The 2026 tax season brought a complication few taxpayers saw coming: while federal IRS refunds arrive in an average of 21 days for people who file electronically, state tax refunds in at least six jurisdictions are running weeks behind.
The main reason is the One Big Beautiful Bill Act (OBBBA), the tax law President Trump signed on July 4, 2025, which introduced exemptions for tips, overtime, and special deductions for seniors. Each state had to decide whether to adopt those changes, and several still haven’t finished adapting.
The average federal refund reported by the IRS this season is $2,548. But the state refund — which can mean an extra $300 to $1,500 depending on the state and income — still hasn’t arrived for hundreds of thousands of taxpayers.
New York: outdated software trapped early returns
New York is one of the most widespread cases. People who filed their state return before TurboTax completed its software updates got stuck in a processing loop that the state’s Department of Taxation hasn’t been able to resolve quickly. According to local reports published in March 2026, a significant number of returns are still marked “processing” with no estimated resolution date.
The state also didn’t immediately adopt the new federal deductions, which created mismatches between federal and state returns for thousands of taxpayers.
Oregon: the IRS sent information late and froze the whole system
Oregon faced a different problem but one just as costly in terms of time. The IRS was late giving Oregon’s Department of Revenue the updated tax forms the state needed to program its paper return processing systems.
As a direct result, paper returns didn’t start processing until late March, and the first corresponding refunds weren’t issued until April. The department strongly recommends filing electronically to avoid this chain of delays.
South Carolina: refuses to adopt federal law and requires manual corrections
South Carolina is the most complicated case from a legislative standpoint. The state’s Department of Revenue issued an official notice stating that “processing 2025 returns is taking longer than usual because South Carolina currently does not conform to the federal One Big Beautiful Bill Act.”
This has a direct practical consequence, which is that taxpayers who deducted tips, overtime, or the seniors’ deduction on their federal return have to add those amounts back as income on their state return. The process is done manually. The department itself anticipates that many taxpayers didn’t make this correction and will have to file an amended return, which extends the wait even further.
Idaho: budget cuts and delay in official conformity
In Idaho, the delay has two simultaneous causes. State budget cuts reduced the staff available to process returns, which slowed things down even before the legislative factor came into play.
Additionally, Governor Brad Little didn’t officially confirm the state’s conformity with the new OBBBA provisions until February 11, 2026 — a date by which 158,000 residents had already filed their returns. That created a backlog the state system couldn’t absorb without delays of up to six weeks.
Washington D.C.: legal battle that paralyzed processing
The District of Columbia voted at the end of 2025 not to adopt the new federal tax laws, arguing the changes would cost it more than $600 million in revenue.
Congress reversed that decision, and Trump signed the reversal into law. The result was that roughly 42,000 taxpayers who filed early ended up in an unclear situation: their returns were processed under rules that later changed, and the district had to readjust its systems mid-season.
Michigan: unusual volume and complex cases left behind
Michigan didn’t have a legislative conflict, but it didn’t escape the delays either. The state’s Treasury Department reported an unusual increase in the number of early filed returns in February 2026. Although most taxpayers receive their refund in four to six weeks after the return is accepted — the usual timeline — those with more complex tax situations may wait longer.
How to check the status of your state refund Each of these states has an online tracking tool. You’ll generally need your Social Security number, the tax year, and the estimated refund amount. Search for “Where’s My Refund” followed by the state name on the official Department of Revenue website. If you filed electronically, the system usually updates within 24 to 48 hours after your return is accepted. If you filed on paper, the update time can stretch to two or three weeks.
Anyone who filed on paper in any of the states mentioned should consider switching to electronic filing next season: it’s the single most consistent way to cut down processing times in every state, regardless of legislative or software issues.
