March 4, 2026Updated March 5, 2026, 4:25 p.m. ET
Tax refunds are the largest pay day of the yr for many Americans, however when you stay in sure states or in Washington, DC, you could have to attend just a little longer for that day.
President Donald Trump‘s signature tax and spending bill launched a complete set of latest tax breaks for center class Americans in 2025, however some states are having a troublesome time implementing, or excluding, them. Software and tax kinds should be up to date to account for brand new provisions like the additional senior deduction, no tax on tips and overtime, and new auto loan interest deduction that the state has determined to comply with. Meanwhile, the District of Columbia is mired in a battle with the federal authorities over whether or not it’s going to conform in any respect to the brand new federal tax legal guidelines.
All of this implies taxpayers, be warned: your state tax refunds may very well 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 legal guidelines, mentioned Richard Pon, licensed public accountant in San Francisco.
Which states are warning of tax refund delays?
Taxpayers in 4 states plus the District of Columbia might even see slower-than-usual tax refunds. Here’s why:
- Idaho: In a memo, Lori Wolff, administrator within the state’s Division of Financial Management, warned finances cuts decreased the short-term tax‑season workforce, which might gradual tax processing by 12-24 weeks and delay taxpayer refunds by as much as 6 weeks. The delays would value taxpayers as much as $7 million in elevated refund‑curiosity funds, she mentioned.
Further, Idaho Gov. Brad Little did not signal the state’s invoice to evolve to the federal tax legal guidelines till Feb. 11, after the beginning of the IRS’ Jan. 26 tax season and greater than 158,000 Idahoans had already filed their taxes.
“The changes to forms and systems normally take nine months for the Tax Commission to complete,” mentioned Tax Commission Chairman Jeff McCray in a release on Feb. 17. “However, it’s a priority for us to make the updates and provide a plan for taxpayers to follow as soon as possible.”
- New York: An Intuit TurboTax software program difficulty, which was presupposed to be fastened on Feb. 4, could have prevented submitting and delayed some tax refunds, in keeping with customer complaints on various message boards and local news stories.
- Oregon: Taxpayers submitting paper returns will not even start being processed till at the very least the top of this month, the state’s Department of Revenue said. The first refunds will not be issued till early April, it mentioned. The IRS was late offering needed tax kinds and data for the state to program its laptop programs, the division mentioned.
The Oregon Department of Revenue additionally said a “small number of taxpayers” claimed an incorrect quantity for the Oregon Kids Credit due to a kind error. Although it mentioned the invention was made early sufficient that refunds should not be delayed, it warned it will regulate, if needed, the returns of these those that claimed the Oregon Kids Credit and a number of of the brand new federal deductions for extra time wages, suggestions and new automobile mortgage curiosity.
- South Carolina: The Palmetto State’s warning on its Department of Revenue website says tax processing is taking longer than ordinary as a result of it isn’t conforming to Trump’s new federal tax legal guidelines. Taxpayers should be additional cautious and regulate their state tax filings to add back income which will have been deducted on the federal stage. Those could also be suggestions, extra time, further senior deduction and auto mortgage curiosity, amongst others, it mentioned. If they’re missed, taxpayers could must file an amended return, which may delay a refund.
- Washington, DC: The District of Columbia is embroiled in a battle with the federal authorities that has thrown tax submitting into chaos. The district voted late final yr to not conform to the brand new tax legal guidelines, however Congress voted to reverse that call in the midst of tax season. Trump signed it into regulation on Feb. 18. “Electronic and paper versions of the 2025 district income tax forms will be delayed,” the Office of Tax and Revenue said on its web site.
The DC Attorney General filed an opinion arguing that Congress’ reversal is not legitimate as a result of the deadline had handed to make such a transfer, amongst different issues. If the dispute does not get resolved quickly, DC Chief Financial Officer Glenn Lee mentioned tax submitting deadlines may very well be pushed to September and disrupt $400 million in money stream for DC authorities.
Which means the dispute will get settled might have a big effect on DC taxpayers. About 60,000 people who’ve already filed their DC taxes could find yourself having to refile, the National Taxpayers Union Foundation mentioned.
Plus, almost 90% of taxpayers take the usual deduction, which is both $15,750 if Congress is correct, or $15,000 if DC wins, it mentioned. The native baby tax credit score is both $0 if Congress is right or $420 per baby if DC will get its means, mentioned the nonpartisan analysis and academic group.
Medora Lee is a cash, markets, and private finance reporter at USA TODAY. You can attain her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for private finance suggestions and enterprise information each Monday by way of Friday.
