IRS reports 10% rise in tax refunds
March 06, 2026
Tax refunds have increased by over 10% in 2026, with the average refund amounting to $3,804, which is $351 more than last year, according to the IRS report released on Friday, Feb. 27.
Despite a 1.9% decline in the number of returns processed, the IRS has issued 28.7 million refunds this year, totaling $109 billion.
The rise in refunds is partly due to changes in tax laws from H.R. 1, commonly known as the One Big Beautiful Bill Act, which eliminated taxes on overtime and tips and increased standard deductions.
The IRS anticipates that average refunds will exceed $1,000 in 2026, reflecting a significant increase from previous years. Learn more.
