Which US states are sending tax refunds before 2025 ends? How much will you get? Eligibility and more

In December 2025, while federal tax refunds are on pause, several states are issuing payments related to overpaid income taxes or legislative initiatives.

Published on: Dec 22, 2025, 04:41:12 IST

By Prakriti Deb

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As the year draws to a close, many taxpayers check their accounts, hoping for a final tax-related payment before January. While federal tax refunds follow a strict seasonal schedule, several states are still issuing payments in December 2025, according to Marca.

State tax systems operate independently, giving them more flexibility in issuing refunds and relief payments. (Pexel)

At the federal level, income tax refunds are handled exclusively by the Internal Revenue Service (IRS). These refunds are simply returns of overpaid taxes, typically through payroll withholding or estimated quarterly payments.

However, the IRS does not issue refunds continuously throughout the year.

Tax filing season generally begins in late January and runs through mid-April, sometimes extending into May. As a result, December 2025 falls completely outside the federal refund window, and the agency has not announced any new stimulus or special payments for this month.

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Any federal payment received in December is usually tied to exceptional circumstances, such as delayed amended returns or corrections from prior years. Such cases are individual and rare, not part of any widespread distribution.

State refunds follow different rhythm

State tax systems operate independently, giving them more flexibility in issuing refunds and relief payments. Some December payments come from overpaid state income taxes, while others are connected to legislation authorizing surplus rebates, inflation relief checks, property tax credits, or housing and energy assistance, Marca reported.

Because these programs are linked to state budgets rather than the federal calendar, states can issue payments whenever they choose. December often sees final distributions from earlier-approved programs, rather than entirely new initiatives.

States issuing refunds in December 2025

According to reports from state agencies and local news outlets cited by Marca, several states are actively distributing payments this month. These include:

Alaska: remaining Permanent Fund Dividend payments
Colorado: TABOR refunds tied to revenue surpluses
California, Georgia, Minnesota, New Jersey, New York, Pennsylvania, Virginia: ongoing payments connected to earlier relief or surplus programs

Taxpayers in these states may see deposits hitting their accounts before the end of the year, even though federal refunds remain on hold until the 2026 filing season.

ABOUT THE AUTHOR
Prakriti Deb
Prakriti Deb is a journalist at Hindustan Times Digital, where she is part of the US Desk. She works on stories related to American politics, crime, sports, entertainment and weather. She particularly enjoys covering political developments that have global ripples. Through her work, she aims to break down complex events in a way that feels simple and understandable. Before joining the Hindustan Times, she worked with The Indian Express Digital, where she covered world affairs. She holds a postgraduate degree in Mass Communication with a specialisation in Journalism, along with a bachelor’s degree in English Literature. Outside the newsroom, Prakriti enjoys travelling and stepping out of her comfort zone. She finds her sense of being through storytelling in all its forms, including conversations, painting, theatre, dance and photography. She appreciates discussions that challenge her perspective and help her see the world a little differently.Read More

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