Is my state refund taxable income if I itemized my federal tax return?

It is possible that your state refund is taxable income. You may need to claim all or part of it if:

  • You received a state or local income tax refund, credit, or offset.
  • You itemized deductions

You had the option to choose to deduct either state and local income taxes or general sales taxes. If you chose general sales taxes, none of your refund is taxable.

If you chose state and local income taxes, your state refund is taxable. However, it’s only taxable to the extent that it’s more than the refund you would’ve received by choosing the larger refund from these:

  • Standard deduction
  • General sales tax

Ready to file?

You've got your forms. And we've got your back. There's only one thing left to do. Let's do this.


So how much will you get (or owe) this year? That’s the million-dollar question. We happen to have three very useful calculators to help you estimate your refund or balance due.

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