Tax Refunds Up Nearly 11%, With Over 37 Million Cashing In On New Tax Breaks

March 30, 2026

Tax refunds have risen by roughly 11% this year, with more than 37 million Americans benefiting from newly introduced tax breaks under the One Big Beautiful Bill.

“About 44% of filers—around 37.5 million people—have claimed at least one of the new provisions, including exemptions on tips, overtime pay, and some Social Security income, as well as deductions for car loan interest,” said Treasury Secretary Scott Bessent. “Among these, the overtime deduction has emerged as one of the most widely used.”

At the same time, more than 6 million Americans have signed up for Trump Accounts, a new tax-advantaged investment program for children designed to encourage long-term investing. Bessent highlighted these figures during a Cabinet meeting with President Trump last week.

According to the latest IRS data, more than 78.8 million tax returns have been filed so far this season. The average refund currently stands at $3,571, up from $3,221 in 2025—an increase of about $350 per filer.

However, the gains are not evenly distributed. Higher-income households and taxpayers in high-tax states are seeing some of the largest increases, partly due to changes such as a higher cap on state and local tax (SALT) deductions. Meanwhile, lower-income filers are generally experiencing more modest benefits.

Source: yahoo!finance

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