IRS Reports Average Tax Refund of $3,521 as of March 27, Up $351 from Prior Year

The Internal Revenue Service (IRS) has released data showing an increase in average tax refunds for the 2026 filing season compared to the previous year. As of March 27, the average refund amount for individual filers stood at $3,521, up from $3,170 at a comparable point in 2025.

This information was reported by the IRS on Friday and reflects filings received through that date. The IRS has processed 88.4 million individual tax returns so far, out of approximately 164 million expected by the April 15 deadline. Most U.S. workers receive W-2 forms, indicating that employers withhold taxes from paychecks throughout the year.

Tax refunds occur when withholdings exceed the actual tax liability, while a balance due arises if withholdings fall short.

The observed increase in average refunds relates to tax legislation signed into law by President Donald Trump in July 2025. This legislation included provisions such as deductions for tip income, overtime earnings, income for seniors, and auto loan interest.

According to Treasury Secretary Scott Bessent, nearly 50% of tax returns filed in 2026 have included at least one of these deductions. Bessent made this statement during an interview on Fox & Friends in late March. Bessent noted that the overtime deduction appeared on 25% of returns received by the IRS as of March 20, covering almost 20 million filings.

In a January 26 release, the White House stated that the average taxpayer could receive an extra $1,000 or more in refunds, based on early October 2025 data from investment bank Piper Sandler. However, IRS data as of March 27 shows the average refund at $3,521, which is lower than the projected figure.

The size of tax refunds has drawn attention amid economic conditions affecting affordability for many Americans. Republicans have highlighted the role of the 2025 tax cuts in contributing to larger refunds as the November midterm elections approach.

Tom O'Saben, director of tax content and government relations at the National Association of Tax Professionals, commented on the trend during a press call last week. >"We are seeing an uptick in refunds," — Tom O'Saben (CNBC) O'Saben added that the increase may not be substantial for all filers.

Taxpayers can expect refunds if they overpaid through withholdings, though the IRS did not update withholding tables following the 2025 tax cuts, leading to potential overpayments for the remainder of that year. Filers facing balances due must pay by April 15 to avoid penalties.

As the deadline nears, the IRS continues to process returns, with potential for further data updates.