2026 Tax Refund Delays: 5 States Where Your Money Is Stuck

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From New York to Oregon, your state income tax refund could be delayed for weeks. Here's what to know. When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works. Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.You are now subscribedYour newsletter sign-up was successfulWant to add more newsletters?Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. 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While the IRS reports an average federal tax refund of $2,548 (so far), state-level checks are moving at a snail's pace in several parts of the country. For many households, these delayed funds are needed to cover essentials like groceries, rent, and other bills.Why the delays? Well, some state software and forms have to be updated to accommodate (or exclude) the new, temporary tax breaks introduced by the 2025 Trump tax and spending bill.For example, in South Carolina, taxpayers are being forced into a manual "add-back" process, while Washington, D.C. residents are navigating a historic mid-season policy overturn that has left 42,000 early filers in limbo.Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special IssuesProfit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.Profit and prosper with the best of expert advice - straight to your e-mail.Between these complex tax shifts, agency staffing cuts, and software glitches, your state refund could be weeks away.Read on to see if your state is on the "slow list" and how to navigate the 2026 income return backlog.Idaho 2026 tax refunds could be delayed by up to six weeks, according to a February memo from Lori Wolff, state budget director, to Idaho's Joint Finance-Appropriations Committee. And wait times could stretch even longer.Key reasons for 2026 Idaho refund delays:For the 158,000 Idahoans who have already filed a state return, the Idaho Tax Commission will provide "more guidance over the next few weeks" for how these taxpayers might take advantage of the new tax breaks on their state returns.In the meantime, taxpayers who are concerned about the tax due date and the timing of the new law changes can apply for an automatic filing extension. To qualify, a taxpayer must pay 80% of the 2025 estimated tax, or 100% of the total tax reported on last year's return, by April 15, 2026.New York taxpayers who filed early in the season may be experiencing tax refund delays due to tax software issues.Key reasons for 2026 New York refund delays:Note: Third-party tax software updates reportedly went into effect in early February 2026. But affected New York income returns may still be stuck in a "processing" phase. If so, taxpayers should ensure software is fully updated to the latest 2026 version before filing.Oregon taxpayers who file paper returns won't have their state income return processed until late March this year, as the first paper-filed refunds are not expected to be issued until early April 2026.Key reasons for 2026 Oregon refund delays:The state DOR is strongly advising those who still file by mail to switch to electronic filing in 2026. E-filing may be the most effective way to bypass processing bottlenecks and accelerate the delivery of Oregon "tax kicker" refunds.South Carolina tax refunds are expected to take longer this year, according to the state's Department of Revenue (DOR) website.Key reasons for 2026 South Carolina refund delays:Taxpayers are encouraged to review their forms for errors, including accidental usage of federal tax breaks from the recently passed Trump tax law. Additionally, avoiding paper filing and choosing direct deposit may hasten tax refund distribution.Although technically not a state, about 361,000 Washington, D.C., taxpayers will likely soon be impacted by delayed tax refunds.Key reasons for 2026 D.C. refund delays:D.C.
Chief Financial Officer Glen Lee outlined the negative consequences of the disapproval resolution in a joint letter to congressional leaders. Lee proposed that District income tax filing deadlines may be extended "into fall 2026."For more information, check out Kiplinger's report, U.S.
Congress Ends Emergency Tax Bill Over $6,000 Senior Deduction and Tip, Overtime Tax Breaks in D.C.Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.Kate is a CPA with experience in audit and technology. As a Tax Writer at Kiplinger, Kate believes that tax and finance news should meet people where they are today, across cultural, educational, and disciplinary backgrounds.
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