April Tax Refunds Average 11 Percent Higher Than Last Year as IRS Processes Millions of Returns
The IRS is processing millions of tax refunds this week, with the average refund running 11.2 percent higher than the same period last year. Taxpayers who filed between March 30 and April 5 can expect direct deposits within a few business days.
Millions of Americans are receiving tax refunds this week, with the average payout running 11.2 percent higher than the same period in 2025, according to IRS data.
The federal tax deadline was April 15, 2026. Taxpayers who filed between March 30 and April 5 are now seeing direct deposits arrive in their bank accounts. Paper checks take an additional week or more to arrive.
The IRS said delays can occur for several reasons: filing errors, claims for the Earned Income Tax Credit or Additional Child Tax Credit, outstanding debts subject to the Treasury Offset Program, or paper-filed returns, which can take until May or later to process.
Financial advisors say the higher average refund reflects a combination of factors, including changes in withholding tables and the impact of tariffs on consumer prices, which may have affected some deductions.
The refund season comes as Americans are navigating a challenging financial environment. Gas prices rose nearly 35 percent in the month leading up to March 24, driven by a spike in crude oil prices tied to conflict in the Middle East. The national average reached $3.98 per gallon before the International Energy Agency released emergency reserves.
Mortgage rates also moved higher, with the average 30-year fixed rate rising to 6.22 percent by mid-March, up from 6.11 percent the prior week. The Federal Reserve held rates steady at its most recent meeting, and markets are pricing in more than a 70 percent chance the Fed keeps rates unchanged through December.
Financial planners recommend using tax refunds to pay down high-interest debt first, then building or replenishing an emergency fund. Those with no high-interest debt may consider contributing to a Roth IRA or taxable brokerage account.
The IRS said it expects to process the bulk of remaining returns by the end of May.
