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Personal finance Score 15 Bullish

Average Tax Refund Rises by $350 Amid 2026 Filing Season

Apr 06, 2026 17:18 UTC
Immediate term

The average IRS tax refund has increased by $350 compared to the same period in 2025, according to the latest IRS data. This rise is attributed to tax changes from President Donald Trump's legislation.

  • Average tax refund increased to $3,521 in 2026 from $3,170 in 2025.
  • 88.4 million individual returns have been received out of an estimated 164 million expected.
  • Tax changes from President Donald Trump's legislation are linked to the increase in refunds.
  • Deductions for tip income, overtime earnings, seniors, and auto loan interest have been claimed on nearly 50% of 2026 tax returns.
  • The overtime deduction has been claimed on 25% of returns, affecting almost 20 million filings.
  • White House projections of $1,000 additional refunds have not materialized in IRS data.

As the April 15 tax deadline approaches, the average tax refund for individual filers has risen to $3,521, up from $3,170 in the same period in 2025, according to the IRS. This increase is based on data from 88.4 million individual returns received out of an estimated 164 million expected by the deadline. The rise in refunds is linked to changes in tax policy introduced by President Donald Trump's legislation in July 2025. These changes, including deductions for tip income, overtime earnings, seniors, and auto loan interest, have been claimed on nearly 50% of the tax returns filed in 2026. Treasury Secretary Scott Bessent highlighted the popularity of the overtime deduction, which has been claimed on 25% of returns, amounting to almost 20 million filings as of March 20. However, while the White House initially projected that taxpayers could receive an extra $1,000 or more, the actual average refunds have been smaller than this estimate. Tom O'Saben, director of tax content and government relations at the National Association of Tax Professionals, noted an uptick in refunds but cautioned that the significance of this increase can vary depending on individual circumstances.

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