The average tax refund this season is 11.2% higher than in 2025, based on the latest data from the IRS.
As of April 10th, the average refund for individual filers was reported to be $3,397, which is an increase from $3,055 last year. This data includes around 114 million individual returns, with expectations that about 164 million people will file by tax day. An update next week will provide data through the April 15 deadline.
On the political front, President Trump’s 2025 bill, dubbed the “Working Families Tax Cut,” has gained attention among Republicans as Tax Day approaches. With midterm elections coming up, party members are highlighting Trump’s tax cuts and the increase in average refunds.
At the same time, many Americans are grappling with rising costs of living, including gas, food, and utilities. A noteworthy statistic is that around 23% of filers expecting refunds plan to use that money to pay off credit card debt, and the same percentage intend to save on their payments, according to a recent survey by CNBC and SurveyMonkey of 3,494 U.S. adults conducted in late March.
Who benefits from Trump’s ‘Big and Beautiful Bill’?
The Treasury Secretary mentioned that this tax season has been favorable for Americans, many of whom are benefiting from Trump’s tax cuts. He pointed out that over 53 million filers have taken advantage of new tax deductions, which include allowances for tip income, overtime pay, senior citizens, and auto loan interest.
According to the Treasury Department, those who claimed these deductions saw an average tax reduction of over $800. The impact varies: some might experience a higher refund, while others could owe less in taxes.
Additionally, some who itemize their deductions are seeing benefits from changes to the federal deduction limit for state and local taxes, or SALT. Trump’s bill proposes increasing this cap from $10,000 to $40,000 in 2025. However, the most recent analyses suggest that these SALT adjustments primarily favor high-income earners, although exact figures on how many claimed the deduction this season have yet to be released by the Treasury Department.
