Americans are receiving larger tax refunds during the early weeks of filing season. However fewer taxpayers have submitted returns compared with the same period last year. Consequently new data highlights shifting trends as the 2026 tax season begins.
According to the Internal Revenue Service, the average refund reached $2,290 as of early February. That figure represents a 10.9 percent increase compared with the same stage last year. At this point in 2025, the average refund stood at $2,065.
Although larger tax refunds are reaching households, overall filing activity has slowed. The IRS reported receiving nearly 22.4 million returns by February 6. That total reflects a 5.2 percent decline from approximately 23.6 million returns last year.
Additionally the number of refunds issued so far has declined year over year. The agency distributed more than 7.4 million refunds this season. By contrast officials had issued nearly 8.1 million refunds during the same period previously.
Nevertheless total dollars refunded have increased despite fewer processed returns. The IRS paid out nearly $17 billion in refunds this year. That total marks a 1.9 percent increase from roughly $16.7 billion last year.
Direct deposit payments have also grown alongside larger tax refunds. The average direct deposit refund currently stands at $2,388. That amount reflects a 10.3 percent increase compared with $2,165 last year.
Officials encourage taxpayers to file electronically to receive refunds faster. The IRS states that electronic returns typically process within twenty one days. Meanwhile paper filed returns may require six weeks or longer for processing.
Taxpayers can monitor payment progress through the agency’s online tracking tools. The “Where’s My Refund?” system provides status updates within twenty four hours of e filing. Additionally the tool displays information for the current year and prior returns.
If taxpayers amend a submitted return, processing may require additional time. Amended filings can take several weeks to appear in the system. In some cases the IRS may require up to sixteen weeks to finalize review.
Financial analysts suggest larger tax refunds could influence consumer spending patterns. However slower filing activity may delay broader economic effects in early months. As the season progresses, officials expect overall filing numbers to increase steadily.
