Survey: Majority of Americans plan to use tax refund to save, pay off debt

LOS ANGELES, California — If you’re lucky enough to be getting a tax refund this year, there’s a good chance you’ll use it to pay off debt or putting it in the bank.

A new survey from GOBankingRates finds nearly 80-percent of Americans who are receiving a refund will use the money to pay off debt or put it in savings.

That’s up four percent from last year.


Here is how Americans are spending their tax return:

  • Put the money in savings – 41%
  • Pay off debt – 38%
  • Put the money toward a vacation – 11%
  • Splurge on a purchase – 5%
  • Make a major purchase – 5%

Additional Findings:

  • Young millennials aged 18 to 24 are actually the most likely to put their refund toward savings, with 54 percent selecting this answer choice
  • Twenty-five percent of millennials don’t expect to receive a refund this year, compared to nearly two-thirds of those aged 55 and over
  • Seven percent of men chose “make a major purchase,” compared to only three percent of women
  • Sixty-seven percent of those making $150,000 and above plan to spend their refund on a major splurge or vacation, compared to only 15 percent making between $25,000 and $49,999