As of 2025, select U.S. states are issuing surplus tax refunds to eligible residents due to budget surpluses and legal mandates. While not every state offers such refunds, Georgia, Colorado, and Oregon have announced programs that could result in payments of up to $1,000, depending on your state and filing status.
In this comprehensive blog, we’ll break down which states are sending surplus refunds, how much you can expect, when payments are scheduled, and what you need to do to qualify.
What Are Surplus Tax Refunds?
Surplus tax refunds are state-issued payments that return a portion of excess state revenue to taxpayers. These typically occur when a state collects more in taxes than budgeted and is legally or politically compelled to refund the difference.
Each state’s policy differs. Some return funds directly to taxpayers (like Georgia and Colorado), while others, such as Oregon, issue credits on future tax filings. These payments are entirely separate from federal IRS tax refunds.
States Issuing Surplus Tax Refunds in 2025
1. Georgia: Up to $500 Surplus Refunds in 2025
Georgia’s Surplus Refund is backed by House Bill 112 and marks the third consecutive year of these payments.
Refund Amounts:
$250 for single filers or married filing separately
$375 for head of household
$500 for married filing jointly
Eligibility Criteria:
Must have filed both 2023 and 2024 Georgia state income tax returns
Return must be filed by May 1, 2025, or by October 15, 2025, with an extension
You must have had a 2023 tax liability
Refund Timeline:
Issued 6–8 weeks after filing, so those who filed by May 1 can expect payments in May or June 2025
Refund Method:
Direct deposit is preferred (used for over 75% of payments)
Paper checks issued if no bank info is on file
How to Check Refund Status:
Visit the Georgia DOR Surplus Refund Tool with your SSN and 2023 AGI.
Example:
If you’re a single filer with a $200 tax liability in 2023, you’ll receive $200, not the maximum $250. The refund is capped at your 2023 liability.
Colorado: TABOR Refunds Up to $1,000
Colorado’s TABOR (Taxpayer’s Bill of Rights) law requires that excess state revenue be returned to residents.
Refund Amounts (2025):
Up to $1,000 for joint filers in higher AGI brackets
Smaller amounts (e.g., $250) for lower-income individuals
Final refund chart released in October 2024
Eligibility Criteria:
Must have filed a 2024 Colorado state income tax return
Refund included with the return as a credit or refund
Refund Timeline:
Ongoing throughout 2025, depending on your filing date
Early filers may already be receiving payments as of May 2025
Controversy to Note:
Legal debates continue over the future of TABOR, but refunds remain active in 2025.
More Information:
Visit the Colorado Department of Revenue TABOR Update.
Oregon: Kicker Refunds Coming in 2026
Oregon’s Kicker Refund is based on a biennial (two-year) budget cycle. Unlike Georgia and Colorado, refunds here are not issued until the year after the return is filed.
Key Facts:
Based on the 2023–2025 biennium, ending June 30, 2025
Refunds will be claimed on 2025 returns filed in 2026
Projected total refund: $1.7 billion
Refunds vary per taxpayer based on 2023 tax liability
Eligibility:
Must file a 2025 Oregon state return in 2026
Refund issued as a credit on that return
Timeline:
Percentage refund announced in November 2025
Refunds issued starting early 2026
Refund Estimator:
Use the Oregon “What’s My Kicker?” Calculator (available after Nov 2025).
Quick Comparison Table
State Refund Program Max Refund Year Eligible Refund Issued Key Details
Georgia Surplus Tax Refund (HB 112) $500 2023, 2024 May–June 2025 Based on 2023 liability, file by May 1
Colorado TABOR Sales Tax Refund $1,000 2024 Throughout 2025 Based on AGI, included in tax return
Oregon Kicker Refund Varies 2024 (filed 2025) Issued in 2026 Refund claimed on 2025 return
What If My State Isn’t Listed?
Not every state issues surplus tax refunds. While 31 states offered some form of tax rebate or cut in 2022, 2025 has seen fewer programs due to budget constraints.
If you don’t live in Georgia, Colorado, or Oregon:
Check your state’s Department of Revenue website
Look for terms like rebate, stimulus, surplus, or tax relief
Some states may issue one-time rebates, especially if budget surpluses are announced later in the year
FAQs About Surplus Tax Refunds 2025
Q1. Are these refunds taxable by the IRS?
Possibly. If you itemized deductions and received a benefit from state taxes paid, your refund might be considered taxable income. Check IRS guidance for 2025.
Q2. What if I filed my taxes late?
In Georgia, you must file by May 1, 2025, or October 15 (with extension), but refunds may be delayed. In other states, timelines vary by filing date.
Q3. Can I get the refund if I didn’t owe taxes?
No. In Georgia, for example, your refund cannot exceed your 2023 tax liability.
Q4. Will there be more states offering refunds later in 2025?
Possibly. Keep an eye on your state’s budget updates and revenue forecasts.
Conclusion
While 2025 isn’t as rebate-heavy as previous years, key states like Georgia and Colorado are returning surplus funds to taxpayers. Oregon’s kicker program adds another opportunity, albeit in 2026. The refund amount, timing, and eligibility depend on where you live, your tax filing status, and income.
Stay informed by visiting your state’s Department of Revenue website and ensure your tax filings are current to receive what you’re owed.