Recent data from the IRS reveals a notable increase in average tax refunds for the 2026 filing season, with the average refund amount rising to $3,571, a $350 or 10.9% increase compared to the $3,221 average reported at this time last year. As of March 20, the total refunds issued by the IRS exceeded $202 billion, reflecting a 12.9% increase from the previous year's $179 billion.
While the increase in refund amounts is significant, the overall filing season is progressing at a slightly slower pace than in 2025. The IRS has received nearly 78.9 million returns, a decrease of 0.9% from the prior year, and has processed just over 77.8 million returns, down 1.1%. Interestingly, there has been a slight uptick in self-prepared tax returns, which rose by 1.9% to more than 37.8 million. Conversely, e-filed returns submitted by tax professionals have declined by 1%, totaling approximately 39.7 million.
Additionally, direct deposit refunds have gained popularity, with nearly 57.3 million refunds issued this way, marking a 6.5% increase from last year. The average direct deposit refund has also risen to $3,561, an 8.4% increase.
In terms of taxpayer engagement, visits to the IRS website surged by 55.6% from the previous year, climbing from 244 million to over 380 million visits. This increase may be attributed to recent changes in federal tax law under the One Big Beautiful Bill Act, which introduced various new deductions and savings programs.