IPX1031 Insight Blog

Tax Day 2023: America’s Biggest Procrastinators

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For the latest data, please take a look at our Tax Procrastinators 2024 report.

​It’s that time of the year again: tax season. While filing tax returns may feel overwhelming, taxpayers handle the stress differently. Some may file as soon as possible while many avoid it until the last minute.

 

For the fourth year in a row, we sought to discover which states and major cities are home to the largest number of tax procrastinators. To do so, we analyzed Google search data relating to the tax filing deadline. Our data shows Wyoming ranked number one for tax procrastinators for 2023.

Similar to our 2022 Tax Procrastination study, we also found that people living in Las Vegas and Baltimore tend to wait as long as possible to file!

 

Biggest Procrastinators by State in 2023

Biggest Tax Procrastinators by State 2023 Data Infographic

While the biggest tax procrastinators are in Wyoming, other states also struggle with early tax filing. Vermont, Alaska, North Dakota, and South Dakota all ranked second, third, fourth, and fifth, respectively. Alaska has remained in the top 5 of procrastinators since 2021. Rounding out the top 10 for tax procrastinators is Delaware, Rhode Island, Montana, Maine, and New Hampshire.

The states procrastinating the least include Ohio, Pennsylvania, Florida, Texas, and Michigan.

 

Biggest Procrastinators by City in 2023

Biggest Tax Procrastinators by City Data 2023 Infographic

We also wanted to look at the biggest procrastinators among the 30 largest cities in the U.S.

Baltimore tops the list in 2023, moving up from its #4 spot in 2022. Las Vegas ranks second (in 2022 it was first), and Boston comes in third. In 2023, Denver ranks fourth, moving down two spots from 2022. Finishing out the top 10 is Portland, Detroit, Washington D.C., Louisville, Seattle, and Memphis.

Just like in years past, some of the country’s biggest cities are home to the least amount of tax procrastinators including New York City, Chicago, and Los Angeles.

 

Why Are Americans Procrastinating Doing Their Taxes in 2023?

Tax Day and Tax Filing Procrastination Data Infographic

Nearly 1 in 3 (30%) Americans don’t feel prepared to file their taxes this year. That may be why 32% admit to procrastinating doing their taxes. While 41% plan to file in February, 26% say they’ll file in March, and 17% plan to cut it close, filing in April.

As for why Americans are avoiding doing their taxes: the top reason is that it’s just too complicated and stressful. Others are avoiding the task because it’s too time consuming, or they don’t believe they’re getting a refund. When it comes to actually filing taxes, 70% say they use an online service, 23% do so through an accountant or tax preparer, and 7% ask the help of family or friends.

 

When is Tax Day 2023?

Tax Day is April 18. However, nearly 1 in 3 Americans don’t know when the tax filing deadline is. Among the generations, 53% of Gen Z, 33% of Millennials, 23% of Gen X, and 20% of Baby Boomers are unsure of the deadline. In fact, 13% of Gen Z and nearly 1 in 10 Millennials believe Tax Day is April 20.

 

Tax Refund Expectations in 2023

Tax Refund Expectations Data 2023 Infographic

According to the Internal Revenue Service (IRS), the average refund in 2022 was $3,039. That’s up 7% from 2021. However, 2 in 5 Americans expect their tax return to be smaller in 2023 than in 2022. The average expected tax return among Americans is $1,956. Millennials expect to be refunded the most, on average expecting $2,161. While many expect to receive smaller amounts, 1 in 5 Americans think their tax return will be larger in 2023, compared to 2022.

The top things Americans plan to do with the refund money include saving it, paying off debt, using it on everyday expenses, paying rent or mortgage, or investing.

More than half (51%) report having investments. Among them, 42% say they get help from online services to file taxes on their investments, while 29% report filing on their own.


If you are interested in deferring your taxes on investment real estate, consider a 1031 Tax Deferred Exchange. You can use our Capital Gain Estimator or click here to learn more about how a 1031 Exchange can help preserve and grow your assets when selling and buying investment properties.


Methodology

In January 2023, we conducted a survey of 1,007 people from around the U.S. Among respondents, 48% identified as male, 49% as female, and 3% as non-binary or transgender. Respondents aged in range from 18-90 with an average age of 39.

To rank the states and cities, we analyzed nearly 200 Google search terms relating to the tax filing deadline from January-September 2022. We took the average number of monthly searches for each state and city and calculated the searches per 100,000 residents.

For media inquiries, contact media@digitalthirdcoast.net

Fair Use

When using this data and research, please attribute by linking to this study and citing IPX1031.


Read more:

1031 Information Exchangers Should Know When Filing Taxes
Tax Day 2024: America’s Biggest Procrastinators
Tax Day 2022: America’s Biggest Procrastinators
Tax Day 2021: America’s Biggest Procrastinators
Tax Day 2020: America’s Biggest Procrastinators
1031 Exchange and Defer? Or Sell and Pay Taxes?
Best Large Cities to Buy Investment Property 2020

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