Millions of Americans are continuing to receive payments from their state governments as State Tax Refunds Still Being Issued This Winter extend into the colder months.
At least 15 states are distributing refunds or rebates tied to budget surpluses, constitutional requirements, or targeted relief programs, according to state revenue agencies and fiscal policy experts.
State Tax Refunds Still Being Issued
| Key Fact | Detail |
|---|---|
| States issuing winter payments | At least 15 |
| Typical payment range | $100 to $1,500+ |
| Funding source | Budget surpluses, statutory rules |
| Federal stimulus involved | None |
Why State Tax Refunds Are Still Being Issued This Winter
State tax refunds extending into winter months reflect a combination of fiscal strength and statutory obligations rather than emergency stimulus policy. Many states collected more revenue than forecast due to sustained employment levels, higher wages, and inflation-boosted sales tax receipts.
According to the National Association of State Budget Officers, states entered the current fiscal year with historically high reserve balances, following several years of strong revenue growth.
“These payments are not ad hoc,” said Lucy Dadayan, senior associate at the Urban-Brookings Tax Policy Center. “They are either mandated by law or result from explicit legislative decisions about how to return excess revenue.”
State Tax Refunds Still Being Issued This Winter: The 15 States Paying
The following states are continuing to issue refunds, rebates, or surplus payments this winter, based on official state guidance and reporting by major U.S. news organizations.
1. California
California continues processing payments under its Middle Class Tax Refund program, which provides up to $1,050 depending on income, filing status, and dependents. Payments are automatic for eligible taxpayers who filed qualifying returns.
2. Alaska
Alaska’s annual Permanent Fund Dividend remains one of the longest-running state payment programs in the U.S. Funded by oil and gas revenue, it provides eligible residents with payments typically exceeding $1,000.
3. Colorado
Colorado’s Taxpayer’s Bill of Rights (TABOR) requires surplus revenue to be returned to taxpayers. Refunds are distributed through tax filings or direct payments, depending on filing method.
4. Florida
Florida’s winter payments are largely tied to property tax relief and disaster-related programs rather than income tax refunds, since the state does not levy a personal income tax.
5. Georgia
Georgia continues issuing surplus tax refunds authorized by the state legislature, with payments typically ranging from $250 to $500 based on filing status.
6. Minnesota
Minnesota’s inflation relief payments, approved through legislative action, are still being distributed to qualifying residents based on income thresholds and tax filing history.
7. New Jersey
New Jersey’s ANCHOR property tax relief program continues issuing checks to homeowners and renters, with amounts varying based on income, residency, and property ownership.
8. New York
New York residents may still receive payments through school tax relief credits and property tax rebate programs tied to local tax burdens.
9. Oregon
Oregon’s constitutionally mandated “kicker” returns surplus revenue when collections exceed forecasts. Refunds are issued as credits or direct payments.
10. Virginia
Virginia continues distributing one-time rebates approved by lawmakers, typically sent automatically to eligible filers.
Remaining States Continuing Winter Payments
11. Illinois
Illinois continues targeted family relief payments aimed at lower- and middle-income households, based on filing status and dependents.
12. Maine
Maine’s homeowner and property-related relief programs remain active, with refunds tied to residency and tax filings.
13. Massachusetts
Massachusetts is still issuing excess revenue refunds under Chapter 62F, which requires surplus funds to be returned proportionally to taxpayers.
14. Michigan
Michigan’s expanded Working Families Tax Credit continues sending payments to eligible filers, particularly households with children.
15. Indiana
Indiana has issued remaining one-time rebates linked to surplus revenue and compliance with state tax filing requirements.
Historical Context: Why These Refunds Are Becoming More Common
Over the past decade, state refunds tied to surpluses have become more frequent, particularly after economic expansions. During periods of strong growth, revenue forecasts often lag actual collections, creating excess funds.
Between 2021 and 2024, states benefited from federal pandemic aid that reduced pressure on state budgets while tax receipts rebounded quickly. That combination allowed many states to accumulate reserves and issue refunds.
“These programs reflect how conservative forecasting and unexpected growth interact,” said Josh Goodman, senior fiscal analyst at the Pew Research Center.
How These Payments Differ From Federal Tax Refunds
State tax refunds should not be confused with federal income tax refunds or stimulus checks. Federal refunds are issued after annual tax filing and reflect overpayment of federal taxes.
By contrast, state refunds and rebates may be based on surplus revenue, statutory formulas, or policy decisions unrelated to individual overpayment.
The Internal Revenue Service (IRS) has confirmed that there are no federal stimulus payments scheduled this winter.
Eligibility Rules: Why Not Everyone Receives a Payment
Eligibility criteria vary significantly by state. Common requirements include:
• Filing a state tax return for a specific year
• Meeting income or residency thresholds
• Having a positive tax liability
• Owning or renting property in the state
Some programs exclude higher-income households, while others apply broadly to most filers.
Offsets, Garnishments, and Reduced Payments
In many states, refunds may be reduced or intercepted if a taxpayer owes certain debts. These can include:
• Unpaid state or federal taxes
• Child support arrears
• Court-ordered obligations
• State agency debts
State revenue departments typically apply these offsets automatically before issuing payments.
How State Tax Refunds Are Delivered
Most states issue refunds automatically using information already on file. Delivery methods include:
• Direct deposit
• Paper checks
• Credits applied to future tax returns
States advise residents to update banking and address information through official portals to avoid delays.
Timing Delays and Administrative Backlogs
Not all eligible residents receive refunds at the same time. Delays can occur due to:
• Late or amended tax filings
• Identity verification reviews
• Incorrect banking information
• High processing volume
Officials emphasize that staggered payments are normal and do not indicate denial.
Are State Tax Refunds Taxable?
According to IRS guidance, most state refunds are not federally taxable for taxpayers who took the standard deduction. However, those who itemized deductions may need to report part of the refund as income. Tax professionals recommend reviewing individual circumstances carefully.
Equity and Distributional Concerns
Some policy analysts argue that surplus refunds disproportionately benefit higher-income taxpayers who paid more in taxes, while others note that targeted programs help lower-income households.
“There is an ongoing debate about whether refunds or expanded services provide better long-term benefits,” said Tracy Gordon, a senior fellow at the Urban Institute.
What to Do If You Believe You Were Wrongly Excluded
Taxpayers who believe they qualify but did not receive a payment can typically:
• Check state refund tracking tools
• Review eligibility criteria
• Contact state revenue departments
• File amended returns if necessary
Most states provide online resources and customer service channels for appeals or inquiries.
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Looking Ahead: Will These Refunds Continue in 2026?
Budget experts caution that surplus-driven refunds depend on economic conditions. Slower growth, declining tax receipts, or increased spending could reduce or eliminate future payments. “These refunds are not guaranteed year to year,” Dadayan said. “They reflect current conditions, not permanent policy.”
As winter continues, state governments across the U.S. are still returning money to residents through refunds and rebates. While these payments provide short-term relief, economists say their continuation will depend on economic performance, revenue trends, and policy choices in the coming fiscal year.
FAQs About State Tax Refunds
Are these federal stimulus checks?
No. These are state-issued refunds or rebates.
Do I need to apply?
Most programs are automatic, though some require filings.
Can my refund be reduced?
Yes. Outstanding debts may reduce payments.
Will these payments continue next year?
That depends on state revenue and legislation.
