Tax refunds are the biggest pay day of the year for most Americans, but if you live in certain states or in Washington, DC, you may have to wait a little longer for that day.
President Donald Trump's signature tax and spending bill introduced a whole set of new tax breaks for middle class Americans in 2025, but some states are having a tough time implementing, or excluding, them. Software and tax forms must be updated to account for new provisions like the extra senior deduction, no tax on tips and overtime, and new auto loan interest deduction that the state has decided to follow. Meanwhile, the District of Columbia is mired in a battle with the federal government over whether it will conform at all to the new federal tax laws.
All of this means taxpayers, be warned: your state tax refunds could be delayed.
"State tax conformity will be the biggest hurdles as some states conform, some don’t conform and some only partially conform" to Trump's new tax laws, said Richard Pon, certified public accountant in San Francisco.
Taxpayers in four states plus the District of Columbia may see slower-than-usual tax refunds. Here's why:
