Louisianans receive an average refund of $3,073 after paying their income taxes in 2016, making the Bayou State third in the nation on a recent ranking of states by average refund.
Financial tech company SmartAsset analyzed 2016 IRS data to determine the total number of federal individual income tax refunds issued in each state and in Washington, D.C., as well as the total amount of money issued in all refunds.
Louisiana taxpayers received 1.65 million refunds worth $5.07 billion that year. The state is one of just three in which the average refund exceeds $3,000.
“That tax refund will also go pretty far in improving the average Louisianans’ financial situation,” SmartAsset says. “Using Census Bureau data, we estimate that the average tax refund in Louisiana could pay for one-third of a year’s worth of housing costs.”
While getting a refund may feel good for many people, SmartAsset points out that the money is technically what taxpayers have overpaid to the government.
Texas ranks No. 1, with a highest average refund of $3,133, followed by Oklahoma at No. 2 with a refund of $3,088.
Maine residents received the lowest average refund: $2,302. Northern states were more likely to receive lower income tax refunds.
