With the April 15 tax filing deadline at hand, the average refund this year has risen to more than $3,400—an 11 percent increase from last year—according to the Treasury Department.
The department highlighted this tax season as the first under the One Big Beautiful Bill Act, which made the 2017 tax cuts permanent and introduced new provisions, including the elimination of taxes on tips and overtime pay.
More than 53 million taxpayers claimed deductions tied to these provisions, according to a Treasury Department press release. That includes more than 6 million who reported no taxes on tips, more than 25 million who used the overtime deduction, and about 30 million older Americans who benefited from an expanded deduction.
In addition, more than 1 million filers deducted interest on car loans for new vehicles; the average such deduction exceeded $1,800.
The Treasury Department also reported that 5 million Trump Accounts have been opened, and 1.2 million qualified for a $1,000 contribution under a pilot program. This program is meant to benefit newborn Americans.
Tax benefits were extended to families as well. More than 34 million households claimed the enhanced child tax credit, which was permanently expanded under the 2025 law, and more than 105 million taxpayers used the permanently doubled standard deduction.
On average, filers received tax cuts of more than $800.
Treasury Secretary Scott Bessent said the results reflect a broader effort to reduce the tax burden on working Americans, particularly those in middle- and lower-income brackets. He also emphasized ongoing efforts by the Treasury Department and the IRS to improve how the tax system serves taxpayers.
“From the shop floor to the kitchen table, taxpayers are feeling the difference of the largest tax cuts in our nation’s history, and millions of Americans are keeping more of what they earn and seeing their paychecks go further than ever before,” he said in a statement.
Earlier in the year, the White House projected that average refunds would increase by at least $1,000. Current IRS data show that the average refund is $3,462, up about $350 from last year’s $3,116.
Treasury officials have also noted that refunds this season are up 24 percent from the four-year average before President Donald Trump took office.
The administration has promoted these tax changes as part of its broader economic message ahead of the November midterm elections. However, that messaging has competed with concerns over rising gas prices linked to the war in Iran.
This tax season also comes amid significant changes at the IRS, including leadership turnover and a 27 percent workforce reduction over the past year tied to government efficiency measures.
Bessent is scheduled to appear at a White House briefing later on April 15 to discuss the tax cuts.
The Associated Press contributed to this report.
