The Internal Revenue Service (IRS) reported that the average tax refund in the 2026 tax season reached $3,571, which represents an increase of 10.9% compared to the average of $3,221 recorded in the same period of 2025.
The figure comes from data accumulated up to March 20, with approximately 79 million individual tax returns received out of the approximately 164 million expected before the April 15 deadline.
The 2026 season is the first to reflect the tax changes resulting from the One Big Beautiful Bill Act (OBBBA). The tax legislation signed by President Donald Trump in July 2025 introduced new deductions for tip income, overtime pay, car loan interest rates, and an additional benefit of $6,000 for taxpayers over 65 years of age.
Why Did Tax Refunds Increase This Year?
A key factor explaining the increase in refunds is the so-called “withholding lag“: the IRS did not adjust the payroll withholding tables when the law was passed in July, causing many workers to overpay for the remainder of 2025. When they file their return, that excess is returned as a refund.
The total amount refunded by the IRS as of March 20 exceeded $202 billion, compared to $179 billion for the same period in 2025, an increase of 12.9%. The number of refunds issued grew by 1.8%, reaching more than 56.7 million.
Regarding the payment method, the average refund per direct deposit stood at $3,561, up 8.4% from the previous year. More than 98% of refunds were processed through that route, and more than 80% were credited in less than 21 days. According to data from the agency itself, the IRS also noted that visits to its website increased by 55.6% compared to the previous season.
Tax Refunds: The Gap Between Promise and Results
In January, the White House projected that refunds could increase by $1,000 or more per taxpayer. Official data shows that the actual average increase has been around $350, although with significant variations depending on the profile of each declarant.
During a hearing before the House Ways and Means Committee in March, the IRS commissioner, Frank Bisignano, noted that taxpayers who claimed the new deductions on Schedule 1-A—which groups deductions for tips, overtime, seniors, and vehicle loan interest—were receiving refunds on average $775 higher than the previous year. However, that figure does not apply to all taxpayers.
Who Benefits the Most
Analysts warn that the increased profits are not distributed evenly. Legislation raised the deduction cap for SALT (state and local taxes) to $40,000 for the 2025 tax year, compared to the previous limit of $10,000. To take advantage of it, the taxpayer must itemize their deductions instead of taking the standard deduction, an option historically chosen by less than 10% of filers.
William McBride, chief economist at the Tax Foundation, noted that this segment—primarily high-income taxpayers residing in high-cost-of-living cities—does not typically file early, so its impact on the average could become noticeable in the weeks leading up to the filing deadline. “It’s an important benefit for high-income individuals living in expensive cities,” McBride said. “These people don’t typically file early.”
According to estimates from the Tax Foundation, the OBBBA tax changes represent an average cut of $611 per declarant, or a 0.8% increase in net income after taxes. Middle- and upper-middle-income groups account for the largest proportion of beneficiaries, while lower-income taxpayers—with little or no tax liability—receive no benefits, and very high-income earners are excluded from most of the new deductions due to eligibility limits established by law.
File Now: The Deadline Is April 15th
The IRS reminds taxpayers that the deadline to file their 2025 tax return is Wednesday, April 15, 2026. Those who need an extension can request it before that date, although they will have to make an estimated payment if they anticipate owing taxes. The extension grants more time to file the return, but not to pay.
The agency recommends including valid bank information when filing your tax return to receive your refund via direct deposit, the fastest and most secure method. Those who did not provide this information when filing their return will receive a notification from the IRS with instructions on how to update their information and receive their payment within approximately seven days.
