8 Home Upgrades You Can Finally Check Off Your List, Based on Your Tax Refund

Adding a Peel-and-Stick Kitchen Backsplash

Installing a peel-and-stick kitchen backsplash is both cost-effective and relatively easy for the average DIYer.

“Peel-and-stick backsplash tiles or classic subway tiles can transform a kitchen for as little as $200 to $500,” says Alecia Taylor, interior designer at CabinetNow.com.

Due to the low cost and simple process involved with a peel-and-stick backsplash installation, this project is top choice for homeowners that received a modest tax refund.

Want more home reno project tips and inspiration? Sign up for our free daily newsletter for the latest how-tos, reno guides, and more!

Painting

Painting your home can immediately change the appearance of a room, giving homeowners the opportunity to transform the space according to their personal preferences.

“A fresh coat of paint is one of the simplest ways to breathe new life into any room, and it can be done for under $300 if you’re doing it yourself,” suggest Jeri Goodwin Dausey, general contractor at Violation Clinic.

Keep in mind that if you want to paint more than one room, then the cost of materials will increase. And if you’re painting the exterior of the house, then you will need a larger budget to ensure you can paint all four sides of the home.

Updating Light Fixtures

Making changes to the lighting throughout the home can have a significant impact on the appearance and functionality of the household.

“Replacing LED under-cabinet lighting, pendant light, or newer light fixtures can create a warm welcome for under $500,” Taylor says.

The reasonable cost of the project, paired with the wide variety of lights and light fixture designs makes it a great option for a home upgrades, regardless of how much you received on your tax return. Switching out incandescent bulbs with LEDs is both affordable and an excellent way to save money on the cost of your energy bills.

Installing Gutter Guards

Some of the best home upgrade projects are intended to safeguard the home from existing issues. Installing gutter guards will protect the gutter system and foundation by preventing debris from entering the gutters, where it can cause clogs or ice dams.

“You can install gutter guards if you do not already have them on your home,” says Brandon Foote, Roofing Contractor and Owner of Advanced Roofing & Construction. “This is a project that some homeowners might be able to DIY, but if contracted out will fall between $800 to $1,500 for a full gutter guard installation.”

Cabinet Refacing

Installing brand new kitchen cabinets is a costly and time-consuming job that would be difficult to cover with the money you receive from your tax return. However, Taylor suggests refacing as an alternative option.

“Instead of replacing cabinets entirely, homeowners may update their kitchen or bathroom by painting or installing new doors,” Taylor says. “A pro refacing job may run $1,500 to $4,000, but do-it-yourselfers can paint for pennies on the dollar.”

You can take the time to swap out any old knobs or pulls with new hardware to update the aesthetic appeal of the kitchen or bathroom.

Upgrading Attic Insulation and Ventilation

In some cases, making worthwhile investments in the property won’t have an immediate impact on the home, but the benefits will be seen over a long period of time. A great example of this is when you replace old, ineffective insulation with new insulation or install attic ventilation upgrades to improve household energy efficiency and reduce the cost of your energy bills.

“Upgrading old or inefficient insulation and ventilation in an attic is a great project that homeowners can either take on themselves or hire out for,” Foote says. “Hiring a professional will cost about $1.75 to $2.75 per square foot for insulation and a little on the higher end for ventilation upgrades, around $600 to $1600, coming in comfortably under most people’s average tax return.”

Installing New Flooring

An excellent way to spend your tax return is to invest in new flooring for the home.

“Homeowners who are comfortable taking on some DIY projects, tasks like installing flooring, basic landscaping, or changing light fixtures are all solid options,” Goodwin Dausey says. “These kinds of upgrades avoid the added cost of labor while still making a noticeable impact on daily living.”

While this installing new flooring does have a higher price range than other home upgrades, it’s more than possible to complete as long as you have the ability to DIY the project.

Minor Bathroom Renovation

The cost to fully renovate a bathroom, including a new shower/bath, toilet, vanity, flooring, tiling, and lighting, will surpass the average amount you will receive from a tax return.

“With the average American tax refund falling around $3,000, that budget opens the door to quite a few meaningful home improvements,” Goodwin Dausey says. “This could include a minor bathroom refresh with a new vanity, mirror, and lighting.”

As long as the majority of the bathroom is in good condition, then it’s more than possible to make minor changes to the bathroom, while keeping the cost lower than what you receive from your tax return.

Take a look at the existing space and come up with a reasonable budget based on your tax return to determine what aspects of the bathroom you want to upgrade or replace.