This tax season, many Americans are bracing for a smaller return, but a new report says four Texas cities, including Houston, could be among the top 10 in the nation with the biggest refunds.
According to personal finance site MagnifyMoney's annual tax study, Houston ranks fifth in the country for biggest tax refunds. MagnifyMoney used IRS data to collect tax bill and refund amounts in the 100 largest metro areas around the country for 2013 through 2017.
Researchers found that during that period, 78 percent of Houston taxpayers received refunds averaging $3,587, a $14 decrease from the average for 2012-2016.
Not far behind was Dallas (ranked No. 8), with 78 percent of its taxpayers receiving $3,334 on average on their refunds. Unlike Houston, Dallas' refunds slightly increased, by $5, from the 2012-2016 period.
The other Texas cities with big refunds were McAllen (No. 4) and Corpus Christi (No. 7). Eighty-eight percent of McAllen taxpayers received refunds averaging $3,659. In Corpus Christi, 82 percent of taxpayers received refunds averaging $3,430.
Nationwide, 19 percent of taxpayers ended up owing the IRS, while 77 percent got refunds from 2013 through 2017, according to the study. The national refund average clocked in at $3,016, trailing Houston by $571.