American taxpayers are at the moment heading into one of the most attractive tax refund seasons in more than a decade — thanks to President Donald Trump’s signature second-term legislation.
The White House projects that new federal tax provisions, along with unchanged paycheck withholding, will result in 2026 tax refunds to be pushed significantly higher. In many cases, this could rise by hundreds of dollars, or even thousands.
The Internal Revenue Service officially started accepting 2025 tax returns on 26 January, launching a taxpaying season that the White House projects could deliver an additional $100 billion returns to taxpayers.
Around $429 billion in refunds is expected to be delivered during the 2026 tax season. This is up from $329 billion last year, according to Treasury Department projections.
“Millions of Americans are poised to receive significantly larger tax refunds thanks to President Donald J. Trump’s landmark Working Families Tax Cuts Act — which every Democrat in Congress opposed,” the White House said in a statement referring to the legislation also known as One Big Beautiful Act.
How much will Americans save in 2026 tax season?
According to the White House, the average American taxpayer is expected to receive an additional $1,000 or more in the 2026 tax season. The typical payout is projected to exceed $4,000.
“The historic legislation is delivering the biggest tax refund season ever,” the White House said.
According to experts cited by Business Insider, one can even get more back depending on “income and circumstances”.
In 2025, more than three-fifths of US households received an average refund of $3,167 according to data cited by The Wall Street Journal.
It is to be noted that all filers do not receive refunds — only 60% do and they are receiving sharply higher payouts.
Why will Americans receive more tax refund?
The jump is linked directly to President Donald Trump’s sweeping One Big Beautiful Bill Act, which was passed in July.
“President Trump’s Working Families Tax Cuts Act provides broad-based tax relief for hardworking Americans, with the average taxpayer expected to see nearly $4,000 in total tax savings in 2026,” the White House said.
According to the Tax Foundation, the changes in the Act brought down individual income taxes by roughly $144 billion in 2025 alone.
The key provisions in the One Big Beautiful Act, also known as the Working Families Tax Cuts Act, include: No Tax on Tips, No Tax on Overtime, No Tax on Social Security, a deduction for auto loan interest on Made-in-America vehicles and more.
