Tax Refunds in 2026 are Projected to be the Largest Ever

Tax refunds in 2026 are projected to be the largest ever, the White House reports.: “Tax filers could expect an extra $1,000 bump to their tax refund next year, in what could be a record-breaking tax refund season. In total, the working families tax cuts will give American taxpayers $191 billion in net new tax relief… For the 2026 tax filing season, taxpayers are expected to take home an additional $91 billion in refunds and keep an additional $30 billion in their paychecks from reduced withholdings.”

According to the House Ways and Means Committee:

Tax filers could expect an extra $1,000 bump to their tax refund next year, in what could be a record-breaking tax refund season. In total, the working families tax cuts will give American taxpayers $191 billion in net new tax relief in 2026. This level of tax relief will go a long way in helping working families make ends meet.

They also note:

“Middle-class families will get an outsized share of the tax cuts from President Trump’s working families tax cut, according to new analysis done by the Tax Policy Center, a left-leaning think tank. The study finds middle-class earners will get a $1,780 tax cut – a tax cut which every single House and Senate Democrat voted against.”

“Millions of Americans will see the working families tax cuts put more money in their pockets when they file taxes this coming spring. In our tax relief bill, Republicans wasted no time and ensured that we cut taxes on income earned this year. Americans voted to have more money in their wallet, and that’s exactly what President Trump and Republicans delivered,” said Ways and Means Committee Chairman Jason Smith (MO-08).“Tax refunds are a big deal for a lot of American families. It covers home repairs, health care, or summer vacations; all of which became completely unaffordable under Joe Biden. Thanks to the working families tax cuts, more Americans will have greater financial security and ability to provide for their future.”

“Even left-leaning academics cannot deny the facts: President Trump and Republicans delivered for the working families of America. Moms and dads, waitresses, line workers, welders, cops, and seniors will all see bigger paychecks thanks to Republicans’ working families tax cuts. Despite Democrat lies, the fact is that President Trump made the tax code fairer and more beneficial for working class Americans while placing a greater share of the tax burden on the wealthy,” said Ways and Means Committee Chairman Jason Smith (MO-08).“The tax cuts will put more money in the pockets of working families and give them a bigger boost compared to the wealthy Americans that Democrats chose to shower with tax breaks under President Biden.”

For the 2026 tax filing season, taxpayers are expected to take home an additional $91 billion in refunds and keep an additional $30 billion in their paychecks from reduced withholdings – according to a new study from Piper Sandler based on Joint Committee on Taxation (JCT) data.

The working families tax cuts put more money back into the American people’s pockets families in multiple ways:

• Makes the doubled standard deduction and lower tax rates from the 2017 Trump tax cuts permanent.
  • Further increases the Standard Deduction by up to $1500 per family in 2025.
• No tax on tips
• No tax on overtime
• No tax on Social Security
• Boosts the Child Tax Credit to $2,200 and indexes its value to inflation.
• Expands access to child care and makes permanent the paid leave tax credit permanent.
• Expands 529 savings accounts to help families choose education that best fits their needs.
• Expands health savings accounts so Americans families control their own health care.

Highlights of the Working Class Tax Cuts: 

• Middle Class Gets Outsized Cut: The middle 20 percent of earners, will get 13 percent of the total tax cut while only currently paying 10 percent of all income tax. This means a $1,780 tax cut for every middle-income taxpayer from all of President Trump’s tax cuts.
• Working Families Get Outsized Cut: Taxpayers in the bottom 40 percent of earners will see their taxes cut by 15 percent. The lowest 20 percent of earners get the largest reduction in taxes of any income group.
• Top 1 Percent Will Pay a Larger Share: The working families tax cut increases the share of federal income taxes paid by the top 1 percent of taxpayers to nearly 35 percent.