Is “responsible tax refunds” increasing? New research has been shown Taxpayers are more likely to spend refunds on rent, groceries and other essentials rather than luxury.
A poll of 2,000 US taxpayers found that nearly two in three (64%) were already spending tax refunds or planning quickly. And I agree that everything will be spent on the purchases you need.
Consigned by Taxslayer A two-part study conducted by Talker Research compared Americans’ initial tax refund ambitions on the day before tax and their post-tax reality.
Four in five people who already spent their refunds spent it on essentials. Top spending includes bills such as rent (58%), groceries (48%) and repayment of credit card debt (29%) (13%).
Future refund spending plans also focus on essentials
Similarly, 72% who have not yet spent refunds plan to invest everything in essentials.
The survey revealed participants received an average of more than $2,300 in refunds this year. First study on this topic It was held in December 2024.
Six in 10 (61%) said reimbursements are an important part of the 2025 budget plan. An increase from 52% who felt the same way about the role they played in the 2024 budget preparation.
When asked in December, only 22% of Americans believed they would receive more than last year, while 26% believed they had fewer. When asked how much they actually received, a third (32%) said they received more than last year, but 28% reportedly were less.
The main reasons people believe they received more this year were more (37%), adjustments to deductions or withholding (31%), and getting a raise or promotion (16%).
On the other hand, participants who received a lower refund amount were thought to be due to losing their job (29%), moving to a higher tax bracket (21%) (21%), and addicts have an age of eligibility (11%).
62% were satisfied and surprised by the amount they received. Another significant increase from last year, when only 40% felt satisfied with their 2024 tax refund.
“The study confirms that people are strategic about how they generally use tax refunds,” says Seth Babb, director of consumer products at Taxslayer. “Planning ahead will help you focus on what’s essential and be intentional about spending decisions.”
The survey also revealed taxpayers’ submission habits. In December, 43% of respondents said they planned to file their taxes early, while 54% said they planned to file them on time.
In fact, 41% were submitted early and 57% were submitted on time. Only 2% of respondents said they wanted an extension.
Early filing with refund speed and reduced stress
Respondents from previous surveys shared that they were motivated to submit early because they did not have to deal with the stress of tax day and did not require filing in early 2024, meaning they would receive a refund early.
This pattern is primarily set to last for the next year. Respondents said they are likely to submit early in 2026 (47%), want to avoid stress (29%), submit earlier this year (18%), and submit a refund earlier (18%).
The majority of respondents (89%) said they submitted their taxes the same as they did last year. As an indicator, a December survey found that people most likely use DIY tax software (37%) or file manually using paper forms (19%).
However, 10% said they would do something different next year. In 2026, they said they would submit online (40%), look for CPAs (27%) and use another tax preparation software (16%).
“It’s always a good idea to submit early,” Bab emphasized. “Early taxing means planning time, more options and a clearer financial situation over the next year.”
What were the actual top essentials people spent on refunds?
Respondents were asked to select all the essentials they spent on refunds. Here’s what they said:
Essentials
- Invoices, rent and utilities, etc. – 58%
- Grocery and Essentials – 48%
- Credit Card Debt – 29%
- Home repair/improvement – 13%
- Other Expenses – 10%
- Savings account – 7%
- Childcare costs – 4%
- Paying off student debt – 3%
Research method:
The Talker survey looked at 2,000 Americans who paid taxes this year and received tax refunds of all kinds. The investigation was commissioned by Taxslayer Managed and implemented online by Talker Research between December 13th and December 20th, 2024, and April 10th to April 27th, 2025.
