Taxpayers are receiving noticeably larger refunds this filing season. According to the latest data released by the Internal Revenue Service (IRS), the average tax refund for individual
Taxpayers are receiving noticeably larger refunds this filing season. According to the latest data released by the Internal Revenue Service (IRS), the average tax refund for individual filers is 11.2% higher than it was at the same time last year.
As of April 10, 2026, the average refund amount reached $3,397. That’s up from $3,055 during the same period in 2025. The IRS reported that about 114 million individual tax returns had been filed by that date, out of roughly 164 million expected by the April 15 deadline.
Why Refunds Are Higher
A major reason for the increase appears to be new tax breaks introduced in President Donald Trump’s 2025 legislation, often referred to as the “working families tax cuts.”
Treasury Secretary Scott Bessent called it “a great tax season for the American people,” noting that more than 53 million filers claimed at least one of the new deductions. These include breaks for tip income, overtime earnings, seniors, and auto loan interest. On average, filers who claimed these deductions saved more than $800 in taxes.
Some taxpayers also benefited from a higher cap on the state and local tax (SALT) deduction. The limit was raised from $10,000 to $40,000 for 2025. This change is expected to help higher-income filers the most.
Republicans have pointed to these larger refunds as they defend their slim majorities in Congress ahead of the upcoming midterm elections. Many lawmakers have highlighted the tax cuts as a win for working families.
How People Plan to Use Their Refunds
With the cost of living still high—especially for gas, electricity, food, and other daily expenses—many Americans are thinking carefully about how to spend or save their refunds.
According to the CNBC and SurveyMonkey Quarterly Money Survey conducted in late March, nearly one-quarter (23%) of people expecting a refund said they planned to use the money to pay down credit card debt. Another 23% said they would put the money into savings.
What This Means for You
If you received a larger refund this year, it’s worth thinking about whether your paycheck withholdings are set correctly. While a big refund feels good, it can also mean you’ve been lending the government interest-free money throughout the year. Some experts recommend adjusting your W-4 form so you keep more of your paycheck during the year and still avoid owing a large tax bill.
The next IRS update, expected next week, will include final numbers through the April 15 tax deadline.
