Ever wondered how your tax refund compares with the rest of the country? Each year, the IRS releases data showing how much Americans are getting back and how they file, pay, and contribute to the nation’s tax base. These figures reveal more than just averages — they reflect changes in income, filing behavior, and broader economic trends.
In this guide, you’ll find the latest statistics for 2025, including the average tax refund, how many returns were processed, and how income tax rates vary across different earners.
📌 Also read: Common Tax Deductions & Credits for Individuals in 2025
Overview of 2025 Tax Refunds
A tax refund is the amount the IRS returns to a taxpayer after they’ve paid more in federal income taxes throughout the year than they ultimately owe. This typically happens through paycheck withholding, estimated payments, or refundable tax credits. While some individuals plan for a refund each year, others may be surprised by how their final return compares to national figures.
Looking at the average refund amount can help put your own refund into perspective. It can also offer insight into broader taxpayer behavior, such as how much income is being withheld or how credits like the Earned Income Tax Credit (EITC) affect refund sizes.
📌 Also read: Tax Brackets & Federal Income Tax Rates 2025
What Is the Average Tax Refund in 2025?
As of May 9, 2025, the average tax refund issued by the IRS was $2,939. This figure includes all processed individual tax returns and reflects cumulative data from the start of the 2025 tax filing season.
That amount is slightly higher than in previous years, continuing a general upward trend after a dip in 2020.
Here’s how the latest average compares to earlier years:
✅ Average refund amount for 2025: $2,939
✅ Average refund for 2024: $2,869
✅ Average refund for 2023: $2,753
📝 Note: These averages are based on processed returns and do not include pending or amended filings. Refund size can vary widely depending on income, withholdings, credits, and filing status.
Year-by-Year Average Refunds (2013–2025)
The table below shows the average federal tax refund by tax year, highlighting trends across the last decade. Refunds peaked in 2015 and 2018, then dropped during the COVID-19 pandemic before recovering.
| Tax Year | Average Refund |
| 2025 | $2,939 |
| 2024 | $2,869 |
| 2023 | $2,753 |
| 2022 | $3,012 |
| 2021 | $2,880 |
| 2020 | $2,013 |
| 2019 | $2,640 |
| 2018 | $3,169 |
| 2017 | $3,137 |
| 2016 | $3,128 |
| 2015 | $3,224 |
| 2014 | $3,211 |
| 2013 | $2,944 |
📝 Note: The IRS typically updates these figures throughout the tax season. These numbers reflect averages reported near the end of each corresponding filing season.
Tax Filing Statistics (2025 Season)
Every year, the IRS publishes detailed figures on how Americans file their taxes. These data points provide a snapshot of filing habits, such as how many returns were submitted, how many were processed, and what portions were completed online or with professional help.
As of the IRS reporting week ending May 9, 2025, here’s what the tax filing landscape looked like.
Total Returns Received and Processed
The IRS handled an enormous volume of tax returns during the 2025 filing season.
✅ Individual returns received: 145,855,000
✅ Individual returns processed: 143,556,000
📝 Note: The difference between returns received and processed can reflect ongoing validations, late filings, or flagged returns pending manual review.
Total Refunds Sent and Amounts Issued
Refunds remain a key part of the tax season for many households. Based on the latest cumulative data:
✅ Total refunds issued: 93,569,000
✅ Total dollar amount refunded: $274.979 billion
These figures reflect completed refunds only. They do not include returns still under review or those with adjustments that delay disbursement.
E-Filing vs Paper Filing
E-filing remains the dominant method for submitting returns in 2025. Of all returns received, approximately 95.6% were filed electronically.
✅ Returns e-filed: 139,496,000
❌ Returns filed on paper: About 6.4 million
Digital filing has steadily increased over the past decade due to convenience, faster processing times, and fewer errors.
Self-Filing vs Professional Filing
Among e-filed returns, the split between professional tax preparers and self-filers shows continued demand for both guided and DIY approaches.
✅ Prepared by tax professionals: 74,896,000
✅ Self-prepared using software: 64,601,000
📝 Note: While self-filing tools remain popular, a significant number of taxpayers still turn to professionals, especially those with complex returns or business income.
Income Tax Brackets & Rates (2025)
The U.S. federal income tax system is based on marginal tax rates, which means your income is taxed in portions, not at a single flat rate. Knowing which tax bracket your income falls into helps you estimate your tax bill and plan your retirement contributions and deductions more effectively.
The IRS adjusts these brackets annually to account for inflation. The most recent thresholds apply to income earned in 2025.
2025 Federal Income Tax Brackets
Below are the seven tax brackets that apply to single filers in 2025:
| Taxable Income | Tax Rate |
| Not over $11,925 | 10% of taxable income |
| Over $11,925 but not over $48,475 | $1,192.50 plus 12% of the excess over $11,925 |
| Over $48,475 but not over $103,350 | $5,578.50 plus 22% of the excess over $48,475 |
| Over $103,350 but not over $197,300 | $17,651 plus 24% of the excess over $103,350 |
| Over $197,300 but not over $250,525 | $40,199 plus 32% of the excess over $197,300 |
| Over $250,525 but not over $626,350 | $57,231 plus 35% of the excess over $250,525 |
| Over $626,350 | $188,769.75 plus 37% of the excess over $626,350 |
📌 Source: IRS Revenue Procedure 2024‑40 (PDF)
📝 Note: These rates apply to taxable income after deductions. Different thresholds apply for married couples and heads of household.
How Tax Brackets Work
Many taxpayers assume that if they fall into a certain bracket — say, 24% — then their entire income is taxed at that rate. That’s not how it works.
The U.S. tax system is progressive. You only pay each rate on the portion of your income that falls within that bracket.
✏️ Hypothetical Example:
If your taxable income is $55,000,
- The first $11,925 is taxed at 10%
- The next portion up to $48,475 is taxed at 12%
- Only the income between $48,475 and $55,000 is taxed at 22%
Even if your top dollar lands in a higher bracket, your entire income is not taxed at that top rate.
Average Income Tax Rates Over Time
Tax brackets tell you your marginal rate, but your effective tax rate (or average tax rate) shows what you actually pay as a share of your income. This rate accounts for deductions, credits, and the portion of your income taxed at lower brackets.
The IRS tracks these averages across income groups to highlight how the tax burden is distributed. Here’s a closer look at the most recent data available.
Average Income Tax Rate by Income Group
IRS data from 2021 (latest percentile-based figures) shows that high earners pay a larger share of their income in taxes, but the average rate varies significantly by group.
✅ Top 1% of taxpayers
- Accounted for 45.8% of total federal income taxes
- Held 26.3% of total adjusted gross income (AGI)
- Paid an average income tax rate of approximately 25.9%
✅ Bottom 50% of taxpayers
- Paid just 3.0% of total federal income taxes
- Had an average income tax rate of 3.35%
✅ Overall average rate (all returns):
- Approximately 14.90% in 2021
- Based on IRS methodology: total income tax after credits ÷ AGI
📝 Note: These figures exclude refundable credits. They reflect final taxes owed after all deductions and nonrefundable credits.
Trends from 2010 to 2021
From 2010 through 2021, the average individual income tax rate across all returns was 13.63%, according to the IRS.
During this period:
✅ The top 1% consistently paid an average rate above 24%
✅ The bottom 50% averaged 3.36%, with minor fluctuations year to year
These rates reflect long-term tax patterns and policy changes—including shifts in bracket thresholds and credit eligibility.
📝 Note: The IRS has not released full percentile-based average rate data for 2023-2025. Updated statistics typically follow the standard Statistics of Income (SOI) publication cycle.
Who Pays the Most in Taxes?
One of the most debated topics in U.S. tax policy is who shoulders the largest share of the federal income tax burden. The IRS releases annual data showing how much different income groups pay, helping to clarify where the tax load really falls.
While top earners contribute a substantial portion of total income tax collected, average Americans often pay a higher share of their income in combined federal, state, and payroll taxes.
Share of Federal Income Taxes by Group
According to the IRS Statistics of Income (SOI) data for Tax Year 2022, here’s how the tax burden was distributed:
✅ Top 1% of taxpayers
- Paid 26.1% average individual income tax rate
- Accounted for a large share of total AGI and total income taxes paid
✅ Top 50% of taxpayers
- Paid 97.0% of all federal individual income taxes
❌ Bottom 50% of taxpayers
- Paid just 3.0% of total federal individual income taxes
📝 Note: This data only reflects federal income taxes. It excludes payroll taxes, which tend to affect lower- and middle-income earners more heavily as a percentage of wages.
Tax Burden on Billionaires vs Everyone Else
A notable data point from 2018 highlights a shift in how tax burdens can look when factoring in ultra-high-net-worth individuals.
In 2018:
- Billionaires paid an average tax rate of 23%
- The rest of the population paid an average of 28%
This figure reflects broader definitions of “taxes” beyond just federal income tax. It may include capital gains, payroll taxes, and other levies. The 23% figure has been cited in discussions around tax equity and proposals for wealth taxes.
📝 Note: This comparison is based on estimates compiled from federal data and external analysis. Figures for recent years have not been updated or confirmed by the IRS in the same format.
Additional Federal Tax Insights
Beyond personal tax refunds and brackets, it’s helpful to look at broader federal tax trends. These insights reveal how much individuals pay on average, where tax revenue comes from, and how it’s divided between individuals and corporations.
Average Income Tax Paid
The most recent IRS-reported average shows that in 2022, the average federal income tax among taxable returns was $19,722.
📝 Note: This figure is based on all filed individual tax returns and includes all income groups. Newer year-specific averages are not yet available in finalized IRS SOI tables.
Federal vs State & Local Tax Breakdown
In 2019, Americans paid a combined $5.3 trillion in total taxes, split across different levels of government:
✅ Federal tax revenue: $3.5 trillion
✅ State and local tax revenue: $1.9 trillion
These amounts cover all tax types collected by various government agencies. This includes individual income taxes, corporate taxes, payroll taxes, and excise taxes.
📝 Note: While federal taxes dominate total revenue, state and local taxes (such as sales and property taxes) play a significant role in funding schools, transportation, and municipal services.
Individuals vs Corporations
A large share of total federal tax revenue comes from individuals rather than businesses.
✅ Individual taxpayers contributed 50% of all federal tax revenue
❌ Corporations contributed only 4%
This highlights the disproportionate role individual income taxes play in funding the federal government compared to corporate taxes.
📝 Note: These figures reflect gross revenue collected by the IRS and do not include net effective rates or credits that may reduce a corporation’s final tax liability.
📌 Also read: Common Tax Deductions & Credits For Individuals (2025)
Conclusion
Tax data from 2025 paints a clear picture of how Americans earn, file, and contribute. The average refund remains steady, and nearly all taxpayers now file electronically, whether through software or with help from a professional.
These numbers remind us that the federal tax system is designed to be progressive, meaning higher earners pay more overall while most households see consistent effective tax rates year to year. Understanding where you fall within those averages can help you plan better for next season, whether it’s adjusting withholdings, setting aside savings, or timing deductions.
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