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A tax refund can come as welcome news when it’s time to file your return. But how much can you expect to get back each year? A tax refund calculator can help you figure that out.

Learn how a tax refund calculator works, plus what details impact whether or not you’re overpaying the federal government.

What Is a Tax Refund Calculator?

A federal tax refund calculator looks at your gross income for the year — that’s the amount you earned before any tax withholdings from your paycheck. Then it factors in deductions, including standard or itemized deductions, eligible retirement account contributions, HSA contributions, and any applicable tax credits.

Next, it applies the appropriate tax bracket to your final taxable income to determine how much you owe for the year. Finally, it will subtract any tax payments you made throughout the year, such as those through paychecks or estimated tax payments, from your owed amount. If you overpaid, you’ll be repaid the difference in the form of a tax refund.

How to Track Your Tax Refund

As you prepare for tax season, it helps to understand how long it will take to receive your refund after you file taxes. That way you can account for the funds in your online budget planner for the right time frame, rather than incorrectly assuming when you’ll have that extra cash in the bank.

You can check your federal refund through the IRS website. The information is available more quickly when you e-file your tax return. You can start tracking within 24 hours for a current tax year return or up to four days after e-filing a previous year’s return. If you file a paper return, it can take as long as four weeks to see your refund status.

When you visit the IRS website, be prepared to provide a few basic pieces of personal information: your Social Security number or individual taxpayer ID number; filing status; and the exact refund amount from your return. One of the most common tax filing mistakes is to input the wrong Social Security number, so check your return and refund request carefully before submitting.

How to Calculate Federal Tax Refunds in 2026-2027

Your actual refund amount may vary every year based on changes in your income, eligible deductions, and IRS changes to income tax rates and brackets. So only use a 2025 tax refund calculator for that year’s return, then look for a tax refund calculator for 2026 for this year.

The actual calculation depends on the complexity of your income. For instance, it’s much simpler if you only have W2 income that you’ve already paid taxes on. It can get a little more complicated if you also have things like taxable investment income and self-employment income.

Start with the IRS tax refund calculator to estimate the correct federal income tax withholding. Then you can determine whether or not you’ll get a refund based on how much you’ve already paid throughout the year.

Recommended: 13 Steps to Prepare for Tax Season

How Is the Tax Refund Determined?

The size of your tax refund is determined by the amount of taxes already withheld and the actual tax you owe. If you’ve overpaid throughout the year, the government issues a refund. This applies to several types of taxes, including income taxes and capital gains tax.

On the IRS tax refund calculator for 2025-2026, you’ll need to provide information such as:

•   Tax filing status

•   Eligible tax deductions or credits

•   Sources of income

•   Salary or wages

•   Tax withholdings

•   Estimated tax payments

Once you enter in all of the information, you’ll see your expected tax withholding, how much you will likely owe in taxes, and your projected refund.

Average American Tax Refund

Here is the average federal tax refund by year, using IRS data from late April each year.

More than 102 million tax refunds were processed by October 2025, for a grand total of $311.6 billion. The vast majority is refunded via direct deposit.

The average tax refund varies by location. Here’s a comparison of what the average taxpayer in each state received as a refund in 2022, the latest data available.

Example Tax Refund Scenarios

There are several scenarios in which your withholding total is more than you actually end up owing on your tax return. This is usually due to tax deductions and credits. Here are some examples:

•   Tax credits: There are several tax credits that can lower the amount you owe, including the child tax credit and the earned income tax credit. For instance, in 2026, the child tax credit allows eligible taxpayers to deduct up to $2,200 per child who is 16 years or younger. Up to $1,700 can be taken as a refund. So for a family with two kids, that could add as much as $3,400 to your refund (if not already accounted for in your withholding).

•   Tax deductions: Nearly 90% of taxpayers take the standard deduction instead of itemizing eligible deductions. In 2026, the standard deduction is $16,100 for single taxpayers, and $32,200 for those who are married and filing jointly. That can greatly reduce the amount of taxable income you have — and could even drop you into a lower tax bracket.

Another example of a refund is paying taxes when you don’t actually earn enough to owe. There’s a minimum for how much you have to make to file taxes for each filing status.

Recommended: 10 Personal Finance Basics

How Tax Refunds Impact You

It’s usually good news to find out you’re getting a tax refund instead of owing more on your federal return, especially if you’re filing taxes for the first time or recently increased your income. However, it’s also important to consider that when you get a refund every year, you’re essentially overpaying your taxes. Instead of getting a large lump sum after filing, you could adjust your withholding to enjoy a larger paycheck each month.

When you do get a tax refund, resist the urge to immediately spend it and instead make a strategic plan for the extra funds. One potential money move to make is to pay off high-interest debt like credit card balances. A credit monitoring service can show you your current credit score and what actions can improve it. If you have a lot of outstanding revolving credit, using your tax refund to pay off a chunk could boost your score.

The Takeaway

A tax refund calculator can be a helpful tool in figuring out if you can expect any money back after filing your taxes. But keep in mind that you’ll need a smart financial plan anytime you get a windfall amount of cash.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

When can I expect my tax refund 2026 IRS?

Most federal tax refunds are sent within 21 calendar days of filing your return. The fastest way to get your refund is to e-file and choose direct deposit.

Will tax refunds be bigger in 2026?

You could get a bigger tax refund in 2026 if your income doesn’t increase. That’s because deductions and tax bracket incomes increase each year in order to account for inflation.

Are we getting a Child Tax Credit in 2026?

Yes, the Child Tax Credit is still in place for 2026.

Why is my refund so low in 2026?

There are a few different reasons why your refund could be low in 2026. You may not have withheld enough, or some of your deduction and credit eligibility may have changed. If you earned more for the year, you may owe more taxes on that income, resulting in a lower refund.

How long is it taking to get tax refunds in 2026 with a child?

The typical refund timeline for the IRS is 21 days or less, regardless of whether you have a child dependent.

What is the tax offset for 2026?

If you owe any money to the federal government but have a tax refund, they may withhold that money as an offset to put toward the existing debt. This can include things like past-due child support, federal agency nontax debt, and even state income tax debt.

Photo credit: iStock/urbazon

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

SORL-Q425-054

Your tax bracket reflects the rate you’re taxed, based on your income, and there are currently seven of these ranges. The U.S. uses a progressive tax system; as income rises, so does the tax rate that applies to each layer of income reported on your return.

If you are wondering what the tax brackets for 2025 are, that’s an important question, as the income ranges used to determine your bracket are adjusted periodically by the Internal Revenue Service (IRS) to reflect the impact of inflation.

The tax brackets 2025 filers are assigned to correspond to these federal income tax rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Income ranges used for 2025 tax brackets apply to returns filed in 2026.

2025 Tax Brackets

To find out what tax bracket you are in, check the following table. It illustrates 2025 federal tax brackets and tax rates, based on your filing status.

Recommended: How Much Do You Have to Make to File Taxes?

2026 Tax Brackets

While tax rates for the brackets are the same for 2025 and 2026, the income ranges used to determine tax brackets differ. Here’s a look at 2026 tax brackets so you can see how they compare to federal tax brackets in 2025. The amounts have been adjusted to reflect the impact of inflation.

Knowing how tax brackets work can help you gain a better picture of your income (gross vs. net), which impacts your spending and your savings. This can help you keep an eye on your budget. Using a money tracker can be a smart move, too. This tax bracket knowledge may be especially important for self-employed people who pay taxes quarterly vs. having an employer withhold taxes for them.

The federal government uses a progressive tax system to determine how much individual taxpayers owe. This type of system functions by taking a larger percentage of income from higher earners than lower earners, based on the concept of ability to pay.

Tax brackets assign a tax rate to a specific range of income. Each income range is subject to a different tax rate ranging from 10% to 37% for the 2025 and 2026 tax years. There are seven tax rates, as mentioned, with individual tax brackets for five filing statuses:

•   Single

•   Married filing jointly

•   Married filing separately

•   Head of household

•   Qualifying widow(er)

Some overlap exists across different filing statuses. For instance, single filers and married couples who file separately have identical tax bracket income ranges up to the 35% tax rate. At that point, the range of incomes diverges.

What are the income tax brackets for 2025 at the state level? It varies.

Forty-one states and the District of Columbia assess an income tax. Among them, 14 states use a flat tax rate that applies to all income levels, while the remaining 27 and the District of Columbia use graduated tax rates assigned to different tax brackets.

Also, note that there are different types of taxes. Tax brackets and tax rates for individuals are not the same as tax rates for corporations.

If you need help tracking your money on an everyday basis (not just at tax time), you might try an online budget planner tool.

What Is a Marginal Tax Rate?

A marginal tax rate is the tax rate you pay on the last dollar of income earned. In other words, it reflects the highest tax bracket you’re assigned to based on your income and filing status.

So if you’re looking at 2025 tax brackets, a single filer reporting income of $100,500 would have a marginal tax rate of 22%. That represents the upper limit of what they’d pay in taxes but not what they would pay on their entire earnings (more on this below).

Note that marginal tax rates (and tax bracket income ranges) apply to all your taxable income for the year. Taxable income is any income you receive that is not specifically exempted from taxation by law, including:

•   Wages (which are typically paid on an hourly basis)

•   Salaries (which are typically paid in equal increments on a regular basis, such as biweekly)

•   Tips

•   Business income

•   Royalties

•   Fringe benefits

•   Self-employment earnings

•   Side hustle or gig work earnings

•   Interest earned on savings accounts

•   Earnings from the sale of virtual currencies

If you rent out a home you own, you’re also subject to taxes on investment property. It’s important to report all your income to the IRS, because negative consequences can follow if you don’t. Underreporting income is one of the biggest tax filing mistakes to avoid.

What Is an Effective Tax Rate?

Your effective tax rate is the percentage of tax owed on your taxable income for the year. It reflects the average tax rate you pay, based on how each layer of your income is taxed at different brackets. This concept may be confusing, especially if it’s the first time you are filing taxes.

It’s not unusual for your marginal tax rate and effective tax rate to differ. For example, a single filer with no dependents and a gross income of $100,500 (which is above the average salary in the U.S.) would have a 22% marginal tax rate for 2025.

But that would apply to the income that falls into the $48,476 to $103,350 bracket for their income. The first $48,475 would be taxed at a lower rate (the first $11,925 at 10%, and the amount between $11,926 and $48,475 at 12%). Their effective tax rate would be 16% after accounting for the standard deduction of $15,750 for a single filer. The standard deduction is a set amount you subtract from your taxable income, based on your filing status.

How to Reduce Taxes Owed

Landing in a lower tax bracket can help trim down what you owe. Here are a few strategies to reduce the amount of tax you have to pay.

•   Claim credits. Tax credits reduce your taxes owed on a dollar-for-dollar basis. So if you owe $500 in taxes, you might use a $500 tax credit to cancel that out. Some of the most common tax credits include the Earned Income Tax Credit (EITC), the Child Tax Credit (CTC), and the Retirement Savers’ Credit.

•   Use deductions. Deductions reduce your taxable income, which could automatically put you into a lower tax bracket. The IRS allows you to claim deductions for a variety of expenses, including student loan interest, interest on home equity loans or lines of credit if you use your loan for home improvement, traditional IRA contributions, and charitable donations.

•   Check your withholding. Your withholding is the amount of money you tell your employer to hold back for taxes. If you always owe taxes, you may need to adjust your withholding to make sure you’re paying the right amount each year. “It’s a good idea to check your pay stubs periodically to ensure that the deductions being taken out are accurate and align with your financial goals,” says Brian Walsh, CFP® and Head of Advice & Planning at SoFi. “To make sure the appropriate amount of taxes are being withheld from each paycheck, you may also want to revisit your W-4 annually and make any adjustments as your circumstances change.”

•   Defer compensation. This is another way to reduce taxes for the year. If you’re a freelancer, for example, you might hold off on invoicing clients in December and wait until January so you can carry that income over to the next year’s tax return.

If you’re preparing for tax season, talking to a financial advisor or tax professional can help you figure out the best approach to reduce what you owe, based on your situation.

Recommended: Monitor Your Credit Score

The Takeaway

Understanding how the federal tax brackets work can help you prepare your return with minimal stress. Taxes in the U.S. work on a progressive basis vs. a flat rate, and the more you earn, the more you typically pay. Knowing how the system operates and at what rate you are being taxed is an important part of managing your money and growing your wealth.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

What are the 2025 federal income tax brackets?

The 2025 tax brackets assign seven tax rates based on your income and filing status. The tax rates for 2025 include 10%, 12%, 22%, 24%, 32%, 35%, and 37%, and the same levels are expected for 2026. The federal tax brackets for 2025 apply to returns filed in 2026. Your income plays a key role in determining at what percentage you are taxed.

What is the list of federal tax brackets?

The IRS maintains a list of tax rates and federal tax brackets for 2025, 2026 (both of which are 10%, 12%, 22%, 24%, 32%, 35%, and 37%), and beyond. If you know your taxable income for the year, you can estimate your marginal tax rate. You’ll need to calculate your taxes owed after deductions and credits to find your effective tax rate.

How do I know what tax bracket I am in?

Your income and filing status determine your tax bracket. Calculating your taxable income for the year can help you figure out which tax bracket you fall into.

How much federal tax should I pay on $50,000?

Assuming you’re a single filer with $50,000 in taxable income in 2025, you’d pay these tax rates: 10% on the first $11,925, 12% on $36,550, and 22% on the remaining $1,525. In total, your estimated federal tax due would be about $5,914.

How much federal tax would you pay on $100,000?

Assuming you’re a single filer with $100,000 in taxable income in 2025, you’d pay 10% on $11,925; 12% on $36,550 ($48,475 – $11,925); and 22% on $51,525 ($100,000 – $48,475). That would equal $16,914.

What tax bracket is $60,000 for married filing jointly?

Based on 2025 tax brackets, a married couple filing a joint return with $60,000 in taxable income would be in the 12% tax bracket, with the first $24,800 of their income taxed at 10%.

About the author

Rebecca Lake

Rebecca Lake has been a finance writer for nearly a decade, specializing in personal finance, investing, and small business. She is a contributor at Forbes Advisor, SmartAsset, Investopedia, The Balance, MyBankTracker, MoneyRates and CreditCards.com. Read full bio.

SORL-Q425-057

The Internal Revenue Service (IRS) uses seven different tax brackets to determine how much you owe when married filing jointly or any other status. In the U.S., taxpayers are subject to a progressive tax system which means that as your income increases, so does your tax rate. Tax brackets determine which tax rate is assigned to each layer of income you have.

The IRS takes your filing status into account when establishing tax brackets, which is important for couples to know. What are the 2025 tax brackets for married filing jointly? Here’s what you need to know.

2025 Tax Brackets

If you’re wondering what tax bracket you’re in, that’s a good question to ask, especially if you’re filing taxes for the first time or your filing status has changed because you’ve gotten married.

Married filing jointly 2025 tax brackets correspond to seven federal income tax rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Income ranges used for 2025 tax brackets apply to returns filed in 2026.

What are the tax brackets for 2025 married filing jointly? The table below breaks it down.

2025 Tax Brackets

To find out what tax bracket you are in, check the following table. It illustrates 2025 federal tax brackets and tax rates, based on your filing status.

Recommended: How Much Do You Have to Make to File Taxes?

2026 Tax Brackets

While tax rates are the same for 2025 and 2026, the income ranges for each tax bracket are higher. Here’s a look at how 2026 tax brackets compare to 2025 tax brackets for married jointly filing and all other filing statuses. This information can be helpful as you track your finances.

How Federal Tax Brackets and Tax Rates Work

In the U.S., the tax code operates on a progressive system that takes into account your income and filing status to determine how much tax you’ll owe. In a progressive system, the highest-income earners are subject to the highest tax rates. This is based on a concept called ability to pay, which reasons that if you earn more, you can afford to pay more in taxes.

Federal tax brackets assign a tax rate to individual income ranges. There are seven tax rates and seven corresponding income ranges. Tax rates, which run from 10% to 37%, are the same for the 2025 and 2026 tax years and apply to these individual income tax filing statuses:

•   Single

•   Married filing jointly

•   Married filing separately

•   Head of household

•   Qualifying widow(er)

Tax rates may be the same from year to year, but income ranges can change. For instance, the tax brackets for 2024 married jointly filing are different from the tax brackets for 2025 married jointly.

If you look at the income ranges, you’ll see that they’re largely the same for most filing statuses. The exception is married couples filing jointly. Couples have higher income ranges since it’s assumed that both parties earn income.

Curious about what are the tax brackets for 2025 married filing jointly at the state level? It depends on where you live and file state income taxes.

Forty-one states and the District of Columbia assess an income tax. Fourteen states use a flat tax rate that applies to all income levels, while the remaining 27 and the District of Columbia use graduated tax rates assigned to different tax brackets.

Keep in mind that there are different types of taxes. Tax brackets and tax rates for individuals are not the same as tax rates for corporations.

Recommended: Credit Monitoring Tools

What Is a Marginal Tax Rate?

A marginal tax rate is the tax rate you pay on the highest dollar of taxable income you have. Your marginal tax rate doesn’t apply to all your income; just to the last dollar earned.

For example, say that you take a new job with a higher salary and move from the 22% to the 24% marginal tax rate. That doesn’t mean that your entire salary is now taxed at the 24% rate. Only the amount that goes over the income threshold into the 24% bracket would be assessed at that rate.

Marginal tax rates apply to all your taxable income for the year. Taxable income is any income you receive that isn’t legally exempt from tax, including:

•   Wages (pay that’s typically based on the hours worked)

•   Salaries (pay that’s typically a fixed amount that’s paid regularly)

•   Tips

•   Business income

•   Royalties

•   Fringe benefits

•   Self-employment earnings

•   Side hustle or gig work earnings

•   Interest on savings accounts

•   Profits from the sale of virtual currencies

You’ll also pay taxes on investment property if you own a rental unit. It’s important to accurately report to the IRS all income you and your spouse have for the year to avoid issues.

Underreporting and misrepresenting income are some of the biggest tax filing mistakes people make.

What Is an Effective Tax Rate?

Your effective tax rate is your average tax rate based on how your income is taxed in different brackets. It’s common for your effective tax rate to be lower than your marginal tax rate.

If you and your spouse file jointly with $250,000 in income (meaning you each earn more than the average salary in the U.S.), your marginal tax rate would be 24%. But your effective tax rate would be 17.5%. That assumes that you claim the standard deduction.

Standard deductions are amounts you can subtract from your taxable income. The standard deduction amount for married filing jointly in 2025 is $31,500.

Recommended: Online Budget Planner

How to Reduce Taxes Owed

Reducing your tax liability as a couple starts with understanding what kind of tax breaks you might qualify for. It can also involve some strategizing regarding your income.

•   Claim credits. Tax credits reduce your taxes owed on a dollar-for-dollar basis. So if you owe $500 in taxes you could use a $500 tax credit to reduce that to $0. Some of the most common tax credits for couples include the Child Tax Credit (CTC), the Child and Dependent Care Credit, and the Retirement Savers’ Credit.

•   Consider itemizing. Couples can claim the standard deduction, but you might itemize if you have significant deductible expenses. Some of the expenses you might deduct include mortgage interest if you own a home, student loan interest, and charitable contributions.

•   Open a spousal IRA. Individual retirement accounts (IRAs) let you save money for retirement on a tax-advantaged basis. Contributions to traditional IRAs are tax-deductible for most people. If you’re married but only one of you works, you could open a spousal IRA and make deductible contributions to it on behalf of your nonworking spouse.

•   Contribute to other retirement accounts. If you both work, you can still fund traditional IRAs for a tax deduction, or sock money into your 401(k) plans at work. Contributions to a 401(k) can reduce your taxable income for the year, which could help you owe less in taxes.

•   Check your withholding. Your withholding is the amount of money you tell your employer to hold back for taxes. Getting a refund can feel like a nice windfall, but that just means you’ve loaned the government your money for a year interest-free. You can adjust your withholding to pay the right amount of tax instead.

“It’s a good idea to check your pay stubs periodically to ensure that the deductions being taken out are accurate and align with your financial goals,” says Brian Walsh, CFP® and Head of Advice & Planning at SoFi. “To make sure the appropriate amount of taxes are being withheld from each paycheck, you may also want to revisit your W-4 annually and make any adjustments as your circumstances change.”

You may also defer year-end bonuses or other compensation until the beginning of the new year so you have less taxable income to report. As you start preparing for tax season, consider talking to a financial advisor or tax pro about the best strategies to minimize your taxes owed.

The Takeaway

Knowing how tax brackets work (and which one you’re in as a married couple filing jointly) can help you get your tax return completed accurately with fewer headaches. It also helps to keep a record of your deductible expenses throughout the year if you plan to itemize when you file. That’s something a money tracker can help with.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

What is the standard deduction for married filing jointly in 2025?

The standard deduction for married couples filing jointly is $31,500 for the 2025 tax year. That amount increases to $32,200 for the 2026 tax year.

What are the federal tax brackets for married couples?

The federal tax brackets for married couples filing joint returns assign seven tax rates ranging from 10% to 37%. For tax year 2025, the lowest tax rate applies to the first $23,850 in income while the highest tax rate applies to income above $751,601.

Will tax refunds be bigger for 2025?

Many taxpayers may qualify for a larger refund on their 2025 return, due to inflation-related adjustments to the tax brackets and standard deduction amounts.

What is the tax offset for 2025?

Tax offsets occur when the federal government holds back part or all of your tax refund to satisfy a delinquent debt. Tax offsets can happen if you owe federal income taxes or federal student loan debts.

How will tax brackets change for 2025?

The 2025 tax brackets are subject to the same tax rates that applied in 2024 and will apply in 2026; the difference is the range of incomes subject to each tax rate. The IRS periodically adjusts tax brackets as well as standard deduction limits to account for inflation.

At what age is social security no longer taxed?

There is no minimum or maximum age at which Social Security benefits cannot be taxed. Whether you must pay tax on Social Security benefits depends on whether you have other taxable income to report for the year.

photo credit: PonyWang
SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

SORL-Q425-055

Did you know that you may be able to draw out student loan repayment for 20 or 30 years? That means lower monthly payments, but you’ll pay more total interest over the loan term.

If your payments are a strain, consolidating or refinancing your student loans may allow you to stretch out repayment terms and tame those monthly bills. For borrowers with federal student loans taken out before July 1, 2026, you may also consider the Extended Repayment Plan that increases the term of your loan from 10 to 25 years. While it may make your monthly payments lower in the short term, in the long term, you’ll pay more interest with any of these options.

Ahead, we look at how student loan repayment terms work, the pros and cons of extending your loan term, and other options that might help you make your monthly payments more affordable.

How Long Are Student Loan Repayment Terms Usually?

Federal student loan borrowers are automatically placed on the Standard Repayment Plan of 10 years unless they choose a different plan. They enjoy a six-month grace period after graduating, leaving school, or dropping below half-time enrollment before repayment begins.

There isn’t a standard repayment plan for private student loans, but the general repayment term is also ​10 years.

In the case of both private and federal student loans, you may be able to extend your student loan payments.

For example, if you have federal student loans, you can explore the following options:

•  Graduated Repayment Plan: Available to borrowers with all loans taken out prior to July 1, 2026. On this plan, you start with lower payments, and payments increase every two years for up to 10 years, or up to 30 years for Direct Consolidation Loans. Consolidation combines all of your federal student loans into one, with a weighted average of the loan interest rates, and often extends your repayment time frame.

•  Extended Repayment Plan: Available to borrowers with all loans taken out prior to July 1, 2026. With the Extended Repayment Plan, you can extend your loan term to 25 years, though you must have $30,000 or more in Direct or Federal Family Education Loan Program loans.

•  Income-driven repayment plan: Income-driven repayment plans allow you to make payments based on your income. This is a good option if you’re struggling to pay your monthly bill because your income is low compared with your loan payments. You may be eligible for forgiveness of any remaining loan balance after 20 or 25 years of qualifying payments or as few as 10 years if you work in public service. Keep in mind that for loans taken out on or after July 1, 2026, borrowers will only have one option for income-based repayment, the new Repayment Assistance Program.

If you have private student loans, you may be able to refinance your loans for a longer term. You can also refinance federal loans, but you’ll lose access to many of the benefits, including income-driven repayment plans and student loan forgiveness.

What Are the Pros and Cons of Extending Repayment Terms?

Let’s take a look at three pros and three cons of extending your student loan repayment terms:

Lower monthly payments can give you more flexibility and free up your money to go toward other things. However, you may pay considerably more interest over time. You’ll also spend more time paying off your loans.

Here’s an example of what extending student loan repayment can look like, using a student loan calculator:

Let’s say you have $50,000 of student loan debt at 6.28% on a standard repayment plan. Your estimated monthly payments are $562.16, the total amount you’ll pay in interest will be $17,459, and your total repayment amount will be $67,459.

•  Term: 10 years

•  Monthly payments: $562

•  Total interest amount: $17,459

•  Total repayment amount: $67,459

Now let’s say you choose to refinance. Refinancing means a private lender pays off your student loans with a new loan, and you receive a new interest rate and/or term. In this case, let’s say you opt to refinance to a 20-year term and qualify for a 5% rate. Your estimated monthly payments would be $329.98. You’d pay $29,195 in total interest, and the total repayment would be $79,195 over the course of 20 years.

•  Term: 20 years

•  Monthly payments: $330

•  Total interest amount: $29,195

•  Total repayment amount: $79,195

In this example, doubling the term but reducing the interest rate results in lower monthly payments — a relief for many borrowers — but a higher total repayment sum. You’ll pay nearly double in interest charges over the life of the loan.

How Long Can You Extend Your Student Loans For?

You can extend your federal student loan repayment to 30 years on a Graduated Repayment Plan if you consolidate your loans. Again, only borrowers with loans taken out prior to July 1, 2026 will be eligible.

Most private lenders limit refinancing to a 20-year loan term, but borrowers who are serial refinancers may go beyond that. With consecutive refinances, you can stretch a private loan term to 25 to 30 years.

Consecutive Refinances

You can refinance private or federal student loans as often as you’d like, as long as you qualify. Refinancing can benefit you when you find a lower interest rate on your student loans, but be aware of the total picture:

How do you know when to refinance student debt? If you find a lower interest rate, you could save money over the life of the new loan.

You can use a student loan refinancing calculator to estimate monthly savings and total savings over the life of the loan.

Refinancing Your Student Loans to a 30-Year Term

You cannot directly refinance your student loans into a 30-year term because almost all refinance lenders offer a maximum of 15- or 20-year terms. But you could take advantage of consecutive refinances to draw out payments for 30 years.

Or, you could opt for consolidation of federal student loans for up to 30 years.

Consecutive Refinance Approach

Since there’s no limit on the number of times you can refinance your federal and private student loans, as long as you qualify or have a cosigner, you can refinance as many times as you need to in order to lengthen your loan term.

Direct Consolidation Approach

If you have multiple federal student loans, you can consolidate them into a Direct Consolidation Loan with a term up to 30 years. Because the loan remains a government loan, you would keep federal student loan benefits and may even qualify for loan forgiveness after 20 or 25 years.

While extending your loan term may reduce your monthly payments in the short-term, it’s likely it will cost you more in interest in the long term. If you are struggling to make your federal loan payments, you might be better off choosing an income-driven repayment plan instead of extending your loan term.

Other Ways to Reduce Your Monthly Student Loan Payments

One of the best ways to reduce your monthly student loan payments is to talk with your loan servicer to determine your options. Some student loan servicers shave a little off your interest rate if you make automatic payments, for example.

More employers are considering offering help with student loan payments as an employee perk, too. Employers can contribute up to $5,250 per worker annually in student loan help without raising the employee’s gross taxable income. And starting in 2027, the $5,250 annual limit will be adjusted for inflation.

The Takeaway

A 30-year student loan refinance can offer real benefits, including lowering your monthly student loan payments. By stretching repayment over a longer period, you may gain more financial breathing room and improved cash flow.

But this convenience comes at a cost: extending the repayment term means paying more interest overall, and refinancing federal loans removes valuable protections such as income-driven plans and loan forgiveness.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

FAQ

What is a 30-year student loan refinance?

A 30-year student loan refinance extends your repayment term to up to 30 years, significantly reducing your monthly payment by spreading the balance over a longer period. While this can improve cash flow, it typically results in paying more total interest over the life of the loan.

What is the main benefit of refinancing to a 30-year term?

The main advantage of refinancing student loans to a 30-year term is reduced monthly payments. This can free up cash flow if current payments are a financial strain.

What is a major downside to choosing a longer term student loan refinance?

Extending the repayment period means you’ll likely end up paying significantly more in total interest over the life of the loan.

About the author

Melissa Brock

Melissa Brock is a higher education and personal finance expert with more than a decade of experience writing online content. She spent 12 years in college admission prior to switching to full-time freelance writing and editing. Read full bio.

SoFi Student Loan Refinance
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