Tax Day is here: IRS sending bigger refunds to more Americans this year

IRS tax refund 2026: As the Tax Day deadline arrives, millions of Americans are either wrapping up their filings or rushing to request an extension before midnight. While the pressure to file is still there, this year’s tax season is bringing slightly better news for many taxpayers.

IRS Refunds Increase in 2026: Average Refund Hits $3,500

Refunds are coming in higher, with the average amount reaching about $3,500, an increase of roughly 11% compared to last year, as per a report. More people are also receiving refunds, with the IRS issuing nearly 70 million so far through April 4, up from nearly 68 million at the same time last year and about 66.8 million in 2024, as per a Wtnh.com report.

Why More Americans Are Receiving Tax Refunds This Year

The increase is partly tied to changes introduced under US president Donald Trump’s “One Big Beautiful Bill,” which added new deductions for seniors, tip income, overtime pay, and car loan interest. These updates are contributing to an average refund boost of about $775.

Rising Costs vs Bigger Refunds: Why It May Not Feel Like a Boost

However, the extra money may not go as far as expected. Rising everyday expenses continue to weigh on households, with gas prices averaging $4.11 per gallon nationwide, according to AAA, and grocery prices up nearly 2% year over year, based on data from the Bureau of Labor Statistics, reported Wtnh.com.

Despite these pressures, there is hope that larger refunds could still have a positive impact. Since consumer spending drives about two-thirds of economic growth, increased refunds may encourage more spending.

IRS Extension Deadline 2026: How to Get More Time to File

For those who haven’t filed yet, time is running out. The IRS estimates that more than 20 million taxpayers will miss the deadline. Filing for an extension can provide extra time until October 15, but it must be requested by April 15.

FAQs

What happens if I miss the filing deadline?
You may face penalties unless you request an extension.

How long does an extension give you?
An extension gives you until October 15 to file your return.