With tax season upon us, many Americans are anxious to know what it will mean for their tax payments — and refunds. The good news is that the average tax refunds have been increasing over the past few years, and according to the IRS, that trend is still continuing as of the latest data. This means, there’s the potential for even more surprise money to hit your pocket this tax season.
Tax returns vary state to state and person to person, but past data and future estimates can still give taxpayers a sense of what they’ll be forking over to the IRS — or getting back as a return — come April. As the data shows, the average refund as of late February is $3,213 — up 4.3% from last year.
Some states also typically have higher averages than other. With data put together from LendingTree for the tax year 2021, residents of Wyoming, Massachusetts, Florida and Washington, D.C., received the largest average refund, at over $5,000. On the flip side, for the same tax year, residents of Maine, West Virginia and Vermont received the smallest average refunds — with numbers in the low $3,000s. While the exact averages for this year will be slightly different, the highest and lowest states usually stay pretty similar.
Each individual will spend their tax refund differently, and some will even use it to pay off their debt or put into savings. But, if you were hoping to put your refund towards travel, we have some great options for you. And really, what better way to celebrate spring (and the end of tax season) than with a trip paid for in full with a tax refund?
Despite the refund amount, you might be pleasantly surprised to see how far it can take you. There are also many sites you can use, such as Going.com and Skyscanner.com, to figure out last-minute vacation deals.
$3,000 to $3,200
With a more modest tax refund, visitors can still plan an awesome trip, either domestically or abroad. The lowest tax refund is, typically, in Maine, where the average taxpayer saw a refund of $3,144 (based on tax year 2021). With that money, a solo traveler could travel to Cartagena, Colombia. We found nonstop flights from New York City for $669 in May or, if you’re willing to have a layover, flights as low as $363.
You could also enjoy Dublin this spring for just $607 round-trip. With close to $2,500 remaining, that could go a long way for accommodations, food and entertainment.
Related: JetBlue plots ‘opportunistic’ growth in Europe as carrier inaugurates new Dublin routes
Of course, the budget won’t go as far for couples, but we were able to find flights to Reykjavik on low-cost carrier PLAY for as low as $387 round-trip. This means a couple can fly across the pond for less than $800 round-trip and enjoy a multi-day trip exploring Iceland. While Iceland isn’t necessarily the cheapest destination, there are many points-friendly properties in the city.
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If you’re looking for somewhere to take the entire family, you can spend a week in Sedona, Arizona, hiking the red rocks or choose to lounge on the beach in Florida’s Key West — as we found round-trip flights around $200 to $300 from many East Coast airports.
Related: 4 family-friendly road trips you can take through Arizona
$3,250 to $3,450
Taxpayers who fall into this band — which is currently the average person as of February — can escape still-chilly temperatures with trips to sunny and beautiful destinations across the U.S.
For a lower-budget trip, you can fly nonstop from Burlington, Vermont, to Orlando for as low as $151 round-trip on Breeze Airways. A visit to Orlando absolutely doesn’t have to include visiting the mouse, as both Disney World and Universal offer many attractions that don’t require a park ticket. You’ll find many fun and entertaining hotels — at inexpensive rates — throughout the area.
Related: Splash into fun — The 14 best hotel pools in Orlando
For international vacations, we found flights from Boston to Frankfurt for just $437 round-trip per person. You could also take a quick flight to the island of Aruba from Washington, D.C., for just $396. Entire families can enjoy a trip here by using points to reserve a stay at one of the island’s many great points properties.
$3,550 to $4,550
If you’re able to snag a refund higher than the current average, this could potentially allow you to spend some portion on travel and save the rest.
For residents of Nevada, Alaska, or any other western states, the San Juan Islands off the coast of Washington are a short flight and boat ride away. The idyllic archipelago is filled with state parks and greenery, making it the perfect option for nature lovers who want to hike, kayak, swim or watch for orcas starting in May. Flights originating from the west can be as low as $90 per person (from what we saw from Las Vegas to Seattle on Frontier Airlines), and hotels on the islands usually cost from $115 to $285 per night in late May.
Related: Earn points, miles and cash back while doing your taxes
For international locations, residents of the West Coast can fly to parts of South America in just a few hours. Flights from California to Bogota, Colombia, are typically between $300 and $400 in May.
East Coast residents can turn to St. Martin for a great getaway as flights cost around $300 on Delta. Or, take a nonstop flight to Paris for about $500 from New York on airlines such as French Bee, Air Caraibes or Norse Atlantic Airways. Travelers can splurge at one of the best hotels in Paris, such as the Ritz Paris or Park Hyatt Paris-Vendome. Or, cash in your hotel points for an award night, and you’ll have plenty of refund money left over to experience some incredible French dining.
$4,800 to $6,000
If you happen to live in one of the highest refund states — which typically includes Connecticut, Nevada, New York, Florida, Massachusetts, Washington, D.C., and Wyoming — you could embark on the vacation of a lifetime.
Southeast Asia can be extremely inexpensive, allowing your refund to go quite far. While your flight will eat up the bulk of your refund — we found flights to Bali starting at $1,500 per person — hotels, experiences and dining are extremely inexpensive. So, even though flights might cost north of $3,000 if you’re traveling as a couple, you can easily stay for 10 days with just $1,800 to $3,000 in your back pocket.
For example, we found rates at the Aloft Bali, Seminyak for less than $100 per night (and you’ll be within walking distance of the beach). You can then enjoy the spectacular scenery in and around Ubud for just $125 per night at the Sthala, a Tribute Portfolio Hotel (another Marriott property).
Related: Bali on a budget: Booking 6 nights in luxury hotels for just 36,000 points
If you’re looking for something completely different, North African temperatures tend to be relatively mild in the spring, making it a great time to visit Morocco. Flights to Africa tend to run on the more expensive side, regardless of the time of year. However, flights to Casablanca are actually quite reasonable and can be found between $500 and $900 round-trip — depending on whether you want a nonstop flight or one with a layover. Visitors can rent entire homes near Casablanca with Airbnb for slightly over $100 per night, and many even include their own pools.
Bottom line
Although your tax refund is technically excess taxes you’ve paid throughout the year — or have had withheld from your paycheck — it can often feel like free money. There’s no better way to travel than with unexpected money that just landed on your lap.
With my travel options, you can put this tax refund to good use and truly experience a fun vacation.
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