By Matt Durr
mlive.com
(TNS)
The average tax refund is up by more than $350 year-over-year according to data released by the Internal Revenue Service for the week ending Feb. 28, 2026. That represents a 10.6% increase over refunds issued for the same time period in 2025.
So far in 2026, the average refund is worth $3,676, up from the $3,324 in 2025. The average refund for those who use direct deposit is down slightly when compared to average refund in general, coming in at $3,668. Still, that’s up 8.6% over 2025’s $3,379.
The IRS has distributed $160.8 billion in refunds, up from $145 billion in 2025. That represents an increase of 10.9% year-over-year. Those increases come despite the number of returns having been filed and processed being down by 1.2% and 1.4% respectively. This year, the IRS has received 60.7 million returns and processed 59.9 million.
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The average refund is up in large part because certain taxpayers began receiving their refunds in mid-February. Taxpayers who claim the Earned Income Tax Credit or the Additional Child Tax Credit could not begin receiving their refunds until that time due to federal law. The entire refund must be held if the taxpayer claims those credits.
With those refunds being distributed, the average refund continues to climb.
However, the agency also expects the numbers to decline as tax season continues. Historically, the refund averages tend to show big increases at the start of tax season, before leveling out as the April 15 deadline approaches.
During tax season, the IRS typically releases a weekly update on the return and refund data.
The overall increase in refunds can be attributed in part to changes in the tax code made as part of the “One Big Beautiful Bill” passed last year. Among the major changes were no tax on overtime and tips, deductions on auto loan interest for American-made vehicles and more.
According to the White House, refunds are expected to rise on average by more than $1,000 in 2026. In 2025, the average refund for the entire tax season was worth $3,800, a significant increase from the averages of $3,052 in 2024 and $3,004 in 2023. Increases to the standard deduction are also contributing to the increased refunds.
Typically, taxpayers who submit their return electronically and opt for direct deposit will receive payment within 21 days after the return is accepted. Taxpayers can track the status of their refund through the IRS’s Where’s My Refund tool. According to the IRS, refund status will appear around 24 hours after a current-year return is e-filed, three or four days after a prior-year return is e-filed, or four weeks after a paper return is filed.
Taxpayers have until April 15, 2026, to file their 2025 return, or they may be subject to fines and penalties.
Photo credit: agshotime/iStock
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