer financial picture for the year ahead – and roughly 41% of those surveyed filed early this tax season. The majority (57%) filed on time, and only a small percentage filed late or requested an extension.
A few factors motivated the early filers: they wanted to receive their refunds sooner or avoid the pressure of tax season, or simply because it’s what they did last year.
Respondents say they will also likely file early next year because it means getting their refund earlier and avoiding the stress of tax season.
Methodology
Talker Research conducted an online survey of 2,000 American taxpayers who received tax refunds, commissioned by TaxSlayer, between Dec. 13-20, 2024, and Apr. 10-27, 2025. The survey used non-probability sampling from traditional online access panels and programmatic sources, where respondents opted in for incentives. Dynamic online sampling adjusted targeting to meet quotas, and respondents were awarded points with cash-equivalent value for completing the survey.
Data analysis included only cells with at least 80 respondents, ensuring statistical significance at the 95% level, without weighting but with specific quotas. Quality checks excluded speeders, inappropriate open-ended responses, bots, and duplicates, noting that results may not generalize to those without internet access.
