The IRS Just Released The Average Tax Refund In 2026 (So Far)

January 26, 2026, marked the first day that American taxpayers could officially file their tax returns for the 2025 tax year. Just 11 days later, the IRS released a status update that it had already received 22.3 million returns — the vast majority of which had already been processed. As of February 6, 2026 the IRS had refunded nearly $17 billion spread across 7.4 million refunds, with an average refund amount of $2,290. That figure marks a roughly 11% increase from the average amount refunded as of the same time in 2025 — in keeping with expert predictions that bigger tax refunds would happen in 2026.

As of the same time in 2025 — 11 days into the season – tax refunds averaged $2,065. This means that refund amounts are still fairly far away from reaching the roughly $1,000 increase that many analysts had estimated. However, by the time the 2025 tax season came to a close, the IRS reported that the average refund amount had increased to $3,052. So, the lower-than-projected average seen so far in 2026 is not exactly unprecedented. 

While you you should never rush your taxes, it could still be worthwhile to file as early as you can in the season. Especially since some filers' will have to wait longer to receive their refunds than others. With that said, those claiming the Earned Income Tax Credit and Additional Child Tax Credit on their 2025 taxes shouldn't expect an early refund since the IRS is required to hold these funds until mid-February.

The driving force behind increased tax refunds is the Trump administration's One Big Beautiful Bill Act (OBBBA). Amid the roughly 900 pages of new legislation there were several significant tax policies. For instance, service workers filing individually can now deduct up to $25,000 in qualified tips from their yearly income — assuming they don't make over $150,000 per year. This is a drastic shift for service industry workers since, per ADP Research, median tips earned in 2024 exceeded traditional wages by roughly $4 per hour. Seeing as how the Bureau of Labor Statistics found that servers made an average of $36,530 per year in 2023, it's safe to assume that most service industry workers will be taking advantage of this new deduction. The OBBBA also allows individual filers making less than $150,000 to deduct up to $12,500 in overtime pay, while joint filers can deduct $25,000.

The standard tax deduction also increased from $14,600 in the 2024 tax year to $15,750 in 2025, which could potentially account for a large chunk of the increase that many filers are anticipating. Of course, deductions aren't the only way to save when you file your taxes. Those looking to cut costs even further this tax season may want to consider some of the best ways to file taxes for free.