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 Internal Revenue Service (IRS) report released on February 27th. Despite a 1.9% decline in the number of returns processed, the IRS has issued 28.7m refunds this year, totaling $109bn. The rise in refunds is partly due to changes in tax laws from the “One Big Beautiful Bill,” 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. Taxpayers have until April 15th 2026, to file their returns.
