IRS: Average 2025 Tax Refund Up 11% to $3,521

The Internal Revenue Service reports that the average tax refund for the 2025 tax year stands at $3,521 as of late March, marking an 11 percent increase from the $3,170 average recorded at a similar point last year. This uptick follows the enactment of the One Big Beautiful Bill Act last July, which introduced tax provisions including exemptions on tips, overtime pay, and Social Security benefits, along with deductions for car loan interest and expanded breaks for seniors.

Administration officials attribute the rise to these measures, noting that refunds are 24 percent higher than the four-year average from the period before President Donald Trump took office in 2021. The analysis draws from daily Treasury statements spanning 2021 to 2026. An official, speaking anonymously ahead of the data release, emphasized that the changes benefit taxpayers across income levels through reduced tax liabilities and associated spending adjustments. The White House had projected in January that average refunds would increase by at least $1,000 compared to 2025, describing the policies as transformative. However, current figures show a more modest gain overall.