IRS Reports Significant Increase in Tax Refunds for 2026
Bigger Checks for Most Taxpayers
As of early February 2026, the average tax refund is $2,290. This is an increase of nearly 11% over last year’s average.
Financial experts from firms like Piper Sandler believe this is just the beginning; they predict that by the end of the season, the average refund could grow by as much as $1,000 per person.
Why are refunds higher?
The boost in refund amounts is largely due to new tax laws signed in July 2025.
While the biggest benefits are seen by high-income earners, the IRS notes that middle- and low-income taxpayers are also seeing more money back in their pockets.
Key Facts and Figures
- Total Money Sent: The IRS has already sent out over $16.9 billion in refunds, beating last year's pace.
- Direct Deposit Advantage: People who chose direct deposit are receiving even higher averages, currently sitting at $2,388.
- Fewer Filers so Far: While refund amounts are up, the number of people who have filed so far (22.4 million) is slightly lower than last year.
- Online Interest: More people are using digital tools, with a 35% increase in traffic to the official IRS.gov website.
Why some families are still waiting
If you are claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC), you might have to wait a little longer.
Because of a law called the PATH Act, the IRS is required to hold these specific refunds until mid-to-late February to prevent fraud.
Refund amounts are expected to jump even higher in late February once these family-related payments are processed.
How to get your money faster
The IRS continues to recommend electronic filing as the best way to get your refund. Taxpayers who file online and use direct deposit typically receive their money in less than 21 days.
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