The Average Tax Refund This Year May Surprise You
Key Points
Tax refunds are up this year thanks to the One Big Beautiful Bill Act.
Larger refunds aren't necessarily a good thing.
If you're getting a big refund, it's crucial to put it to good use.
- The $23,760 Social Security bonus most retirees completely overlook ›
If you haven't started working on your taxes yet, you're no doubt in good company. But if you're in line for a refund, you may be doing yourself a big disservice. The longer it takes you to file, the longer you'll have to wait for that money.
As of March 6, the IRS had processed close to 60 million tax returns. It had also, by that date, issued almost 44 million refunds. And speaking of refunds, the average number as of March 6 may surprise you.
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What the typical tax refund looks like so far
Since there are still a good number of weeks left before the April 15 tax-filing deadline, the average tax refund amount for the season is likely to change. But as of March 6, it was $3,676. That's a 10.6% increase from a year prior.
The One Big Beautiful Bill Act introduced a number of key changes to the tax code. That means many people are getting or can look forward to a larger tax refund this year.
But that's not necessarily a good thing.
While it's easy to celebrate a large refund, do keep in mind that a tax refund is really just the IRS returning money to you that it withheld needlessly the previous year. It's not a great thing to get a large refund because it means you gave the government a bigger interest-free loan for nothing in return.
Put your tax refund to work
If you're getting a big refund this year, it's important to make good use of that money. One thing you may want to prioritize is your emergency fund.
A lot of people are worried about the economy right now, especially with the Iran conflict driving energy prices up. Having a robust emergency fund is a great way to protect your finances in the event of a layoff or recession. You may want to aim for six months' worth of living expenses in the bank.
If you already have a complete emergency fund, your tax refund could be your ticket to boosting your retirement savings. The more money you're able to put into an IRA or 401(k), the more comfortable you're apt to be once your career ends.
You can also use your tax refund to tackle other financial priorities, like paying off debt, buying insurance you need, or hiring an attorney to help you put together an estate plan.
It'll be interesting to see what the average tax refund amounts to this year once the filing season wraps up. For now, know that if you're getting a larger check than you did in 2025, it's important to put that money to good use. You may also want to consider making adjustments to your tax withholding this year so you get larger paychecks month to month instead of having to wait until the following year to get the money you're owed.
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