Here’s Why Your State Tax Refund May Be Late This Year

State tax refunds may be delayed this year due to a variety of factors, including last-minute state tax law changes associated with the One Big Beautiful Bill Act, software issues, and administrative delays. These delays are separate from potential delays in federal tax refunds, which may be impacted by IRS staffing issues and the transition away from paper checks.

Idaho taxpayers have been advised by the Idaho State Tax Commission that refunds may take up to 12 weeks for early filers who submit before March 10. Those who file electronically after March 10 can expect refunds within seven to eight weeks. The delay is attributed to recent changes in state tax law alignment with federal deductions.

In South Carolina, refund processing is taking longer than usual due to non-conformity with the federal One Big Beautiful Bill Act. While the typical processing time for refunds in the state is up to eight weeks, residents may experience extended wait times this year.

Michigan’s Department of Treasury has reported an increase in early filings and delays in processing some returns. Most taxpayers can expect to receive their state refunds within four to six weeks, but those with more complex taxes may experience longer wait times.

New York experienced delays in tax refunds for some TurboTax users due to issues related to inflation refund checks issued in 2025. While the problem has been resolved, it caused delays for early filers in the state.

Oregon has issued a notice regarding processing delays for paper-filed returns, with refunds not expected to be issued until early April. Taxpayers are encouraged to file electronically and opt for direct deposit to expedite their refunds.

Generally, state tax refunds are processed within three weeks for electronic filings and up to four weeks for mailed returns. Each state has different processing timelines, so it’s important to check the state tax department’s website for specific information.

Taxpayers can track the status of their state refunds through online portals or tracker systems provided by each state. H&R Block offers a resource linking to all state refund tracking websites for easy access.

Overall, taxpayers should be prepared for potential delays in receiving state tax refunds this year and take advantage of electronic filing and direct deposit options to expedite the process.