MURFREESBORO, Tenn. (WGNS NEWS) - A new national analysis of federal tax refund data shows Tennessee landing squarely in the middle of the pack when it comes to average refund size, while ranking among the top states for the percentage of residents receiving money back.

According to the study, Tennessee ranks 22nd in the nation for average federal tax refund during the 2024 filing year, with taxpayers receiving an average of $2,986.09 per filer. That figure falls just below the national average of $3,042.69. 

Despite the slightly lower-than-average refund size, Tennessee stands out in another key category: refund rate. Approximately 75.7% of filers in the Volunteer State received a refund, placing Tennessee 8th-highest in the country and above the national rate of 73.2%. 

In total, more than 2.45 million Tennesseans received refunds, with $7.33 billion returned to households statewide, accounting for just over 2% of all federal refund dollars issued nationwide. 

The data highlights a contrast in Tennessee’s tax landscape: while refund amounts trail slightly behind the national benchmark, a higher share of residents are receiving refunds overall. Analysts note this dynamic may be influenced in part by Tennessee’s status as one of the few states without a broad state income tax.

Compared to neighboring states, Tennessee ranks fifth out of nine in average refund size, trailing Georgia, Mississippi, Alabama, and Virginia, but outperforming Arkansas, North Carolina, Missouri, and Kentucky. 

When measured by refund rate among those same neighboring states, Tennessee performs more strongly, ranking third, behind only Mississippi and Kentucky. 

Among states without a state income tax, Tennessee ranks seventh out of nine in average refund size but climbs to third in refund rate, again reinforcing the trend of broader participation despite slightly smaller refund amounts. 

Researchers say federal tax refunds continue to play a significant role in household finances, with many families relying on the annual return as one of their largest single payments of the year.

“Behind every one of those refund checks is a household that effectively overpaid throughout the year,” the report notes, emphasizing the importance of planning how refunds are used. 

The findings are based on Internal Revenue Service data analyzing the number of returns filed, refunds issued, and total refund dollars distributed across all 50 states for the 2024 filing year. 

The study and data were submitted by Ladah Injury & Car Accident Lawyers Las Vegas.