2026 Tax Filing Trends and Refund Growth

The Internal Revenue Service (IRS) has released updated data for the 2026 tax filing season, covering activity through March 20. The figures indicate a notable rise in the average tax refund, which has reached $3,571. This represents a 10.9% increase, or $350 more than the $3,221 average recorded at the same time last year.

Total disbursements have also seen significant growth. The IRS has issued over $202 billion in refunds, a 12.9% increase compared to the $179 billion distributed by this point in 2025. Additionally, the agency has processed approximately 56.7 million refunds, marking a 1.8% increase in volume.

Shifting Filing Behaviors and Digital Adoption

Taxpayers are increasingly moving toward self-preparation methods. IRS data shows a 1.9% rise in self-prepared returns, with more than 37.8 million individuals filing independently. Conversely, returns filed by tax professionals on behalf of clients have seen a 1% decline.

The agency is also seeing a surge in digital engagement, with visits to IRS.gov climbing 55.6% to over 380 million. This increase in traffic may be attributed to taxpayers seeking guidance on new tax laws introduced by the One Big Beautiful Bill Act, which includes:

  • Temporary deductions for overtime and tip income
  • Enhanced deductions for seniors
  • Auto loan interest deductions
  • The establishment of "Trump Accounts" for children

Direct Deposit and Filing Deadlines

The IRS continues to encourage the use of direct deposit over paper checks. Direct deposit refunds have risen by 6.5% to nearly 57.3 million, with the average refund via this method reaching $3,561. While the agency is phasing out paper checks, it continues to offer alternatives for those without bank accounts, such as digital wallets and prepaid debit cards.

The deadline to file 2025 tax returns remains Wednesday, April 15. The IRS advises taxpayers to remain cautious regarding potential scams and to utilize official resources to ensure a smooth filing process. Those requiring additional time may request an extension.