Summary
Tax refunds for 2026 are higher compared to the same period last year. This increase is influenced by changes in tax rules introduced by President Donald Trump and larger withheld amounts from paychecks. Refunds are expected to continue rising as more tax credits are processed.
Key Facts
- Average tax refunds are up by 10.9% compared to last year.
- The average refund as of early February is $2,290, up from $2,065 at the same time in 2025.
- Changes in tax rules include no taxes on tips and overtime, and an expanded child tax credit.
- The One Big Beautiful Bill Act (OBBBA) reduces income tax rates but did not fully adjust withholding tables.
- The IRS has received 22.3 million returns, about 14% of expected filings for this year.
- Larger refunds are a result of excess withheld taxes throughout the year.
- Common tax credits like the Earned Income Tax Credit will also increase refunds as they are processed.
- Tax returns are due by April 15 unless an extension is requested.
