Sixty-one percent of the taxpayers polled said their refund played a key role in budgeting for 2025, up from 52% who said the same about last year.
Tax Refunds Central to 2025 Financial Planning
A new survey of 2,000 U.S. taxpayers, conducted in two phases, December 2024 and post-Tax Day 2025, reveals the growing importance of tax refunds in Americans’ yearly financial planning. Just over three in five (61%) respondents said their refund was a critical part of their 2025 budget. That’s a notable increase from just over half (52%) who relied on their refund the previous year.
Most Refunds Already Allocated to Essentials
Nearly two-thirds (64%) of taxpayers have already spent or plan to spend their refunds, with the majority using the funds to cover essential living expenses. Specifically, 58% are putting the money toward rent or housing costs, 48% toward groceries, 29% toward paying down credit card debt, and 13% toward home repairs. For many households, these refunds are functioning less as windfalls and more as vital support for everyday costs.
Refund Planning Reflects a Shift Toward Necessities
Among those who haven’t yet spent their refunds, most are exercising caution. Nearly three-quarters (72%) say they intend to use their refund solely on necessities. Interestingly, while only 22% of respondents in December expected a larger refund than last year, 32% ultimately received more, providing a welcome boost to strained budgets.
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Study: 4 in 5 Americans Spent Tax Refunds on Essentials
Research publisher
TaxSlayer is an easy-to-use online tax filing platform with unlimited support at a fraction of the cost of the competition. Trusted for 60 years, the Augusta-based tech company successfully completed more than 11 million federal and state e-filed tax returns in 2024 and processed over $22 billion in refunds. With over 29,000 reviews on consumer review site Trustpilot, 82% of customers rate TaxSlayer Great or Excellent. On top of ensuring 100% accuracy, TaxSlayer has a maximum refund guarantee and is committed to providing the right tools at the right price.
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.
