Nearly Third of Us Still Procrastinate on Taxes

As the 2026 tax filing season approaches, many Americans are once again putting off their returns. IPX1031’s 7th annual Tax Procrastinators report finds 29 percent of Americans will procrastinate filing their taxes this year, a slight improvement from 31 percent in 2025. New in 2026, 21 percent of Americans say they plan to use artificial intelligence to help file their taxes this year. 

While nearly 3 in 10 Americans will procrastinate filing their taxes, more than 1 in 5 (22 percent) say they don’t feel prepared to file in 2026. The top reasons for procrastinating include:

1. The process feels too complicated or stressful
2. Filing takes too much time
3. Fear of owing money

Although Tax Day 2026 is April 15, nearly 1 in 5 Americans (19%) don’t know the filing deadline. As for when they plan to file, 15 percent will in January, 38 percent in February, 26 percent in March, and 18 percent in April. Nearly 1 in 5 (19 percent) even admit to procrastinating until Tax Day to file.

1 in 5 Americans Will Use AI to Help File Taxes

Nearly half (46 percent) of Americans trust AI to give accurate tax guidance or information and 21 percent say they will use AI to help file their taxes. The top ways people plan to use AI is to help answer filing questions, find deductions or credits, and review returns for mistakes.

Using Google search data related to tax filing deadlines, we identified the states most likely to procrastinate filing taxes. For the 4th year in a row, Wyoming ranks #1. Alaska is 2nd, followed by Vermont, North Dakota, and Delaware. The top five is unchanged from the 2025 Tax Procrastination report. However, South Dakota moved up to 6th place, pushing Hawaii and Rhode Island further down the rankings.

In a change from 2025, New Jersey moved from the #41 spot to #50, becoming the state least likely to procrastinate filing their taxes. Wisconsin and Pennsylvania also rank among the states least likely to delay filing.

When it comes to refunds, expectations are mixed. More than 2 in 5 (44 percent) Americans expect their refund to be about the same size as last year, while 32 percent  anticipate a smaller refund and 23 percent  expect a larger one. According to the Internal Revenue Service (IRS) the average tax refund in 2025 was $3,052.

As for how Americans will use their tax refund, 19 percent plan to save it, 18 percent  will use it to pay off debt, and 9% plan to put it toward an emergency fund. More than a quarter (27 percent ) don’t expect to get a refund at all.

Americans spend an average of $128 per year on tax preparation with the majority filing through an online service (69 percent), followed by filing through an accountant (27 percent ), and 4 percent use other methods. More than 1 in 4 (27 percent ) of business owners and investment property owners say they struggle with filing taxes for their business or property.

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 learn more about how a 1031 Exchange can help preserve and grow your assets when selling and buying investment properties.  Learn more about Investment Property Exchange Services, Inc. (IPX1031), the nation’s largest 1031 Exchange company.