Trending Now - Average Tax Refund Reaches $3,700 in Current Filing Season

WHO:

President Trump, Secretary of Treasury Scott Bessent, Tom O’Saben (director of tax content for the National Association of Tax Professionals), Jan Lewis (vice chair of the American Institute of CPAs), Josh Youngblood (Dallas-based enrolled agent), Tina Collins (director at large for the National Association of Enrolled Agents), Melanie Lauridsen (AICPA’s vice president of tax policy and advocacy).

WHAT:

The average tax refund for the current filing season is $3,700.

The IRS has processed nearly 63.5 million returns, about 45% of the total expected by April 15th, 2026.

More than 27.5 million filers claimed at least one of Trump’s new tax cuts using Schedule 1-A.

More than 15.5 million returns claimed the "No Tax on Overtime" break.

More than 3.5 million claimed "No Tax on Tips."

More than 9.2 million returns claimed the Enhanced Deduction for Seniors.

More than 690,000 claimed "No Tax on Car Loan Interest."

Nearly 3.5 million "Trump Accounts" have been opened.

The average refund paid out as of February 27th, 2026, is $3,742, an increase of 10.6% from the same time in 2025.

WHERE:

The IRS operates nationwide in the United States.

WHEN:

The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4th, 2025.

The current tax filing season is for the year 2026.

As of February 27th, 2026, the IRS reported processing 36.5 million refunds.

WHY:

The tax cuts are intended to deliver financial relief to Americans and prevent a broad tax increase for individuals.

HOW:

The IRS is operating with roughly 27% fewer employees than in 2025.

The new tax breaks include deductions for overtime and tips, which reduce the tax owed by a percentage rather than providing a dollar-for-dollar credit.

The IRS has issued updated rules for the tips deduction, affecting self-employed filers.

(UPDATED March 10, 2026 17:20 UTC)

Today, President Trump, along with key officials from the Treasury and tax organizations, announced that the average tax refund for this filing season is $3,700, with the IRS having processed nearly 63.5 million returns so far. Over 27.5 million filers have taken advantage of Trump’s new tax cuts, including more than 15.5 million who claimed the "No Tax on Overtime" break and over 9.2 million who benefited from the Enhanced Deduction for Seniors. As of February 27, 2026, the average refund has increased by 10.6% from last year, reflecting the administration's efforts to provide financial relief to Americans during this tax season.