Several US states continue to issue multiple rounds of local tax refunds that are not connected or related in any way to those sent by the Internal Revenue Service (IRS). This is money that the tax authority returns to Americans who have paid more taxes than they owe.
Eligibility for these state tax benefits is not universal or uniform across the country. The criteria vary significantly by jurisdiction, with the most common determining factors being household income level, the applicant’s age, permanent residency status, and timely filing of state tax returns.
First place: New Jersey’s ANCHOR program
The program considered most noteworthy for 2026 is New Jersey’s ANCHOR initiative. This program offers financial assistance of up to $1,750 per household. It is explicitly aimed at both homeowners and renters, with the stated goal of easing the burden associated with homeownership and rent costs. Eligibility is subject to an annual household income limit of less than $250,000.
The process for accessing the refund is not entirely automatic in all cases. Applicants must complete the consolidated application form identified as PAS-1.
Second Place: TABOR Colorado refund
In second place is the constitutional mechanism known as the TABOR Refund in the state of Colorado. This program is unique because it is enshrined in the state constitution and mandates the repayment of income exceeding a legally established growth limit.
By 2026, refund amounts could reach up to $1,500 for married couples filing jointly, or $750 for individual taxpayers. Eligibility requires being a full-time resident of the state, being 18 years of age or older, and having filed the corresponding state income tax return.
The TABOR refund is processed without the need for an additional application for those who fulfilled their filing obligation. Additionally, the state administers a supplemental benefit called the PTC Rebate, which can provide up to $1,154 for seniors 65 and older and people with disabilities, extending support to vulnerable populations.
Third Place: Pennsylvania Property/Rental Refund
The third-ranked program is Pennsylvania’s Property Tax/Rent Rebate (PTRR). This initiative provides refunds of up to $1,000 to help offset property tax or rent payments. The target audience is more narrowly defined than in other states, primarily aimed at adults 65 and older, widows/widowers over 50, and people with disabilities, all of whom have low incomes according to official income brackets.
One logistical advantage of this program was the extension of the application deadline, which remained open until December 2025. This extension allows payments to continue being processed and distributed throughout much of 2026.
Fourth Place: Alaska PFD Program
The fourth position is held by Alaska’s Permanent Fund Dividend. Although technically not an income tax refund, its economic function is comparable. The payment, estimated at up to $1,000 per resident by 2026, is funded by the state’s oil revenues, not general tax collection.
The eligibility requirements are strict regarding residency, requiring that the person have lived in the state for the entire previous calendar year. The payment is distributed automatically to all residents who meet the criteria, without establishing any “income-based” criteria.
Fifth Place: Oregon’s “Kicker” Rebate
Finally, the fifth-ranked program is Oregon’s Kicker Tax Refund. Its calculation mechanism is unique, as it returns a percentage of the state tax liability paid in the previous year to taxpayers. For the 2026 cycle, the refund percentage was set at approximately 9.86% of the state tax paid in 2024.
This translates to an average refund of $493, although amounts can reach several thousand dollars for taxpayers who made substantial tax payments. The process is automatic for all residents who filed their 2024 state tax return.
