The one “big check” from Uncle Sam many Americans look forward to each year isn’t exactly sticking around for long.
A recent survey by Nav found that nearly one in three Americans plan to spend their tax refund within the same week they receive it. And this year, those checks are noticeably fatter.
So far in the 2026 filing season, the IRS has issued more than $202 billion in refunds, up nearly 13% compared to the same point last year. The average refund has also increased, now sitting at $3,571 — about $350 higher than it was at this time in 2025.
But this supposed cushion may not last long — and for many, it doesn’t. Wonder why?
2 in 5 Americans Regret How They’ve Spent a Tax Refund
The study, which surveyed residents in 40 of the largest U.S. cities, found that regret varies widely depending on where you live.
Oklahoma City ranked highest for refund regret, with a score of 97.54 out of 100; many Oklahomans said they plan to use their refunds for trips or vacations. Orlando followed close behind, with nearly half of respondents saying they wish they had spent their refund differently, pointing to electronics and gadgets as their biggest mistake.
Memphis and Sacramento tied for the next spots, though for very different reasons. Memphis residents were the most likely to regret being too responsible with their refund, saying they wished they had treated themselves instead.
In Sacramento, along with San Francisco, the issue was sticking to a plan in the first place, with many saying their spending went off track. Indianapolis rounded out the top five, where residents were the most likely to wish they had used more of their refund to pay down debt.
Not everyone ends tax season with regret, though. More than two in five Americans say they are disciplined with how they spend their refunds. Cities like Milwaukee, Seattle, and Albuquerque ranked among the least regretful, with many residents saying their spending matched their plans or that they used the money to pay down debt.
The Biggest Tax Refund Regrets
Spending on dining, nightlife, and entertainment topped the list, cited by more than a third of respondents. Electronics and gadgets followed, with one in four people naming them as their biggest regret, while nearly one in five pointed to clothing purchases. Smaller shares said they regretted lending money, traveling, or even donating.
If given a second chance, many say they would take a more cautious approach. More than two in five Americans said they would save or invest more of their refund, while about one in five said they would focus on paying down debt instead.
How Americans Plan to Use Their Refunds in 2026
But Americans are learning from their mistakes and drastically changing their plans for spending their tax refund this year, driven more by necessity than growth, as this year has so far been a financial dumpster fire.
Paying down debt and putting money into savings are the most common plans, each cited by about a quarter of respondents. Meanwhile, nearly one in five people say their refund is already earmarked for everyday expenses like rent and groceries.
‘Pay My Light Bill’
Nearly one in three Americans say they plan to spend their refund within a week, and about one in four admit they’ve regretted how fast they burned through the money in the past. But for many, it’s not being spent on trivial things.
“Pay my light bill. It’s cold!” one user wrote on a Reddit thread where people listed similar priorities for spending their refund, like groceries, rent, or overdue expenses.
At the same time, not everyone is even expecting a refund this year.
“Y’all are getting refunds???” one person said.
“I’m going to owe thousands most likely,” another added.
For some taxpayers — especially those with multiple income streams or adjusted withholdings — tax season doesn’t bring a payout at all, but an extra bill.
Financially savvy filers often argue that getting a large refund isn’t necessarily a win; it just means you overpaid throughout the year.
“If you’re getting a big refund, you need to adjust your withholdings. It’s an interest free loan to the government. Make that money work for you,” one commenter advised.
So we want to know: What are you doing with your refund money this year? Let us know in the comments!
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- Don’t Make These 13 Major Mistakes While Filing Your Taxes — From filing too early to choosing the wrong kind of return, here are 13 common mistakes to watch out for while filing taxes.
- 28 Ways Your Tax Return Could Trigger an IRS Audit — We spoke to several tax experts and found out just what the IRS is looking for when it’s considering an audit and how you can trigger an audit through mistakes, oversights, and not-so-brilliant deductions.
- The Best (and Worst) States for Income Tax — Every state has its own specific policy — with eight states not charging any income tax at all.
