2026 Tax Refund Delays: 5 States Where Your Money Is Stuck
From New York to Oregon, your state income tax refund could be delayed for weeks. Here's what to know.
The 2026 filing season is shaping up to be a year of "refund whiplash." While the IRS reports an average federal tax refund of $2,548 (so far), state-level checks are moving at a snail's pace in several parts of the country. For many households, these delayed funds are needed to cover essentials like groceries, rent, and other bills.
Why the delays? Well, some state software and forms have to be updated to accommodate (or exclude) the new, temporary tax breaks introduced by the 2025 Trump tax and spending bill.
For example, in South Carolina, taxpayers are being forced into a manual "add-back" process, while Washington, D.C. residents are navigating a historic mid-season policy overturn that has left 42,000 early filers in limbo.
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Between these complex tax shifts, agency staffing cuts, and software glitches, your state refund could be weeks away.
Read on to see if your state is on the "slow list" and how to navigate the 2026 income return backlog.
Idaho tax refund delay in 2026
Idaho 2026 tax refunds could be delayed by up to six weeks, according to a February memo from Lori Wolff, state budget director, to Idaho's Joint Finance-Appropriations Committee. And wait times could stretch even longer.
Key reasons for 2026 Idaho refund delays:
- Budget cuts. Idaho recently reduced the budget of almost every state agency by 1% (in addition to 3% cuts made last year), resulting in fewer temporary staff to process income tax returns.
- Late-breaking tax laws. On February 11, Idaho Gov. Brad Little signed HB 559, retroactively adopting the federal Trump tax law changes for state returns, including the new car loan interest deduction and "no tax on tips."
- System updates. Because the Trump tax law changes were adopted in February, Idaho must now update its tax software and forms to comply with the new law mid-tax season.
For the 158,000 Idahoans who have already filed a state return, the Idaho Tax Commission will provide "more guidance over the next few weeks" for how these taxpayers might take advantage of the new tax breaks on their state returns.
In the meantime, taxpayers who are concerned about the tax due date and the timing of the new law changes can apply for an automatic filing extension. To qualify, a taxpayer must pay 80% of the 2025 estimated tax, or 100% of the total tax reported on last year's return, by April 15, 2026.
Why is the New York state refund taking so long?
New York taxpayers who filed early in the season may be experiencing tax refund delays due to tax software issues.
Key reasons for 2026 New York refund delays:
- New York inflation checks. New York inflation refund checks were mailed out as a one-time payment late last year.
- Third-party delay. According to several local news reports, software provider Intuit TurboTax didn't have the update installed to account for the refund checks.
- The "processing" loop. Taxpayers who filed before the TurboTax software updates were fully implemented — especially those trying to claim new federal tax breaks — may have been stuck in a processing loop, causing delays.
Note: Third-party tax software updates reportedly went into effect in early February 2026. But affected New York income returns may still be stuck in a "processing" phase. If so, taxpayers should ensure software is fully updated to the latest 2026 version before filing.
State income tax refund delay in Oregon
Oregon taxpayers who file paper returns won't have their state income return processed until late March this year, as the first paper-filed refunds are not expected to be issued until early April 2026.
Key reasons for 2026 Oregon refund delays:
- IRS delay. According to the Oregon Department of Revenue (DOR), the IRS was late in providing necessary tax form information to the state agency.
- Trump tax law changes. The delay in providing the necessary information impacts the 2025 Oregon returns. While the Beaver State did not conform to all tax law changes, several were adopted, including "no tax on overtime" and higher standard deduction amounts.
- System updates. Now, the Oregon DOR must finalize tax forms and processing systems to account for these updates, though the impact is expected to be limited to just paper-filed returns.
The state DOR is strongly advising those who still file by mail to switch to electronic filing in 2026. E-filing may be the most effective way to bypass processing bottlenecks and accelerate the delivery of Oregon "tax kicker" refunds.
South Carolina tax refund delayed in 2026
South Carolina tax refunds are expected to take longer this year, according to the state's Department of Revenue (DOR) website.
Key reasons for 2026 South Carolina refund delays:
- Trump tax law changes. Because the state legislature adjourned just before the federal tax bill was finalized, South Carolina remains "decoupled" from the new federal rules. This means that major new tax breaks — like the "senior bonus" deduction and overtime tax deduction — are not currently recognized at the state level.
- Federal taxable income. South Carolina returns begin with federal taxable income. To ensure taxpayers aren't accidentally claiming Trump tax law breaks on their state returns, the state's DOR is requiring filers to manually add back those deductions as income on their 2025 returns.
- Requiring amended returns. Third-party tax software programs initially struggled to calculate these "add-backs" correctly, leading to a surge in "Notice of Discrepancy" letters from the state's DOR and processing delays.
Taxpayers are encouraged to review their forms for errors, including accidental usage of federal tax breaks from the recently passed Trump tax law. Additionally, avoiding paper filing and choosing direct deposit may hasten tax refund distribution.
Why is my D.C. tax refund taking longer than expected?
Although technically not a state, about 361,000 Washington, D.C., taxpayers will likely soon be impacted by delayed tax refunds.
Key reasons for 2026 D.C. refund delays:
- Historic legislative overturn. For the first time in history, the United States Congress has overturned a locally passed D.C. tax and budget law. The overturned legislation had decoupled the District of Columbia tax policy from some federal provisions in the Trump tax law.
- System updates. As the law was overturned only this month, the D.C. tax systems have not been updated with the latest Trump tax bill provisions, causing uncertainty among taxpayers mid-tax season.
- Filers may have to refile. At least 42,000 residents who have already filed a D.C. tax return may have to refile once applicable software and forms are updated; for the remaining taxpayers yet to file, no official guidance has been given.
D.C. Chief Financial Officer Glen Lee outlined the negative consequences of the disapproval resolution in a joint letter to congressional leaders. Lee proposed that District income tax filing deadlines may be extended "into fall 2026."
For more information, check out Kiplinger's report, U.S. Congress Ends Emergency Tax Bill Over $6,000 Senior Deduction and Tip, Overtime Tax Breaks in D.C.
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