5. Washington, D.C.

Washington, D.C. has experienced unique complications. Policy changes and legislative adjustments have left tens of thousands of early filers waiting for refunds. Roughly 42,000 taxpayers may be affected while officials work through unresolved tax rule updates.

In some cases, tax deadlines could even be extended later into the year.

Federal Refunds Are Still Moving Faster

While state refunds may be delayed, the Internal Revenue Service (IRS) is still processing most federal refunds on schedule. Taxpayers who file electronically and choose direct deposit usually receive their federal refund within 21 days after the return is accepted.

However, those who file paper returns often wait much longer—sometimes four to six weeks or more.

Another Factor: More Refund Requests in 2026

Some experts say another reason for slower processing is simply higher refund demand.

New tax provisions introduced in 2025 expanded several deductions and tax credits. These include increases to the standard deduction, child tax credit, and new deductions for certain workers and seniors.

As a result, many Americans are receiving larger refunds and filing earlier in the season, which has increased the workload for state tax agencies.