Taxpayers in the United States are receiving larger refunds this filing season, according to the latest figures released by the Internal Revenue Service (IRS).
New data shows the average refund has increased by more than 10 percent compared with the same point last year, reflecting a combination of recent tax changes and the timing of certain credits being paid out.
As of late February, the average refund reached $3,742—up from $3,382 during the equivalent period in 2025, an increase of 10.6 percent.
Earlier season data also showed a year-over-year rise, with the average refund climbing from $2,169 to $2,476 when comparing mid-February figures from 2025 and 2026.
Why Are Tax Refunds Higher This Year?
Several tax policy changes introduced under President Donald Trump are expected to boost refunds for many households this year. Among the most significant updates are new rules eliminating taxes on certain types of income, including tips and overtime pay, alongside an expanded child tax credit.
These changes were introduced through the One Big Beautiful Bill Act, which Trump signed into law in July 2025. The legislation is set to increase refunds for millions of Americans. The Tax Foundation, an independent nonpartisan think tank, said refunds could range from between $300 and $1,000 for filers. So far, the average refund amount across all filers has grown by about $360 compared with the same stage last year, IRS data shows.
Some of the new deductions are aimed specifically at workers in industries where tips or overtime make up a significant portion of earnings. Service employees earning under $150,000 annually can now deduct up to $25,000 in qualified tip income. Workers who receive overtime pay may also deduct up to 250 hours of that income, subject to certain income limits.
Older taxpayers are also eligible for a new tax break. Individuals aged 65 and older can claim an additional $6,000 deduction. The full amount is available to single filers with modified adjusted gross income below $75,000 and married couples earning less than $150,000.
Other Tax Credits
The timing of certain tax credits has also played a role in pushing the average refund higher in recent weeks.
Taxpayers claiming the Earned Income Tax Credit or the Additional Child Tax Credit face specific rules that delay refunds. Federal law prevents the IRS from issuing refunds for these filers before mid-February, regardless of when they submitted their tax returns.
The EITC is designed to support low- to moderate-income workers, particularly families with children. Because it is refundable, eligible taxpayers may receive a payment even if they owe no federal income tax. The amount depends on factors such as income, filing status and the number of qualifying children. The IRS estimates about 24 million taxpayers qualify for the credit.
The IRS said on its website: “If you claimed the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) and have already filed your taxes, you can expect to get your refund by March 2 if: You file your return online; you choose to get your refund by direct deposit; we found no issues with your return.”
As these delayed refunds are now being issued, they have contributed to the rise in the overall average refund amount.
What Happens Next
Tax season remains ongoing until April 15 for those who have not yet filed their returns.
After a return is submitted, most refunds sent electronically should arrive within about 21 days, according to the IRS, assuming there are no problems with the filing.
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