The States with the Most Tax Procrastinators (and other tax facts)

Are you one of those people who wait until the last minute to file your taxes? Ever wonder if you are in good company? Keep reading to find out if you live in one of the states with the most tax procrastinators!

In this post, you'll learn which states have the most people that tend to wait until the last minute to submit their tax returns, a little bit about why you might be avoiding filing your taxes, and how to stop waiting until the last minute to file (if you currently do).

Which States Have the Most Tax Procrastinators?

IPX1031 put together a report on the states with people that procrastinate the most on their taxes based on Google searches in each state. Based on their findings, the top five states with the most tax procrastinators in 2022 include:

1. Nevada
2. Hawaii
3. Georgia
4. Alaska
5. California

This didn’t change much from 2021, with all but Georgia making the top 5 last year as well. However, Nevada did make a big jump from being the fourth-highest in 2021 to taking the crown in 2022.

Which States Procrastinate the Least?

Using the same data, we can also determine which states' residents tend to procrastinate the least. In 2022, the top 5 states that procrastinated the least when it came to filing their taxes include:

• Iowa
• Wisconsin
• Michigan
• West Virginia 
• South Dakota

Iowa, Michigan, and Wisconsin all made the top 5 in 2021, while West Virginia and South Dakota were replaced by Ohio and Pennsylvania.

Source: ipx1031.com

Which City Has the Most Tax Procrastinators?

Based on the states listed above, you might be surprised to find out which cities out of the 30 most populous cities in the United States have the biggest tax procrastinators. The top 5 include:

1. Las Vegas
2. Denver
3. Baltimore
4. Seattle
5. Portland

While Las Vegas resides in the biggest tax-procrastinating state, neither of the other four cities is in the top 5 states.

Does Refund Size Decrease Tax Filing Procrastination?

One thing that could be a factor in determining how quickly a state's residents file their taxes is the incentive to file. While it’s never a good thing to get a large tax refund, it’s interesting to consider if those state's residents who anticipate a larger refund are more eager to file their taxes.

While we don’t have the average federal refund per state for 2022 yet, we can look at the 2020 data to see if there is a relationship between the average federal refund issued per return and the state’s procrastination ranking. 

In 2020, the states with the highest average federal tax refund were:

In comparison, the states with the top 5 lowest average refunds included:

The average procrastination ranking of the 5 states with the largest average refund in 2020 was 27.2, with an average refund of $2,471.40, and those with the smallest average refund had an average procrastination ranking of 20.4, with an average refund of $1,892.20. Therefore, based on this data, it seems that states with a lower average refund procrastinated less than the states with a higher average refund. 

Source: https://www.gobankingrates.com/taxes/refunds/average-tax-refund/

Why Do People Procrastinate When Filing Taxes?

Based on the date that we’ve looked at in this article, it isn’t clear if the anticipated value of the refund is a motivator for filing taxes earlier. However, a 2019 study out of UT Southwestern, seems to validate the thought that on an individual level, an anticipated refund plays a big role when it comes to procrastination and filing taxes.

The study found that most people time filing their taxes based on the amount of cash they have on hand and the anticipated refund or payment. Those with higher incomes expecting to owe taxes file later, while those with lower incomes expecting a big refund file as early as possible. So while this may not necessarily be reflected on a state level, the outcome of your tax return seems to greatly impact procrastination on a personal level. 

The study also found that there may be several other reasons for individuals procrastinating in filing their taxes, including:

• Not wanting to face negative turns in stocks
• Not wanting to assess their personal finances
• Not wanting to “pay the government”
• Avoiding distressing personal issues like divorce or the loss of a loved one

What To Do If You Are a Tax Filing Procrastinator

If you are one of those people who wait until the last minute to file your taxes, don’t rush your return! Instead, file a tax extension for free with FileSmart. After that, sign up for a FileSmart membership to learn tips and tricks about how to save money when you do file your taxes from tax professionals and online courses.