A state and local tax refund is money your state or city returns to you because you paid more tax than you owed
When you file your federal income tax return, you also file a return with your state (and sometimes your city or county). If you had too much tax withheld from your paychecks during the year, or if you made estimated tax payments that turned out to be larger than what you actually owed, your state or local government will refund the difference. This is separate from your federal refund — you can receive one, both, or neither depending on your situation.
State and local tax refunds work the same way federal refunds do: you file a return, the tax authority processes it, and if you overpaid, they send the money back. The timing, method of delivery, and amount vary by state. Some states process refunds in weeks; others take months. Some send checks; others use direct deposit or prepaid cards.
Key Takeaways
- A state or local tax refund is the amount you overpaid in state or city income tax during the year, returned to you after you file your return.
- You receive a state refund only if you file a state tax return, which is required in most states but not all — Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming have no state income tax.
- State refunds typically arrive within two to eight weeks of filing, though some states take longer, and the timeline depends on whether you file on paper or electronically.
- You can track your state refund status through your state's tax authority website, which usually has a tool similar to the IRS Where's My Refund tool.
- If you file your federal and state returns at the same time, your state refund may arrive before, after, or at a different time than your federal refund.
Which states issue refunds and which do not
Eight states have no state income tax at all, so there is no state refund to receive: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming. If you lived in one of these states during the tax year, you will not file a state income tax return and will not receive a state refund.
All other states have an income tax and issue refunds when you overpay. Some states also have local income taxes — cities or counties that collect their own tax on top of the state tax. If you lived in a place with local income tax, you may file a separate local return and receive a separate local refund. Ohio, Pennsylvania, Kentucky, and several cities in other states use local income tax. Check your state's tax authority website to see whether your city or county collects local income tax.
How long state and local refunds take to arrive
State refund timelines vary widely. Most states promise to issue refunds within two to eight weeks of receiving your return if you file electronically. Paper returns take longer — typically four to twelve weeks. Some states are slower: for example, California and New York sometimes take three to four months during peak filing season.
Your state refund and federal refund are processed separately, so they do not arrive at the same time. You might receive your federal refund in two weeks and your state refund in six weeks, or vice versa. If you file your federal and state returns together through tax software, both go to their respective agencies at the same time, but each processes on its own schedule.
Local income tax refunds follow the same general timeline as state refunds, though some cities process them more slowly. If you owe local tax, check your city or county tax authority website for their specific timeline.
How to track your state or local tax refund
Most states have an online refund tracker on their tax authority website, similar to the IRS Where's My Refund tool. You will need your Social Security number, filing status, and the refund amount (or an estimate of it). Search "[your state] tax refund status" or go directly to your state's Department of Revenue or Department of Taxation website.
The tracker will tell you whether your return has been received, is being processed, or has been issued. If your refund has been issued, it will usually show the date it was sent and the method — direct deposit, check, or prepaid card. If you chose direct deposit, the tracker may also show the expected arrival date in your bank account.
If your state does not have an online tracker, you can call the state tax authority's refund hotline. The phone number is on your state's tax website. Have your Social Security number, filing status, and the year you are asking about ready when you call.
Direct deposit versus check or prepaid card
Most states offer direct deposit as an option when you file your return. If you choose direct deposit, your refund goes straight to your bank account, usually within the timeline the state publishes. Direct deposit is faster and more reliable than a mailed check.
If you did not choose direct deposit when you filed, or if your state does not offer it, you will receive a check in the mail. Mailed checks take longer than direct deposits — add one to two weeks to the state's processing timeline for mail delivery. Some states also offer prepaid debit cards as a refund method; the card is mailed to you and you can use it immediately once it arrives.
If you filed your return and chose direct deposit but your refund has not arrived after the state's timeline has passed, check your bank account to make sure the deposit did not go to a different account. If you moved or changed banks since you filed, the deposit may have gone to an old account. Contact your state tax authority to confirm the account number they have on file.
What to do if your state refund is late or missing
If your state refund does not arrive within the timeline your state publishes, use the online tracker to check its status. If the tracker shows your refund was issued but you have not received it, the next step depends on the method.
For direct deposits that do not arrive: contact your bank first to confirm the deposit was not sent to a different account or held for fraud review. If your bank has no record of it, contact your state tax authority and provide the account number shown in the tracker. They can investigate whether the deposit failed and reissue the refund by check if necessary.
For checks that do not arrive within two weeks of the issue date shown in the tracker: contact your state tax authority to report it missing. They can issue a replacement check or, in some cases, reissue the refund by direct deposit if you provide banking information. Some states charge a small fee to replace a lost check; others do not.
If the tracker shows your return is still being processed after the published timeline has passed, call the state tax authority's refund line. Processing delays can happen if your return was flagged for review, if there is a discrepancy between your return and your W-2s or 1099s, or if the state is experiencing a backlog. The phone line can tell you what is holding up your refund and what you need to do next.
State refunds and amended returns
If you filed your state return and then realized you made a mistake, you can file an amended return. The process is the same as amending a federal return: you file the amended return form for your state (usually called Form 1040-X or the state equivalent), and the state processes it separately from your original return.
If your amended return results in a refund, the state will process it and send it to you using the same method as your original refund — direct deposit if you chose it, or a check if that was your method. Amended returns take longer to process than original returns, typically four to twelve weeks depending on the state. If your amended return shows you owe more tax instead of receiving a refund, you will receive a bill with instructions on how to pay.
Frequently Asked Questions
Can I get my state refund faster if I file early?
Filing early does not may provide a faster refund, but it does mean your return enters the processing queue sooner. States process returns in the order they receive them during peak season. Filing in early February rather than mid-April gives your return more time to be processed before the April 15 deadline, but the state's published timeline still applies once they receive it.
What if I moved to a different state after filing?
Your refund will be sent to the address you listed on your return. If you moved, contact your state tax authority and provide your new address. They can update their records and reissue the refund by check to your new address, or deposit it to a bank account if you provide one. Do this as soon as possible so the refund is not sent to your old address.
Do I have to file a state return if I only lived in a no-income-tax state for part of the year?
If you moved to or from a state with income tax during the tax year, you may have to file a part-year resident return in the state you left. The rules vary by state. Check the tax authority website for the state where you lived at the start of the year to see whether you owe a part-year return and whether you might be due a refund.
Can I claim my state refund on my federal return?
Yes, if you received a state refund in the current year for taxes you paid in the previous year, you may have to report it as income on your federal return. This only applies if you itemized deductions on your federal return in the previous year. Check IRS Form 1040 instructions or ask a tax preparer whether your situation requires this.
What happens to my state refund if I owe state taxes from a previous year?
Most states will offset your refund against any back taxes, penalties, or fees you owe. The state will send you a notice explaining the offset. If you believe the offset is wrong, contact your state tax authority to dispute it. Some states have a process to request a portion of your refund even if you owe back taxes.