Bay Area taxpayers could get a hefty federal refund
A U.S. Department of the Treasury Internal Revenue Service (IRS) 1040 Individual Income Tax form is on display. (Daniel Acker/Bloomberg via Getty Images)
SAN FRANCISCO - It's tax day once again… but if you're a taxpayer filing your return in the Bay Area, you just might get a bigger federal refund than most.
According to Internal Revenue Service data tabulated by travel and financial research company Upgraded Points, seven of the 10 California counties where residents get the highest tax refunds are in the Bay Area.
By the numbers:
Marin County leads that trend by more than $1,300, with the average federal tax refund paying $6,168.
San Mateo and Santa Clara counties claim the second and third spots on the list, with the average federal tax refund being $4,828 and $4,404 respectively.
San Francisco has the fourth-highest federal tax refund, with the average being $4,273.
Contra Costa, Alameda and Napa counties round out the bottom of the list with average federal refunds under $4,000.
In Contra Costa County, the average federal tax refund was calculated to be $3,940. In Alameda and Napa Counties, the average federal tax refunds were $3,584 and $3,524, respectively.
Big picture view:
The California state average refund of $3,344 is slightly higher than the national average refund, which was $3,300 in 2022. California is 11th among states with the highest average tax refunds, being beaten by Florida, Texas and Wyoming in the top spots on the list.
Teton County, Wyoming has the highest average tax refund in the country at $13,168. However, only about 52% of Teton County taxpayers received a refund, which is significantly lower than the national average of 64%.
What You Should Know:
The amount of money a taxpayer receives in refunds varies by income. Average refunds are larger for households with higher incomes, but high-income taxpayers are also the least likely to receive refunds.
Refunds are given to filers who have paid more in taxes than the tax code says they actually owed. Because of this, a large refund usually means that too much money was taken from a filer's paycheck in the form of taxes throughout the year.
The Source: Internal Revenue Service tax data